Total to sign Iran gas deal and biggest since sanctions lifted

Monday 03 July 2017 2 months ago 44   Paris    Print

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Report  Web Desk : PARIS: French energy giant Total will finally sign its multi-billion-dollar agreement to develop an Iranian offshore gas field today on Monday, the oil ministry said, in the biggest foreign deal since sanctions were eased last year. "he international agreement for the development of phase 11 of South Pars will be signed on Monday in the presence of the oil ministry and managers of Total, the Chinese company CNPC and Iranian company Petropars, a ministry spokesman told. Total signed a preliminary deal with Iran in November, taking a 50.1 percent stake in the $4.8 billion (4.2 billion euro) project. China National Petroleum Corporation (CNPC) will own 30 percent and Petropars 19.9 percent. Total will put in an initial $1 billion for the first stage of the 20-year project. It was initially due to sign the contract in early 2017, but CEO Patrick Pouyanne said in February that it would wait to see whether the US administration of President Donald Trump reimposed sanctions on Iran. Trump threatened during his campaign to tear up the landmark accord between Iran and six world powers that came into force in January 2016 and eased sanctions in exchange for curbs to Tehran nuclear programme. His administration has taken a tough line on Iran and imposed fresh sanctions related to its ballistic missile programme and military activities in the region. But the White House has kept the nuclear deal alive, continuing to waive the relevant sanctions every few months as required under the agreement. It is in the midst of a 90-day review on whether to stick with the nuclear deal, although any move to abandon it will be strongly opposed by the other signatories Britain, France, Germany, China and Russia. (01)