Total is having difficulty unloading its stake in a $US5 billion natural-gas project in Iran to a Chinese partner, after stopping work on the project earlier this year due to US sanctions.
Iranian Oil Minister Bijan Zanganeh confirmed on Monday the French oil giant had left the project in the South Pars natural-gas field. Total had flagged in May it planned to do so, ahead of a November 4 deadline to divest itself from its stake in the project to comply with sanctions.
The French company has concluded in recent weeks that it was unlikely to receive a US exemption from sanctions, according to a Total staffer.
“I think it’s over,” the person said. “Now, how do we exit?”
Total is holding talks to transfer its 50.1 per cent stake to state-owned China National Petroleum Corp, which holds 30 per cent in the development. China has said it plans not to follow US sanctions on Iran.
Total doesn’t expect to sell its stake to CNPC, but wants to be compensated for about $US50 million it has spent on the project, a source said.
Read the article in The Australian.