France’s oil giant Total SA has pulled out of Iran after cancelling its £3.9 billion, 20-year agreement to develop the country’s massive South Pars offshore natural gas field following renewed US sanctions.
Iranian oil minister Bijan Zanganeh said since the French firm first announced its decision a while ago, Iran has been in the process of “looking for an alternative” to Total.
Earlier this month, Iran said China’s state-owned petroleum corporation took a majority 80% share of the project. The China National Petroleum Corp (CNPC) originally had some 30% of shares in the development.
The renewed US sanctions took effect in August, after America pulled out from the nuclear deal in May.