Total cannot withdraw capital from gas deal with Iran: Min.

SHANA — Iranian Minister of Petroleum Bijan Zangeneh says Total S.A.’s capital in a contract with Tehran to develop Phase 11 of the South Pars Gas Field will stay in Iran in case the French energy major walks away from the deal without any UNSC sanctions.

The official said: “If Total walks away from the deal without United Nations Security Council imposing new international sanctions against Iran, no capital will be paid to the company by Iran.”

The works concerning development of phase 11 of the supergiant South Pars Gas Field by a consortium of Total, CNPCI and Petropars are being carried out according to the schedule, Zangeneh said on Tuesday.

Total has so far promised investment of €56m in the project and is acting accordingly to supply the amount in the project, but the remarks of Total’s managing director are not properly translated, the official added.

“If the UNSC imposes sanctions on Tehran, the company may decide to abandon the deal with Iran,” he said.

In case Total leaves the deal, its share will be taken by the other two members of the consortium and Total’s capital will stay in Iran and will be repaid once operation of the project begins, he added.

Bijan Zangeneh addressed the Iranian parliament’s energy committee regarding the gas deal with a consortium of Total, CNPCI and Petropars for developing phase 11 of the South Pars gas field.

Total CEO Patrick Pouyanne said last week that his company will try to push ahead with the South Pars project if the US decides to impose unilateral sanctions, adding that Total will comply with any law that obliges it to withdraw from Iran.

Total, one of the world’s seven supermajors, signed a $4.8 billion contract in July to develop Phase 11 of the giant South Pars Gas Field that is shared between Iran and Qatar in the Persian Gulf.

The French oil and gas company will collaborate with China National Petroleum Corp and Iran’s state-owned firm Petropars to produce 2 billion cubic feet, or 56 million cubic meters per day of natural gas from SP Phase 11.