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Total set to sign $4.8bn gas deal with Iran - reports | Total set to sign $4.8bn gas deal with Iran - reports |
(35 minutes later) | |
French oil and gas company Total S.A. has agreed a $4.8 billion deal with Iran to develop one of the world’s largest largest natural gas fields, reports AFP. | |
The country’s oil ministry announced the deal Sunday. | |
READ MORE: Iran to finalize gas development deal with Total | |
It is Iran’s first investment by an international energy company since sanctions were eased last year after reaching an international agreement to slow the development of its nuclear program, reports Bloomberg. | |
The contract is to develop part of the South Pars gas field in the Persian Gulf. | |
Iran’s Petroleum Minister Bijan Zanganeh said last month that the deal was in its final stage and would be signed within the coming weeks, Press TV reported. | |
Total Chief Executive Patrick Pouyanne has previously said it was worth the company taking the billion dollar risk of future sanction restrictions being imposed “because [the deal] opens a huge market”. | |
READ MORE: ‘Scorpion & frog’: Haley uses fable to blast Iran as UN & EU say Tehran complies with nuclear deal | |
Washington has warned that it would cancel the sanctions waivers if Tehran didn’t amend its nuclear program to the limits set out in the international deal. | |
“We are perfectly conscious of some risks,” Pouyanne told Reuters. | |
“We have taken into account [sanction] snap-backs, we have to take into account regulation changes," he added. "We have to live with some uncertainty." | |
Total is heading an international consortium with Chinese company CNPCI to develop the gas field. The deal will be signed Monday, a ministry spokesperson told AFP. |
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