Total CEO: The likelihood of exemption from U.S. sanctions against Iran is very low

The CEO of the French company Total has stated that the likelihood of the U.S. exempting the company from economic sanctions related to the continuation of the South Pars project in Iran is very low. This major oil and gas company had previously warned that if it does not receive an exemption from the U.S., it will halt the implementation of Phase 11 of the South Pars project, which it began last summer. The U.S. withdrawal from the nuclear agreement with Iran has created many uncertainties for foreign investments in Iran, as Washington has warned foreign companies that they will face sanctions if they continue their cooperation with Iran. Last month, Total announced that it has about $10 billion invested in the U.S., and that American banks finance about 90% of the costs of its projects, making Total heavily dependent on the U.S. Iran, seeing continued cooperation with Total as very difficult, has given the French company a two-month deadline to negotiate with the U.S. and decide whether it will remain in Iran. The Iranian oil minister has also stated that if Total exits the country, the China National Petroleum Corporation will replace it. However, Patrick Pouyanné, CEO of Total, said on Friday that the chance of receiving an exemption from the U.S. is very slim. He also assured that if Total is forced to withdraw from this project, it will resume its activities in Iran in the future. Previously, the Russian company Lukoil, which is the second-largest oil company in Russia, had also announced that due to concerns over the return of U.S. sanctions, it currently does not intend to pursue projects related to Iran. Additionally, the South Korean company Daelim Industrial has reported that it has canceled its $2 billion contract with Iran related to the Isfahan refinery development project.