Total said it would not be making any further commitments towards the Iranian South Pars project for now, and added it was engaged with French and USA authorities over the possibility of a waiver to the project.
Total was the furthest advanced of its European oil major peers in a cautious feeling out of upstream opportunities in Iran since the easing of global sanctions at the start of 2016.
SP11 is a gas development project dedicated to the supply of domestic gas to the domestic Iranian market and for which Total has voluntarily implemented an IRGC-free policy for all contractors participating in the project, thereby contributing to the worldwide policy to restrain the field of influence of the IRGC.
"Total has always been clear that it can not afford to be exposed to any secondary sanction, which might include the loss of financing in dollars by United States banks for its worldwide operations, the loss of its USA shareholders or the inability to continue its U.S. operations", Total said in a statement.
Background: Despite the USA withdrawal, Iranian Foreign Minister Javad Zarif met with European Union leaders on May 15 to discuss how to circumvent US sanctions in an effort to salvage the nuclear deal.
The oil company said U.S. institutions were involved in 90pc of its financing operations, and make up 30pc of its shareholder base. Due on stream in 2021, the project should also yield around 70,000 b/d of condensate production.
Against this, Complete mentioned it had spent lower than 40 million euros ($47 million) on the Iranian challenge, which it runs with its associate Petrochina and which is devoted to the provision of home gasoline inside Iran.
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