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Total warned that would have to withdraw from the huge project in Iran

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The French oil giant Total warned that would have to withdraw from the huge project to develop the Iranian gas field South Pars if did not get an exception to the American sanctions against Tehran. The company said it was negotiating with the French and US authorities as an exception to the sanction regime for the project, which is among the largest European investments since lifting the sanctions against Iran under the 2015 nuclear agreement. Its first phase is estimated at 2 billion USD.
Total points out that it has always been clear that can not afford to be subject to any secondary sanctions. The company notes the participation of US banks in 90 % of its financial operations and the possible loss of 30% of US-based shareholders.
The non-refundable costs are still small, with only 40 million EUR spent on the project to provide gas for Iran’s domestic market.
South Pars is the largest gas field in the world. Its reserves are valued at 13.8 trillion cbm. Since the end of the last century, Iran has been phasing out the deposit, dividing its territory into 28 stages.