Iran says China group ready to replace Total on gas deal
TEHRAN - Agence France-Presse
Chinese state-owned oil company CNPC will replace Total on a major gas field project in Iran if the French energy giant pulls out over renewed U.S. sanctions against Tehran, Iran’s oil minister has said.
“Total has said that if it doesn’t get an exemption from the United States to continue its work, it will begin to pull out of the deal,” Bijan Namdar Zanganeh was quoted as saying by his ministry’s Shana news service on May 16.
But earlier this month, U.S. President Donald Trump announced his withdrawal from the deal, and warned companies that they face sanctions if they do business with Iran.
The French group said on May 16 it has $10 billion of capital employed in its U.S. assets, and U.S. banks are involved in 90 percent of its financing operations, making Total highly vulnerable if targeted by any U.S. actions.
By contrast, Total said it had spent less than 40 million euros ($47 million) on the Iranian project, which it runs with its partner Petrochina and which is dedicated to the supply of domestic gas inside Iran.