French oil and energy company Total said on Wednesday that may pull out of the Iran South Pars 11 energy project, in light of a decision by US President Donald Trump to withdraw from an global nuclear deal with Iran.
Total has been carrying out tenders for topsides, jackets, pipelines and other work since soon after receiving its $2 billion contract for the gas field in July 2017, but it has yet to make a final investment decision.
In a statement, Total said it "will have to unwind all related operations" before November 4, unless it's granted a specific waiver by USA authorities that would protect it against secondary sanctions.
For the French company to stay, a project waiver would have to protect the company from "any secondary sanction as per United States legislation", it said.
Companies are starting to take matters into their own hands as European and some other governments struggle to save an global nuclear deal with Iran after the United States withdrew and said it would reinstate sanctions on Tehran.
According to Total, US banks are involved in more than 90% of its financing operations.
The company also confirmed its 5%/year average production growth target between 2016 and 2022, noting "various growth opportunities which have been captured by Total in recent months."Total also said its actual investment to date with respect to the south Pars contract is less than Eur40 million".
The company said it had spent less than €40 million ($47 million) on the project so far.
The group mentioned it has $10 billion of capital employed in its United States belongings, and USA banks are concerned in 90 % of its financing operations, making Complete extremely weak if focused by any U.S. actions.
CNPC has a 30% stake in the venture, with Petropars at 19.9%, leaving Total with an operatorship of 50.1%.
The nuclear agreement, worked out by the USA under former President Barack Obama, together with five other world powers and Iran, lifted sanctions on Iran in exchange for limits on its nuclear programme.
Total also confirmed it is lobbying authorities in both Paris and Washington for a waiver to the USA sanctions which are due to come into effect November 5.