Trump’s policy jeopardizes a multi-billion-dollar contract to develop the Iranian South Pars field

Almaty. November 15. Silkroadnews – Trump’s policy jeopardizes the multibillion-dollar contract for the development of the Iranian South Pars field, the Iranian Telegraph Agency (IrTAG) reported referring to CNN channel.
“President Trump’s get-tough approach to Iran could kill a huge energy investment signed just four months ago. Under the deal, Total (TOT) and China’s CNPC agreed to invest billions of dollars in Iran to develop the giant South Pars gas field in partnership with Iran’s Petropars,” the report said.
The investment in case are noted to be the first of such kind after lifting of sanctions against Iran in 2016.
Last month Trump presented a tough and comprehensive new policy towards Iran. He accused Tehran of violating the nuclear deal and announced that lifting the sanctions was not in the interests of the United States.
Currently, the agreement to develop the field is in limbo, while the U.S. Congress decides how to respond to Trump’s statements. The U.S. president’s strategy creates a risk of setting a chain of events that could inevitably lead to a breakdown of the nuclear agreement.
According to Total CEO Patrick Pouyanné, if new sanctions are imposed on Iran, the agreement will have to be reviewed. He also added the company has just acquired more assets in the U.S.
“Total last week increased its U.S. presence with the purchase of a portfolio of liquified natural gas assets from Engie (ENGIY), including the company’s stake in the Cameron LNG project in Louisiana, one of the first new gas export terminals in North America,” CNN reports.
Pouyanné also noted Total has already started working over a project in Iran.
“We are working on the project. We launched the tenders, we should award... contracts by January. I hope by that time, Congress will have an answer for the president and the president will have to renew, or not [renew], the certification,” he said.
For Iran losing Total from the project would mean a huge blow. Tehran needs foreign investments to develop its vast energy potential, and has recently planned projects worth $200 billion, hoping to attract such companies as British BP, Russian Gazprom and Petronas from Malaysia.