Total SA has announced it will not go ahead with its South Pars Gas Project (SP11) unless it is granted a specific project waiver by the United States, along with support of the French and European authorities, The French major said in a Wednesday press release.
Continuing to do business in Iran would be too great a risk as the company has large operations in the USA and depends on the country's banks for financing its operations, Total (tot) said in a statement Wednesday. Zanganeh noted that the country will definitely overcome the difficulties that result from the United States withdrawal from the nuclear deal.
But Total's announcement and similar ones by German insurance giant Allianz and Danish tanker giant Maersk earlier this week illustrate the major obstacles they face trying to overcome renewed USA sanctions on Iran.
South Pars phase 11 development is aimed initially at domestic gas demand.
EU leaders at a summit in the Bulgarian capital of Sofia late on May 16 reaffirmed their commitment to trying to keep the landmark 2015 agreement alive and protecting European companies doing business in Iran.
Sunk costs for Total as relates to its 50.1 percent stake in the project amount to roughly 40 million euros, according to its press release, but previous reports are that Total has sunk about $90 million into South Pars.
U.S. President Donald Trump said last week he intends to pull out of an worldwide accord curbing Iran's nuclear program. Joe Kaesar, the CEO of Germany's Siemens, told CNN his company would not be able to do any new business with Tehran.
"Total will not be in a position to continue the SP11 project and will have to unwind all related operations before November 4, 2018 unless Total is granted a specific project waiver by the USA authorities with the support of the French and European authorities", the statement said. Total does about 30 percent of its business through the U.S. banking system.
Repoll in 568 booths for Bengal rural polls today
Almost 71,000 security personnel from West Bengal and neighbouring states were deployed for the panchayat polls, News 18 reported. This time, sources said the results of gram panchayats could be out by noon on Thursday and those of panchayat samitis by 4pm.
"The fines are in the multibillions these days so it's just not worth the risk for a small piece of business and maybe pleasing a (European) government".
Germany, France and the United Kingdom have vowed to stick with the nuclear deal and they're talking to Iranian officials about how to protect the economic benefits it offered Tehran.
An official in the French finance ministry said "precise requests" were being lodged with the USA authorities, including for Total, and that the company's decision was not a surprise.
In an unintended twist, U.S. President Donald Trump's decision to threaten European companies that continue to invest in Iran may open the door to Chinese rivals.
Decision on KM Joseph deferred
It had also chose to consider the names of other High Court judges for elevation as judges of the Supreme Court. The collegium meeting was scheduled to discuss in detail the High Court probables for the Supreme Court.
Total called for a waiver that would stipulate the company's protection from "any secondary sanction as per USA legislation".
The total project, which also involves China 's CNPC and Iranian company Petropars, is estimated to be around $2 billion for the first phase.
Tesla Model S involved in another Autopilot accident
During this "drive cycle", the Model S registered "more than a dozen instances of her hands being off the steering wheel". Police say the auto smashed into a stationary firetruck at around 100km/h, leaving the driver with a broken right ankle.