Iran understands Totals caution on gas contract
AFP
AFP, TEHRAN: Irans government understands French energy giant Totals caution over investing in the Islamic republic before Washington clarifies its position on trade with Tehran, the countrys deputy oil minister saidyesterday.
Total has announced that it is awaiting Americas final decision with regards to Iran. We understand Total, said Amir Hossein Zamani Nia, quoted by state news agency IRNA.
They want to invest five billion dollars. We are not upset with Total, he said. Since a month and a half ago... they have spent more than 20 million dollars on preparing projects in the Islamic republic.
Nia said that Iran was in negotiations with foreign companies on more than 25 projects in the oil and gas sector but it would not be held hostage to political demands.
In November, Total was awarded a $4.8 billion contract to develop an offshore gas field at South Pars -- the first deal of its kind since international sanctions on Iran were lifted in January under a nuclear deal with world powers.
The International Monetary Fund (IMF) said on Monday that uncertainty surrounding the sanctions because of Washington posed a risk to the oil-producing nations economy.
US President Donald Trumps administration last month imposed new sanctions on individuals and companies supporting Irans ballistic missile programme and its elite Revolutionary Guards.
An annual IMF report on Irans economy said renewed uncertainty regarding sanctions is dampening sentiment.
The lack of clarity could deter investment and trade with Iran and short-circuit the anticipated recovery, the report cautioned.
