The French oil and gas company Total is withdrawing from the development operations on the South Pars field Phase 11 (SP11) in the Persian Gulf (Iran) after failing to secure a special project waiver from the US authorities. This is expected to result in a US$40m worth of loss but the company will comply with the US laws and leave the Iranian market.
In July 2017, a consortium led by Total and CNPC signed a contract with the National Iranian Oil Company (NIOC) for the development of SP11, which was expected to be operated by Total (50.1%), in partnership with Petropars (100% subsidiary of NIOC, 19.9%), and the Chinese state-held oil and gas company CNPC (30%). In June 2018, the Iranian government set Total a 60-day deadline to secure a sanctions reprive from the US, failing which its stake will be awarded to another company.
The South Pars / North Dome gas field is the largest in the world and is shared between Iran and Qatar. Its development on the Iranian side is divided into about 30 phases, 25 of which are active now. Phases 1-10 are intended for domestic consumption and injection into Iranian oil fields, while gas from the other phases should be exported.