Iran: Total oil company has 60 days to secure US sanctions waiver

Latest news

    Trump warned that foreign companies doing business in Iran could also face punitive measures by the US [File: AP]

    The French energy company Total has two months to secure an exemption from US sanctions, if it wants to remain as an investor in Iran’s offshore gas exploration, Iran’s oil minister said.

    Bijam Namdar Zanganeh said the state-owned China National Petroleum Corporation (CNPC) would take over, if the US Department of Treasury failed to issue a waiver for Total.

    Iran’s leader to Europe: Fulfill demands or nuclear deal’s dead

    “During these 60 days, the French government can negotiate with the US government over the fate of Total’s investment in Iran,” the Tehran-based Mehr news agency quoted Zanganeh as saying on Wednesday. 

    On May 16, Total announced that it could pull out its investment from the South Pars gas field if it cannot secure a waiver from the US government.

    US secondary sanctions against Iran are expected to snap back, after President Donald Trump declared the withdrawal from the 2015 nuclear deal.

    Trump also warned that even foreign companies doing business in Iran could face punitive measures in the US.

    That includes Total, which signed a deal to invest more than $2bn in Iran in July 2017.

    CNPC owns an estimated 30 percent of the project, while the rest is owned by Iran’s Petropars. If completed, the project would have generated 56 million cubic metres of natural gas per day, according to Iran’s Financial Tribune.

    Total is a publicly listed company in the New York Stock Exchange, and its revenue in 2017 was reported at $171.5bn.

    What if Iran does not comply with US demands?

    The latest development on Total comes as Russia’s second oil producer, Lukoil, announced on Tuesday that it was putting its plan to invest in Iran on hold due to the threats of US sanctions.

    “Considering the latest developments, I guess, it’s too early to say what our plans (about Iran) will be. For the moment, basically, we have everything on hold,” a company official was quoted by Reuters as saying. 

    Russia is one of Iran’s closest allies.

    European powers still see the nuclear accord as the best chance of stopping Tehran from acquiring a nuclear weapon and have intensified efforts to save the pact.

    Zanganeh also said on state television that an agreement with Europe would inspire other potential buyers of Iranian oil.

    “Europe is buying only one third of Iranian oil, but an agreement with Europe is important to guarantee our sales, and find insurance for the ships ferrying the crude. Other buyers would also be inspired by this,” he said.

    View the original article:

    SOURCE: Al Jazeera and news agencies

    In the same category are

    Nigeria: Boko Haram executes second female aid worker Nigerian military has been struggling to contain the activities of the Boko Haram A second aid worker has been executed by Boko Haram in Nigeria af...
    Sri Lanka’s Sanath Jayasuriya faces ICC corruption charges Sanath Jayasuriya played international cricket from 1989-2011 Sri Lanka's former cricket captain Sanath Jayasuriya has been charged with two counts...
    Greek official blows the whistle on refugee costs The European Commission has allocated $1.8bn to Greece for migration-related costs for the 2014-2020 period A senior Greek official has described t...
    Turkish prosecutors ‘find evidence of Jamal Khashoggi killing’ Turkish investigators entered Saudi consulate as part of a joint inspection of building on Monday Turkish authorities say prosecutors have found ev...
    US midterms ads accuse Democrats of ‘terror’ ties A recent Duncan Hunter campaign ad has attacked his Democratic challenger's Palestinian background Correction 15/10/2018: This article has been corr...
    Microsoft co-founder Paul Allen dies at the age of 65 Allen was the Seattle Seahawks team owner, a philanthropist, investor, innovator and Microsoft co-founder Billionaire Paul Allen, who founded US so...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.