Total to forfeit investment if it pulls out of South Pars contract, Tehran warns

Iranian oil minister Bijan Zanganeh French energy giant Total will lose the $66m it has already committed to the development of phase 11 of Iran’s South Pars gas field if it pulls out of the deal under pressure from the the US, the Iranian oil minister Bijan Zanganeh warned last week. “If Total, without the enforcement of the UN Security Council’s sanctions, announces that it has the intention to leave the contract, no capital will be returned … and no sum will be transferred to the company,” he said, in response to the earlier announcement from Chief Executive Patrick Pouyanne that, given the extent of Total’s exposure to the US market, it would have to review its involvement in the project if the US decides to impose further unilateral sanctions on Tehran over its nuclear program.
South ParsThe minister’s remarks raise the stakes for the French company, with the US Congress expected to decide within about a month whether to reinstate sanctions on Iran after President Donald Trump refused to formally certify that Tehran was complying with its nuclear deal; in July, 
Total signed a deal with Tehran to develop phase 11 of Iran’s South Pars field with an initial investment of $1bn marking the first major Western energy investment in the Islamic Republic since the lifting of sanctions. According to Zanganeh, Total has so far pledged $66m for the South Pars project and work was progressing as specified in the contract.
 

Source: isna