cloudy
Tuesday August 21st, 2018 10:24AM

Iran signs oil deal with UK group as France's Total exits

By The Associated Press
Related Articles
  Contact Editor

TEHRAN, Iran (AP) — Iranian state TV is reporting that the country has signed an agreement with a British consortium to develop an oil field, just as another major company, France's Total, says it will withdraw from Iran because of renewed U.S. sanctions.

The new agreement is the first between Iran and a company from a key Western ally of the United States since Washington last week announced it will pull out of the landmark 2015 nuclear deal between Iran and world powers.

The U.S. said it would reinstate sanctions that were lifted under the deal, which would potentially bar European companies from doing business in both the United States and Iran.

Officials from Pergas International Consortium and National Iranian South Oil Co. signed a preliminary deal on the partnership in the presence of the British ambassador in Tehran late Wednesday.

The project would entail the investment of $1 billion to produce 200,000 barrels of crude oil per day during the next decade in the 55-year-old Karanj oil field, which currently produces 120,000 barrels a day.

The U.S. sanctions aim to limit companies from any country from dealing with Iran by prohibiting them from using American banks in their operations. Pergas seems to do little business in the U.S., potentially giving it more freedom to operate in Iran.

French oil and gas giant Total has decided to cancel a multi-billion-dollar project in Iran unless it is granted a waiver by U.S. authorities. The group said in a statement Wednesday that it "cannot afford to be exposed to any secondary sanction" including the loss of financing by American banks.

Total wants U.S. and French authorities to examine the possibility of a specific project waiver.

The 2017 contract for new development at the vast South Pars gas field was the first major gas deal signed with Iran following the 2015 nuclear deal.

Major European powers and Tehran committed this week to keep working together to save the Iran nuclear deal. But President Emmanuel Macron made it clear Thursday that France will not get into a trade war against the U.S., despite Paris' disapproval of President Donald Trump's decision to scrap the nuclear deal.

"We're not going to choose one camp over another. We're not going to be the allies of Iran against the United States of America", Macron said in a news conference in Sofia, Bulgaria.

"What I want to do is to be able to provide all guarantees for all the businesses that would like to stay in Iran to be able to do so," he said. "But we're not going to impose French businesses to stay in Iran. The President of the French Republic in not the CEO of Total!"

Macron said the U.S. decision to exit the deal would benefit Russian and Chinese companies doing business with Iran at the expense of Western firms, but he insisted France's priority is to preserve peace and stability in the region.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Industries, AP Business - Utilities
© Copyright 2018 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
China vows to defend its own interests in US trade talks
China vows to defend its own interests in trade talks with US
7:42AM ( 4 minutes ago )
Burundi votes in referendum on extending president's power
Burundi votes in referendum that could extend president's power until 2034
7:19AM ( 26 minutes ago )
Halep's hold on No. 1 gets a boost with Keys' withdrawal
Simona Halep's hold on the No. 1 ranking received a boost when American opponent Madison Keys withdrew from their third-round match at the Italian Open due to a right rib injury
7:19AM ( 27 minutes ago )
Associated Press (AP)
EU to Trump: stop threatening us with tariffs
The European Union is calling for an end to U.S. President Donald Trump's threats to slap tariffs on EU steel exports as a new deadline looms for the duties to enter force
6:36AM ( 1 hour ago )
Ireland warns Brexit talks could collapse over border issue
Irish Prime Minister Leo Varadkar is warning Britain to say how it plans to keep open his country's border with Northern Ireland or face the possible collapse of a Brexit deal
6:23AM ( 1 hour ago )
Study says China-backed dam would destroy Mekong
A study says a Chinese-backed plan for Cambodia to build the Mekong River's biggest dam would destroy fisheries that feed millions and worsen tensions with Vietnam, the downstream country with most to lose from dams on the waterway
5:15AM ( 2 hours ago )
AP Business
Suit: Homeless man jailed after trying to eat at Burger King
A homeless Boston man who was wrongfully accused of trying to use counterfeit cash at Burger King and spent three months in jail is suing the fast food giant
12:19AM ( 7 hours ago )
Asian stocks mixed as investors digest US, Japan data
Asian stocks mixed as investors digest US, Japan data
12:18AM ( 7 hours ago )
Wynn Resorts points to changes after founder's resignation
The board of directors and CEO of Wynn Resorts on Wednesday sought to show shareholders they are working to strengthen the casino operator's corporate culture and moving it forward without its founder
7:00PM ( 12 hours ago )
AP Business - Corporate News
Returning otters to undersea world failing in their absence
Despite decades of government protection, southern sea otters on West Coast still only occupy about a fraction of their historic range.
12:38AM ( 7 hours ago )
British cyber expert's attorney says FBI deceived him
Attorneys for a British cybersecurity expert credited with stopping a worldwide computer virus last year told a federal judge Wednesday that the FBI agents who arrested him for allegedly creating malware used deception when interrogating him
8:52PM ( 10 hours ago )
House OKs expansion of private care at VA, budget crisis fix
House votes to give veterans more freedom to see doctors outside the Veterans Affairs health system
8:33PM ( 11 hours ago )
AP Business - Industries
US stocks veer mostly higher in morning trade; oil slides
U.S. stock indexes are edging mostly higher in morning trading as gains in health care companies and retailers outweigh losses in banks and utilities
11:43AM ( 20 hours ago )
Retailers help nudge US stocks higher in early trade
U.S. stock indexes are edging higher in early trading, and Macy's is leading a retail sector rally.
10:11AM ( 21 hours ago )
US factory production rose a healthy 0.5 percent in April
US factory production rose a healthy 0.5 percent in April on strong output of machinery, appliances
9:36AM ( 22 hours ago )
AP Business - Utilities
China vows to defend its own interests in US trade talks
China vows to defend its own interests in trade talks with US
7:42AM ( 4 minutes ago )
Burundi votes in referendum on extending president's power
Burundi votes in referendum that could extend president's power until 2034
7:19AM ( 26 minutes ago )
Halep's hold on No. 1 gets a boost with Keys' withdrawal
Simona Halep's hold on the No. 1 ranking received a boost when American opponent Madison Keys withdrew from their third-round match at the Italian Open due to a right rib injury
7:19AM ( 27 minutes ago )
Walmart beats all around, with e-commerce sales rising
Walmart reports better-than-expected profit and revenue for the first quarter with rising e-commerce sales
7:18AM ( 27 minutes ago )
Confirmation vote for CIA chief brings out Democratic rift
The upcoming vote to confirm Trump's nominee to head the CIA has brought out political divisions within the Democratic Party
7:17AM ( 28 minutes ago )