China′s CNPC takes over Total′s share in Iran gas project | News | DW | 11.08.2018

We use cookies to improve our service for you. You can find more information in our data protection declaration.

More info OK
  1. Inhalt
  2. Navigation
  3. Weitere Inhalte
  4. Metanavigation
  5. Suche
  6. Choose from 30 Languages

News

China's CNPC takes over Total's share in Iran gas project

The French energy giant had said it would pull out of the project if unable to secure a US sanctions waiver. CNPC will own an 80 percent stake in the multibillion dollar gas project, the Iranian state news agency said.

A man walks by the headquarters of the China National Petroleum Corporation in Beijing on March 25, 2015.

China's state-owned energy company CNPC has taken over Total's share in Iran's South Pars gas project, the Iranian state news agency IRNA reported on Saturday.

The news, if confirmed, would mean that the French company failed to secure a waiver from US sanctions, which were re-imposed on the Islamic republic earlier this month.

Total had said it would pull out of the project unless it secured a waiver. But it did not say what it would do with its stake should it pull out. Total has until November 4 to wind down its Iranian operations.

Total was not immediately available for comment.

Biggest natural gas reserves

Total and CNPC are part of an international consortium that signed a deal with Iran's state oil firm National Iranian Oil Company (NIOC) in 2017 to develop Phase II of the South Pars field, which has the world's biggest natural gas reserves ever found in one place.

Total made an initial investment of $1 billion (€875 million) for its 50.1 percent stake. It was the first Western energy investment in the Islamic republic after sanctions were lifted in 2016. CNPC bought 30 percent of the project.

"China National Petroleum Corp (CNPC) has replaced Total of France with an 80.1 percent stake in Phase II of the South Pars (gas field)," IRNA quoted Mohammad Mostafavi, director of investment at NIOC, as saying.

US President Donald Trump has renewed the sanctions lifted under a 2015 nuclear deal between Tehran and global powers. Trump plans to slap heavier sanctions in November targeting the country's oil sector.

ap/jm (Reuters)

Each evening at 1830 UTC, DW's editors send out a selection of the day's hard news and quality feature journalism. You can sign up to receive it directly here.

  • US President Donald Trump signs an EO on Iran sanctions (Shealah Craighead )

    US sanctions against Iran are back in effect

    Sanctions signed off

    US President Trump signed an executive order on August 5 aimed at piling financial pressure on Tehran to force a "comprehensive and lasting solution" to Iranian threats, including its development of missiles and regional "malign" activities. Trump warned that those who don't wind down their economic ties to Iran "risk severe consequences."

  • Banknotes: US dollars, euros and Iranian rials (Getty Images/AFP/A. Kenare)

    US sanctions against Iran are back in effect

    Where's the money?

    The first phase, which took effect on August 7, targets the Islamic Republic's access to US banknotes, making transactions in a US-dollar dominated financial world difficult. A ban on Iran purchasing precious metals including gold further serves as an attempt to cut the country off from global markets.

  • IranAir passenger plane (picture alliance/AP Photo)

    US sanctions against Iran are back in effect

    Planes, cars and carpets

    Phase one also hits key industries including the purchase of commercial planes, cars and carpets. Iranian imports of graphite, aluminum, steel, coal, gold and some software are also affected. German automaker Daimler called off the production and sale of Mercedes-Benz trucks in Iran indefinitely after the sanctions came into force.

  • Iranian oil platform (Reuters/R. Homavandi)

    US sanctions against Iran are back in effect

    Fuel to the fire

    A second phase of sanctions — which is due to take effect on November 5 and will block Iran's oil sales — is due to cause more damage. Several countries, however, including China, India and Turkey have indicated they are not willing to entirely cut their Iranian energy purchases.

  • Iranian President Hassan Rouhani (picture-alliance/AP Photo/Iranian Presidency Office)

    US sanctions against Iran are back in effect

    'Psychological warfare'

    Iranian President Hassan Rouhani said that the United States had launched "psychological warfare" against Iran to create division amongst its people. But he insisted that Iran still can rely on its allies China and Russia to keep its oil and banking sectors afloat. He has also demanded compensation for decades of American "intervention" in the Islamic Republic.

  • The EU's foreign policy chief, Federica Mogherini, with New Zealand foreign minister, Winston Peters (picture-alliance/AP/New Zealand Herald/M. Mitchell)

    US sanctions against Iran are back in effect

    EU protection

    European Union foreign policy chief Federica Mogherini said the bloc is encouraging small and medium enterprises to increase their business with Iran. She said Tehran has been compliant with their nuclear-related commitments. The EU issued a "blocking statute" to protect European businesses from the impact of the sanctions.

    Author: Keith Walker


DW recommends

How the EU plans to get around US sanctions on Iran

The EU is using new regulations to persuade companies to continue working with Iran. But protection against US secondary sanctions remains difficult in practice. Bernd Riegert reports from Brussels. (07.08.2018)  

US reimposes sanctions on Iran: What does that mean?

The Trump administration has reimposed the first tranche of sanctions on Iran, isolating Washington as much as Tehran. A second round of US sanctions in November will target Iran's energy sector. (07.08.2018)  

EU defiant in face of Trump threats over Iran trade

The EU foreign affairs minister encouraged companies to ignore US President Donald Trump's threats on doing business with Iran. She said it's up to Europeans to decide who they trade with. (07.08.2018)  

France's Total signs Iran gas deal delayed by sanctions

Iran has signed a contract with French energy giant Total to develop its giant South Pars gas field. The 20-year deal is the largest since sanctions were lifted against Tehran last year. (03.07.2017)  

US sanctions and who they target

The US serves as a cornerstone of global trade and sometimes uses this position to punish rival nations. DW looks into key restrictions that Washington cuurently imposes on Iran, Cuba, Russia, North Korea, and Syria. (09.08.2018)  

US sanctions against Iran are back in effect

The first phase of US sanctions against Iran went back into effect on Tuesday. Here's a breakdown of what the sanctions are targeting and how Iran has reacted to the measures. (07.08.2018)  

WWW links

DW newsletter registration link  

Audios and videos on the topic

Growing insecurity over trading with Iran  

EU companies in Iran weighing options  

Related content

Symbolfoto: Sanktionen der USA gegen den Iran

US sanctions Iran networks accused of supporting child soldiers 16.10.2018

The US has targeted an Iranian network of businesses that allegedly funded a paramilitary group affiliated with the Revolutionary Guard. The so-called Basij group reportedly trained and deployed child soldiers in Syria.

Indien Russland Narendra Modi umarmt Vladimir Putin

India tests US sanctions with purchase of Russian arms, Iranian oil 05.10.2018

India and Russia have announced a major arms deal, violating US sanctions. Energy sector sources also say New Delhi will purchase 9 million barrels of Iranian oil. Both moves will test India's relations with the US.

Saudi Arabien Riad - Startzeremonie für Qiddiya-Resort Projekt

Saudi Arabia: Powerful, but not omnipotent after Khashoggi affair 18.10.2018

Saudi Arabia's reputation has suffered massively as a result of Jamal Khashoggi's suspected murder. World leaders are keeping their distance. The country could be hostile in the face of criticism, or enact reforms.

Advertisement

News Bulletin

Top stories in 90 seconds

DW News presents the most important news — in brief, quickly and up-to-date.