France’s Total seeks oil, gas contracts with Iran

France’s energy giant Total seeks oil and natural gas projects in Iran, a report says.

According to Russia’s business daily Kommersant, Total’s chief executive Patrick Pouyanné has said that his company seeks liquefied natural gas (LNG) and oil projects in Iran.

“We are looking at both gas and oil. When we had to leave Iran in 2006, we were actively working at an LNG project at South Pars (field) [in southern Iran]. So, first of all, we are closely looking at LNG projects,” Kommersant quoted Pouyanné as saying.

Pouyanné told the Russian paper that Total’s possible participation in Iran’s energy sector would depend on the terms that Tehran offers to foreign investors.

The comments follow the recent conclusion of nuclear talks between Iran and the P5+1 countries.

On July 14, Iran and the P5+1 group – the United States, Britain, France, China, Russia and Germany – reached a conclusion on the Joint Comprehensive Plan of Action (JCPOA) in the Austrian capital of Vienna following 18 days of intensive talks over Tehran’s nuclear program.

Based on the conclusion, limits will be put on Iran’s nuclear activities in exchange for the removal of sanctions, including all economic and financial bans, against the Islamic Republic.

Recently, the global ratings agency, Fitch, said in a statement that Iran has the long-term potential to become one of the world’s top gas producers, thanks to its 34 trillion cubic meters (tcm) of natural gas reserves, or around 18% of the world’s total.

Presently, much of Iran’s gas production goes to domestic consumption, with exports hardly surpassing 10 billion cubic meters a year but officials expect production to grow 71% in the next four years.

Officials say Iran’s priority for now is to send its gas to the regional markets via pipelines and resort to LNG and LPG shipments for long hauls.