Iran Sets Deadline for Total

Iran has told French major Total it has only two months to get a waiver from US and return to developing the South Pars phase 11 gas project.

A Total-led consortium signed a $4.8bn contract with Iran to develop the giant gas field. However a week after the US withdrew from the Iran nuclear deal on May 8, Total said on May 16 it would pull out of SP11 in the absence of a waiver from the US. The French major agreed to develop the project in July 2017 alongside partner PetroChina.

Iran’s oil minister Bijan Zanganeh said May 29 that, in the event that  Total fails to get an exemption (waiver) from US sanctions within 60 days, its shares will be transferred to CNPC. Total and CNPC have respectively 50.1% and 30% stakes in the project; remaining shares belong to the local PetroPars company.

As of now, Total has spent €40mn on studies and preparing tenders for subcontractors. That figure will be returned to Total gradually only after completion of project, and without any profit.

Recently, Reuters cited several sources saying that Chinese state-owned CNPC – PetroChina's owner – is willing to take Total’s shares, although CNPC has not officially confirmed that.