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Total withdraws from gas project in Iran

UNITED STATES (OBSERVATORY) –┬áTotal, France’s largest energy company, is withdrawing from the $ 4.8 billion Iranian gas field development project, recognizing it as extremely dangerous because of the threat of US sanctions.

This was stated by Iranian Oil Minister Bijan Namdar Zanganeh to the information portal ICANA. According to him, Iran will look for an alternative to Total.

According to German Wave, the French group was one of three significant energy companies, designed to help develop South Pars, the world’s largest natural gas field, dividing Iran and Qatar.

Total was to invest the first billion euros in the gas field project, to which the French company joined in July 2017 together with the state Chinese National Petroleum Corporation (CNPC) and the Iranian Petropars. Total also admitted that it was “extremely vulnerable” to US sanctions. The company has about $ 10 billion in its US assets, while 90% of its financial transactions pass through US banks.

Earlier, having withdrawn from the nuclear agreement with Iran from 2015, the White House said that in August and November the US will impose sanctions on Iran in two stages.

The second stage of sanctions will be aimed at the vital oil and gas sector of the country, and any firm that conducts business with Iran may face penalties in the United States.