Iran gasfield proves too hot to handle for Total

Iran gasfield proves too hot to handle for Total

Total signed a contract in 2017 to develop phase 11 of Iran's South Pars field with an initial investment of $1 billion - a contract Tehran repeatedly hailed as a symbol of the accord's success.

EU leaders at a summit in the Bulgarian capital of Sofia late on May 16 reaffirmed their commitment to trying to keep the landmark 2015 agreement alive and protecting European companies doing business in Iran.

"The risks of being on the wrong side of the US government are not worth the benefits of trading with Iran once the sanctions are in place", said Jason Gammel, a London-based analyst at Jefferies LLC.

Total will pull out of a multibillion-dollar gas project in Iran if it can not secure a waiver from US sanctions, the French energy company said on Wednesday.

Gas Market Report is the leading news source on the gas industry markets, delivering vital first-of-the-month gas prices for more than 40 pipeline locations and a number of key market centers.

In an ironic twist, Trump's decision to threaten European companies that continue to invest in Iran may open the door to Chinese rivals.

In announcing his withdrawal from the deal, Trump warned companies that they face sanctions if they do business with Iran.

Iran did not immediately comment on Total's announcement.

More news: Florida trainer investigated after animals allegedly drowned in school

The announcement shows how European companies are starting to take matters into their own hands as their leaders struggle to save an worldwide nuclear deal with Iran after the United States withdrew and said it would reinstate sanctions on Tehran. "It's a way to give businesses a chance to get out".

"Total has always been clear that it can not afford to be exposed to any secondary sanction, which might include the loss of financing in dollars by U.S. banks for its worldwide operations, the loss of its USA shareholders or the inability to continue its United States operations", Total said in a statement.

In a statement yesterday, it said: "Total will not continue the SP11 (South Pars 11) project and will have to unwind all related operations before November 4, 2018, unless Total is granted a specific project waiver by United States authorities with the support..." The U.S. Treasury has given companies up to 180 days to end dealings with Iran.

Withdrawing from the South Pars 11 project will also not affect Total's target to raise the company's production by 5 percent a year between 2016 and 2022, according to the statement.

Total's position shows how hard it will be for European powers to safeguard their interests inIran and offer guarantees to save the nuclear deal.

But Mogherini said the European Union would make every effort to maintain business ties with Tehran and ensure that Tehran can continue to sell its oil around the world. Officials in China and Russian Federation have indicated they will resist U.S. sanctions and capitalize on the void created if European companies withdraw from the Iranian market.

Iranian oil minister Bijan Zanganeh said the French firm would not pay a penalty if it pulled out of the project.

Related Articles

  • Tencent shares rise after Q1 profit beats

    Tencent shares rise after Q1 profit beats

    Tencent's gaming business has historically done well, with the PC games segment being the company's cash cow for a long time. But adjusted earnings-per-share, which strips out one-time items, came to 1.92 yuan, missing the 1.94 yuan average estimate.
    Whitney Houston Documentary Shocks Audience at Cannes With Child Abuse Revelation

    Whitney Houston Documentary Shocks Audience at Cannes With Child Abuse Revelation

    Other moments show Whitney Houston exhibiting some diva-like behavior, particularly when she shades fellow recording artist, Paula Abdul .
    IPL 2018: MI vs KXIP Preview

    IPL 2018: MI vs KXIP Preview

    On Wednesday, MI host Kings XI Punjab in a virtual knockout game at the Wankhede Stadium in Mumbai in match 50 of VIVO IPL 2018 . What Mumbai Indians needs to do: On May 20, it plays Delhi Daredevils , a team which is out of the race for the playoffs.
  • Mother charged with 9 felony counts in child abuse case

    Mother charged with 9 felony counts in child abuse case

    Rogers said she homeschooled the children, but there is no record she registered with the state as required by law. Denying all allegations, Jonathan Allen claimed he's a peaceful man who is the "Indiana Jones of spirituality".
    Unknown source ramps up ozone-destroying CFC production

    Unknown source ramps up ozone-destroying CFC production

    It is possible that the increased emissions could be due to older buildings being demolished, but that doesn't seem to be the case.
    Congo warns of

    Congo warns of "new phase" in Ebola outbreak after first urban case

    The outbreak is centred around the remote town of Bikoro in the province of Equateur, which has 31 of the cases and 274 contacts. Patta also reports that a crucial difference between the two outbreaks is the speed at which worldwide agencies have responded.
  • Karolina Pliskova smashes umpire's chair after losing Rome match

    Karolina Pliskova smashes umpire's chair after losing Rome match

    The world number six had a number of run-ins with Mrozinska during the heated encounter and now faces a heavy fine from the WTA. However, the line-judge deemed the ball to be out, and this decision was not over-ruled by umpire Marta Mrozinska.
    Ford resuming production of lucrative F-Series trucks on Friday

    Ford resuming production of lucrative F-Series trucks on Friday

    In between, the Ford team received a United Kingdom import license for the die - a mere two hours before the plane touched down. Ford stopped making the big pickup trucks at KTP on May 5 following a fire at a supplier plant in MI .
    'Come and take it'

    'Come and take it'

    Those students were killed when guardsmen fired during a mass protest at the school's campus against the USA bombing of Cambodia. The university prohibits students, faculty, and staff from arming themselves with "deadly weapons", according to its website .
  • 25-year-old posing as high school basketball star arrested

    25-year-old posing as high school basketball star arrested

    To fans of Hillcrest High's varsity basketball team, its new star player must have seemed like a gift from above. Gilstrap-Portley saw this as an opportunity to dust off his sneakers and hit the hardwood like it was 2011.
    5 reasons why Neymar should join Manchester United and not Real Madrid

    5 reasons why Neymar should join Manchester United and not Real Madrid

    Brazil has been formed in Group-E with Costa Rica, Serbia and Switzerland. Brazil are aiming to add a sixth star on their shirts.
    President Trump to discuss sanctuary laws with California leaders

    President Trump to discuss sanctuary laws with California leaders

    The topic is immigration and California's resistance to the Trump administration's hard-line policies. "These aren't people. Dianne Feinstein (D., Calif.) from the left, fired back. "We have to break up families", Trump said on Wednesday.