Total poised to pull out of Iran's SP11 project without U.S. waiver

Share
Total poised to pull out of Iran's SP11 project without U.S. waiver

French oil giant Total is preparing to pull out of Iran to avoid risking USA sanctions.

Total was the furthest advanced of its European oil major peers in a cautious feeling out of upstream opportunities in Iran since the easing of worldwide sanctions at the start of 2016.

Trump's decision to withdraw from the 2015 nuclear deal with Iran risks exposing European countries that have since invested in Iran to renewed United States sanctions, after "wind-down" periods of three to six months expire.

As a effect, "Complete is not going to be able to proceed the SP11 challenge and should unwind all related operations earlier than four November 2018 except Complete is granted a selected challenge waiver by the U.S. authorities with the assist of the French and European authorities", the French firm mentioned in a press release.

The group said it has $10 billion of capital employed in its United States assets, and USA banks are involved in 90 percent of its financing operations, making Total highly vulnerable if targeted by any U.S. actions.

South Pars phase 11 development is aimed initially at domestic gas demand.

Total also confirmed it is lobbying authorities in both Paris and Washington for a waiver to the U.S. sanctions which are due to come into effect November 5.

Total signed a contract in 2017 to develop phase 11 of Iran's South Pars field with an initial investment of $1 billion, marking the first major Western energy investment in the country after sanctions were lifted in 2016. Its partners in the project are Chinese state oil company CNPC, and Iran's Petropars.

Determined to keep the accord alive, European leaders need to find a way to assure companies that their investments are beyond Washington's extra-territorial reach.

A gas flare on an Iranian oil production platform. Joe Kaesar, the CEO of Germany's Siemens, told CNN his company would not be able to do any new business with Tehran. But the reach of the US financial system, the dominance of the dollar and the presence of European companies' operations in the United States all weaken any potential EU counter-measures. "They have us by the throat because so much business is conducted and cleared in dollars", one European investment banker said. "With that in mind it's a logical decision", a European diplomat said of Total's decision.

Share

Advertisement

Related Posts

ZTE Is Among Samsung's Plans To Expand Exynos Processor Sales
Given product development lifecycles, that would mean a new third-party Exynos phone is already under development. Samsung's System LSI business saw a 27 percent rise in shipments past year , Counterpoint says.

Autopsy shows exploding vape pen, not fire, killed St. Pete man
Wilder told ABC Action News that he, as well as many other local store owners, won't sell unregulated e-cigarettes. According to FEMA, the 38-year-old's death is the first in the U.S. to be caused by a vaping pen.

Kim Kardashian deletes appetite suppressant product post after backlash
On Wednesday, the 37-year-old reality star and mogul posted an Instagram promoting Flat Tummy appetite-suppressing lollipops. Despite Kardashian deleting the post, screenshots of the controversial ad made the rounds on social media Thursday.

Former student in custody after shooting at Dixon High School
During a chase, the shooter fired several shots at the resource officer who then returned fire, hitting the shooter. The officer, whose name was not released, is on paid administrative leave, per policy, police said.

Russian Federation meddled with goal of helping Trump, Senate Intel Committee says
The allegations, and multiple investigations into the matter, have shadowed the first 16 months of Trump's presidency. That offer does not appear to have translated into an actual digital campaign.

WWE superstar Ronda Rousey will be pregnant Soon
But now that she's been married to Travis Browne for nearly a year, it's clear procreation's on the brain. TMZ caught up with her in NYC, and planted the question of parenthood on her without trepidation.

EA Officially Announces Battlefield V, Live Reveal Next Week
For instance, a report from several months ago has pointed toward the likelihood of the title being set during World War II . The game was officially revealed to have a single-player campaign in addition to multiple maps and modes for multiplayer.

Summiting Sherpas Set Pair of Mount Everest Records
The US-based Lhakpa has repeatedly broken her own record for the most Everest summits by a woman. Mr Kami Rita first reached the top of Everest in 1994 when working for a commercial expedition.

European Union leader lights into Trump: 'With friends like that, who needs enemies?'
Mr Tusk said he wanted the 28 leaders over the next 24 hours to reconfirm that the European Union would stick to the deal as long as Iran did.

Kerala Tourism department's cheeky take on Karnataka's impending resort politics?
Till the filing of the story on Tuesday the tweet had got 5515 retweets and 9041 likes. Keeping that in mind, neighbouring state Kerala took a dig at MLAs from Karnataka.

© 2015 ExpressNewsline. All Rights reserved.