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%.

Related Articles

Hundred top Iranian officials have US green cards hardline MP claims

Hardline Iranian MP Ali Haji-Deligani said on January 16 that more than 100 of Iran’s top officials are holders of US permanent residency green cards, Tasnim News Agency reported. Various ... more

Rouhani failing to make real impact in challenging Iran's repressive regime Freedom House says

Iran’s self-proclaimed centrist President Hassan Rouhani has failed to effectively challenge repressive elements in the Islamic Republic’s regime since he was re-elected with a landslide in May ... more

High egg prices at heart of initial Iran protests cut by government

Egg prices in Iran—a key point of contention in the anger over food prices said to have driven the original protests that set off the nationwide wave of Iranian demonstrations over the new year ... more

Dismiss