China’s CNPC reportedly might take Total’s stake in Iranian South Pars investment if French pull out

By bne IntelliNews December 17, 2017

Top Chinese oil and gas company CNPC is considering taking over the 50.1% stake held by French energy major Total in a multi-billion dollar deal to develop part of the giant South Pars gas field if the latter departs Iran to adhere to any new US sanctions, industry sources told Reuters on December 15.

In July, in what was seen as a breakthrough for Iran in attracting foreign investment since the dropping of crippling sanctions with the start of the nuclear deal 19 months previoulsy, Total agreed to put in an initial $1bn to develop South Pars Phase 11. The contract gave CNPC the option to take over Total’s stake if it pulled out, sources involved in the talks reportedly told the news service.

In signing the deal, Total became the first Western energy major to commit to an investment in the post-nuclear sanctions Islamic Republic. After the signing, it also held out the prospect of committing to big petrochemical projects in the country.

But with US President Donald Trump possibly set in January to introduce moves that could wreck the nuclear deal, Total has become anxious that its assets stateside could in the near future become exposed to sanctions should it continue with its investment in Iran.

CNPC has a 30% stake in the phase 11 project, while the Iranian national oil company’s subsidiary PetroPars holds the remaining 19.9%.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

$5.8bn Iran Mall to save troubled bank

Officials from Iran's Judiciary announced the country's largest shopping centre, Iran Mall, is worth IRR3.5 trillion ($5.8bn), ISNA reported on April 8. Iran Mall is globally ... more

Bank Melli Iran allowed to resume Iraq operations

Bank Melli Iran (BMI) has been given the go-ahead to resume its operations in Iraq by the Central Bank of Iraq, as reported by IBENA on February 9. This decision comes after a temporary suspension of ... more

Iran, Uzbekistan set to sign transport cooperation agreement soon

Iran and Uzbekistan plan to sign a comprehensive transport cooperation document in the near future, according to Iran's Minister of Roads and Urban Development Mehrdad Bazrpash, IRIB News reported on ... more

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    6 days ago
  2. Saudi Arabia to scale back plans for Neom city
    9 days ago
  3. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    6 days ago
  4. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  5. Russia’s war economy boosted by rising oil prices
    3 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    20 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    24 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    29 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    22 days ago

Reports

Dismiss