News ID: 231045
Published: 0257 GMT September 08, 2018

Minister: Total to be refunded once SP Phase 11 operational

Minister: Total to be refunded once SP Phase 11 operational

Iran will reimburse French oil and gas major Total for its investment in the South Pars Gas Field but not until Phase 11 of the multibillion-dollar project becomes operational, said Iran's oil minister on Saturday.

According to Shana, Bijan Namdar Zanganeh said, "Total is not supposed to pay a sum as a penalty to Iran, but the money that this company has invested in Phase 11 of South Pars until now will not be reimbursed until the time of operation and production."

Total signed a contract in 2017 to develop Phase 11 of the field with an initial investment of $1 billion, but it pulled out of the project in late August after failing to obtain a waiver from reinstated US sanctions on Tehran.

In May, when Total said it would pull out of the project unless it secured a sanctions waiver, the company said it had so far spent less than €40 million on the project and withdrawing would not impact its production growth targets.

   
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