Total to leave all equipment, investment in Iran

TEHRAN, Aug. 28 (MNA) – Spokesperson for the Energy Commission said Tue. that all equipment and investment by Total in developing Iran’s South Pars project will remain in the country despite the French energy giant’s exit.

Asadollah Gharehkhani, Spokesperson for the Energy Commission at Iran’s Parliament, said Total terminated a contract to develop Phase 11 of Iran’s South Pars energy hub because the French energy giant started to feel that its continued presence in Iran would deal great damage to the company.

Asked whether necessary guarantees have been taken in case of Total’s exit from Iran, he said “the contract between Iran and Total included a paragraph that indicated in case of Total’s exit from the project, CNPC would replace the French company. This was in a sense an executive guarantee.”

“All costs and equipment invested by Total [in South Pars project] will remain in Iran, and there has been no contract on returning any of them,” he stressed.

“Iran has given no guarantee to Total, either from the banking, public or private sector, that would allow the French company to ask for the return of its equipment and investment,” he added.

Iran’s Petroleum Minister Bijan Zanganeh announced on Aug. 20 that French energy giant Total has officially left the country due to US extraterritorial sanctions, thus terminating its contract to develop Phase 11 of Iran’s South Pars energy hub.

China’s state-owned energy major CNPC has been said to take over Total’s stake in the South Pars project.

Total had been forced to abandon the South Pars project once before in 2012, when France backed US sanctions, including an oil embargo, against Iran.

MS/4387410

News Code 137211

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