France’s oil and gas major Total is withholding decision on a $4.8 billion development of the world’s largest gas field in Iran, awaiting clarity from the US.
Total was the first Western oil major to sign a deal with Iran to develop and operate phase 11 of Iran’s South Pars in July but the company seems to have hit the brakes on the plan after US President Donald Trump refused to certify Tehran’s nuclear agreement earlier this month.
On Friday, Total’s Chief Financial Officer Patrick de La Chevardiere said the group was proceeding with plans to announce tenders for its Iran South Pars gas project and the main contract would be awarded at the beginning of 2018 when there would be clarity from the US.
The US Congress has two months to make a decision on the fate of the nuclear agreement agreed during former President Barack Obama’s administration. Trump has threatened to terminate the pact and if the US Congress agrees, Iran could be placed under renewed sanctions.
On Wednesday, Total Chief Executive Officer Patrick Pouyanne said the company was “committed” to the Iran deal but it was going “step by step” and watching the situation carefully.