Total given two months to secure Iran sanctions waver

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Iran has given French energy firm Total 60 days to seek a waiver from US sanctions over its stake in a major gas project in the Persian Gulf.

Talking to state media Shana on Wednesday, Petroleum Minister Bijan Namdar Zanganeh warned Total it would be replaced in the project by China National Petroleum Corporation (CNPC) if it failed to negotiate approval with the White House.

Zanganeh added that the French government could lend its support in lobbying for a waiver.

The South Pars 11 (SP11) development project was agreed in July 2017, with Total putting in an initial investment of one billion US dollars for a 50.1-percent stake.

The CNPC negotiated a 30-percent stake, with the rest of the project backed by Iran’s Petropars.

According to Zanganeh, if Total was forced to walk away from SP11, the CNPC would take over its stake and have an 80.1-percent share in the project.

November 19, 2015: A unit of South Pars Gas field in Asalouyeh Seaport, north of Persian Gulf, Iran. /VCG Photo

SP11 covers part of the world’s largest reserve of natural gas, with the project set to produce an estimated 400,000 barrels of oil a day when completed.

The entire South Pars/North Dome gas field is split between Iran and Qatar in the Persian Gulf, and is by far the biggest natural gas field in the world.

According to Reuters, the reserves in the field could be worth as much as 2.9 trillion US dollars.

The US decision to reverse the Iran nuclear deal earlier this month saw sanctions re-imposed on the country, despite strong opposition from the other signatories of the deal, including France and China.

Donald Trump has warned foreign companies that continue to do business with Iran to expect punitive measures from the US, a threat which on Tuesday saw Russian oil producer Lukoil announce it was pulling out of planned investments in Iran.