Total signs Iran's 1st global energy deal since sanctions eased

Jul 04, 2017, 00:44
Total signs Iran's 1st global energy deal since sanctions eased

Global oil firms have not re-entered the Islamic Republic quickly following the deal made by Iran and world powers two years ago that lifted most of the sanctions place by the West on Tehran.

Officials met in Tehran and signed the agreement, which will see the firms develop a portion of the massive South Pars offshore field that Iran shares with Qatar.

The French company will serve as the operator of South Pars Phase 11 with its 50.1 percent stake in the project.

Zanganeh also held out a hand to USA oil companies, saying his country needs some $200 billion of investments in its oil industry in the next five years to make up for time lost during sanctions. That led to the European Union terminating many economic sanctions including the embargo on purchasing crude oil and gas.

He called for bolstering cooperation between Iranian and European companies in various sectors, saying that Total had made a decision to boost long-term cooperation with Iran in the fields of gas, oil and petrochemicals. Tehran calls the giant field South Pars while Doha calls it the North Field.

Saeed Laylaz, a reform-minded Iranian analyst, told the Financial Times on July 3 that the Total contract showed "that the US's new [Iran sanctions] policies are either rhetoric or have failed". Total is expected to complete the Phase 11 project in three years and extract natural gas from the field for 20 years.

Inland congressmen divided on bills targeting undocumented immigrants
It seeks to increase the maximum penalties for migrants who re-enter the United States illegally after deportation. The pair of bills face a steeper road in the Senate, where Republicans have a slim 52-48 majority.

Trump disputes Russian interference in 2016 election
"By the way, if Russian Federation was working so hard on the 2016 Election , it all took place during the Obama Admin". Priestap said the hackers stole data from some states "to understand what it consisted of" and to plan future attacks.

Apple Showcases New iMac Pro Workstation at WWDC
Among the new offerings from Apple is a challenge to the Amazon Echo and Google Home devices along with operating system updates. The iMac Pro will begin exporting in December and will be exclusive for professional users.

As Total wrote on its website, the project will have a production capacity of 2 billion cubic feet (about 56 million cubic meters) per day of gas or 400,000 barrels of oil equivalent per day including condensate.

The South Pars field is a natural gas condensate field located in the Persian Gulf.

Trump's administration has taken a tough line on Iran and imposed new USA sanctions related to its ballistic-missile program and military actions in the region.

When the initial deal was signed in November, Pouyanne, Total's CEO, said: "We're the first Western major to return to Iran". The company has identified small European banks that will furnish its local financing needs, but other companies say that financing large deals remains hard because most lenders avoid Iran, for fear of running afoul of the United States.

Current US President Donald Trump is still reviewing the sanctions against Iran, as his administration has maintained that Tehran is linking nuclear enrichment to its ballistic missiles.

"IPC offers more attractive terms and conditions, including higher rewards for risky projects as well as 20-year terms of cooperation that can be extended", Qarekhani said, adding that the new contracts include extended contract duration of 20-25 years, allowing for much longer cost recovery after first production. And some Western companies have been reluctant to jump in since Iran still faces sanctions that prevent firms from transacting with Iran in US dollars.

YOU MIGHT ALSO LIKE
  • New Jersey shutdown: 'Gov. Christie, get the hell off the beach!'

    But on Friday evening, he intentionally kept the board open, telling reporters he had no intention of taking the vote down. If you'd planned to spend the long weekend slathered in baby oil down the shore, I've got some bad news.
    Federer demolishes Zverev to win ninth Halle title

    Federer demolishes Zverev to win ninth Halle title

    Lopez, whose last tournament win was at Gstaad a year ago , has never got past the quarter-finals at Wimbledon. At 35, the Swiss player became the oldest victor of the grass-court tournament.

    Trump's environment official skipping much of G7 summit

    Secretary of State John Kerry delivers farewell remarks to State Department employees at the State Department in Washington. As a result, the USA said it would not join those sections of the report on climate and multilateral development banks.
  • Rockets, Nene reportedly agree to three-year, $11 million deal

    Now that they're securing depth after signing Nene to a cheap deal, their roster is looking strong across the board. This past season marked the 10th time Nene reached the playoffs, but he has never played in the NBA Finals.
    Brazil's Temer said billionaire influenced appointment of finance minister

    Brazil's Temer said billionaire influenced appointment of finance minister

    Temer is likely to be accused this week and face charges of official misconduct, criminal organization and obstruction of justice. As a sitting president, only the Supreme Federal Tribunal, the country's highest court, can try or jail Temer .
    South Korea eyes North as co-host for 2018 Olympics

    South Korea eyes North as co-host for 2018 Olympics

    Mr Do also suggested forming an inter-Korean women's ice hockey team to compete at the Winter Games, which open in February. The Games are to be held in PyeongChang, which is just 40 miles from the demilitarized zone separating North from South.
  • Kanye West Reportedly Leaves Tidal Over Financial Dispute

    Kanye West Reportedly Leaves Tidal Over Financial Dispute

    TMZ also reported Tidal sent a letter to West threatening a lawsuit if he attempts to join another streaming music service. Hollywoodlife.com reports that Kanye is getting ready to clap back at Jay-Z with his own revenge track .

    Grenfell Tower response: 60 high-rise blocks fail fire safety tests

    He did, however, agree with that the council had done the right thing given the circumstances. Burnham residential tower on the Chalcots Estate.

    London fire: Tests show 'combustible' cladding

    The outside cladding engulfed by the blaze has since been shown to fail all safety tests, police said. Fiona McCormack said the Hotpoint FF175BP fridge-freezer had not been subject to any product recall.
  • Mahershala Ali May Take on True Detective -- but Who Else Will Join?

    Mahershala Ali May Take on True Detective -- but Who Else Will Join?

    It's important to note that Ali's deal has not yet been closed and that HBO still has yet to officially announce a third season. It seems that getting an actor right after they win an Oscar leads to a more successful season.

    Bill Cosby trial Day 8: Jury resumes deliberations for a third day

    They were chosen in Pittsburgh and bused 300 miles to suburban Philadelphia, where they are sequestered until the trial's end. Attorney Gloria Allred confirmed that a civil case against Cosby is scheduled to start later this month in California .

    Judge considering release of Cosby juror names

    Accuser Andrea Constand walks in a hallway during the fifth day of deliberations in Cosby's Friday sexual assault trial. Safier, a lawyer representing additional media outlets who joined in the request to release the jurors' identities.
popular