Thursday 6 July 2017 - 13:43
Story Code : 267280
France engages in development of Iranian gas fields as US mulls new sanctions
TOTALS NEW CONTRACT
On Monday, Total, together withChinas National Petroleum Company (CNPC) and the National Iranian Oil Company (NIOC) signed a 20-year contract fordevelopment ofphase 11 ofIrans South Pars field (SP11), the worlds largest natural gas field.
The project will have a production capacity of2 billion cubic feet per day, withthe produced gas starting tosupply the Iranian domestic market in2021, Total said ina statement.
"Total has never entirely left Iran. Even amidthe crisis the company tried tomaintain its presence inthe country. For them, it was a security deposit, because the stakes were too high," Thomas Flichy de La Neuville, a coordinator ofthe French military experts group SYNOPSIS and a specialist inIranian affairs, told Sputnik.
Total is not playing againstthe United States, butonly playing foritself, while the United States are too busy dealing withinternal issues to "pursue a competent policy inthe Middle East," the expert added.
"Too many contradictions betweenthe State Department, Pentagon and various agencies," La Neuville explained.
He added that the contract was signed despitethe fact that the relations betweenIran and France deteriorated overthe pastyears. This, La Neuville explained, signified that there was "sympathy" betweenthe countries, which allows forrevival ofthe dialogue.
As forthe latest US sanctions againstIran, introduced in2017, Total is undertaking certain precautions inorder topreserve the sanctions regime, violation ofwhich "could turn againstEuropean companies," Milad Jokar, a member ofthe Institute forEuropean Prospective and Security, told Sputnik.
US AND IRAN
The United States introduced a new roundof sanctions againstIran inFebruary inresponse toTehran's medium-range ballistic missile test inJanuary. In June, US Senate approved further amendments onthe Iranian sanctions bill that still need tobe approved bythe House ofRepresentatives and President Donald Trump.
"Total appointed a special person, whose only task would be tocontrol that the sanctions are not violated, excluding the nuclear program sanctions, because they were lifted," Jokar explained.
If the United States try to "punish" European companies fordoing business withIran, "it will be considered a violation ofthe nuclear deal signed in2015" bythe P5+1 group ofcountries, namely China, France, Russia, the United Kingdom, the United States and Germany, and Iran, Jokar said, adding that European states would oppose Trumps desire toeconomically isolate Iran.
The 2015 Joint Comprehensive Plan ofAction (JCPOA) stipulated gradual lifting ofthe economic and diplomatic sanctions previously imposed onIran inexchange forTehran maintaining a peaceful nature ofits nuclear program. The plans implementation began inJanuary 2016.
Jokar added that US companies were also interested inthe Iranian market, stressing though that Trumps desire toisolate Iran "runs counter tothese plans."
La Neuville confirmed that the United States never stopped holding negotiations withIran ongas contracts, asmany "pragmatic people" understand the importance ofthe Iranian market and the possible distribution channels and "use any opportunity tosign contracts."
"The behavior ofTrump, who is described asa businessman, is surprising, because isolating Iran means putting an end tothe US business inIran. It means creating conditions inIran forother countries. It means pure losses forthe United States," Jokar explained.
RUSSIA AND OTHER PARTNERS
In March, Iranian President Hassan Rouhani arrived inRussia witha visit, duringwhich the countries signed 16 cooperation agreements invarious fields, including exploration ofoil and gas fields. According toRussian Deputy Energy Minister Kirill Molodtsov, the total volume ofRussian companies investments inthe oil and gas sector ofIran can amount tomore than $20 billion.
The new agreement withTotal should not affect Tehrans "friendly and economically complementary" relations withMoscow, La Neuville said, stressing that Iran aims topursue a balanced policy and does not want tostep aside fromits previous partners that "supported him indifficult times."
Jokar, inhis turn, stated that Irans economic openness had a positive influence not only onthe bilateral relations ofthe country, butalso onthe relations withinthe entire region, creating "a platform forcontacts inthe region."
# Tags
