May 16, 2018

Total halts $2 billion gas project in Iran

French oil giant Total is preparing to pull out of Iran to avoid risking US sanctions.

The company said on Wednesday that it was unable to proceed with a $2 billion project to develop the country's giant South Pars gas field.

In a statement, Total said it "will have to unwind all related operations" before November 4, unless it's granted a specific waiver by US authorities that would protect it against secondary sanctions.

The company said it had spent less than €40 million ($47 million) on the project so far.

In a deal signed in late 2016, Total agreed to operate the South Pars project with a stake of 50.1%. Its partners in the project are Chinese state oil company CNPC, and Iran's Petropars.

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