Total said it will need a waiver from the US to continue operations in Iran. File photo: Denis Charlet/AFP
ERBIL, Kurdistan Region – French oil and gas titan Total announced on Wednesday that it may have to end its project in Iran unless it is exempted from sanctions after the US pulled out of the nuclear deal.
On May 8, US President Donald Trump announced his decision to withdraw from the 2015 Iran nuclear deal and re-impose sanctions.
Iran’s Foreign Minister Mohammad Javad Zarif embarked on a multi-country tour
in a bid to salvage the deal. He has not yet returned to Iran, but several major companies have announced they will cease operations in the Islamic Republic.
"Total will not be in a position to continue the SP11 project and will have to unwind all related operations before 4 November 2018 unless Total is granted a specific project waiver by the US authorities with the support of the French and European authorities," the company stated on Wednesday.
South Pars (SP11) is a gas development project to supply gas for Iran’s domestic market.
International companies, with large interests tied to the United States, are preparing to leave Iran's market before Washington implements sanctions.
Total explained in its statement that more than 90 percent of its financial transactions are via US banks and US shareholders have more than 30 percent share in the company.
On Sunday, Joe Kaeser, CEO of Siemens, one of the world's largest producers of energy-efficient, resource-saving technologies, told CNN that they will stop all new orders from Iran.
Other major multinational companies like Airbus and Boeing have also announced they will halt trading with Iran.