News ID: 219756
Published: 0323 GMT August 12, 2018

Iran says Total not withdrawn from SP Phase 11 yet

Iran says Total not withdrawn from SP Phase 11 yet

Iran said French energy giant Total is still to officially announce its withdrawal from one of the country's biggest gas projects with a top official saying no change has taken place in the combination of a consortium formed over the project.

Mohammad Mostafavi, the head of investment and business affairs of the National Iranian Oil Company (NIOC), was quoted by Press TV as saying that the terms of the contract with Total, China's CNPC and Iran's Petropars on developing Phase 11 of South Pars had no changed yet.

In July 2017, the NIOC awarded the project to the trio as part of a contract worth around $4 billion.

Total — with a leading share of 50.1 percent in the development of Phase 11 — had earlier announced it would withdraw from the project once the US restores the sanctions against Iran.

Earlier this month, US President Donald Trump signed an executive order making the sanctions against Iran effective.

The sanctions would in the first wave prevent Iran's access to the US dollar among other restrictions. The second wave that would come in November would ban investments in Iran's oil and gas projects.

Following Total's announcement, speculations emerged that CNPC would replace the French company in leading the project with a revised share of 80 percent.

This is while Mostafavi said that the distribution of the shares of the consortium still remained unchanged.

"The roles of each consortium member over the development of Phase 11 are based on the contract and Total has not officially withdrawn from it so as to create any changes," he told Shana.

Total has not said what it would do with its 50.1 percent stake should it pull out, and it has until Nov. 4 to wind down its Iran operations, wrote Reuters in a report on the developing the project.

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