The French energy giant Total has revealed that it is pulling back from a potential investment in Iran because of what its chief executive calls “too much of a political risk", according to a report by the ‘Financial Times’ newspaper. The firm's decision follows similar announcements by British Shell and Spain's Repsol. The decision means that Iran has lost the last major Western energy group intent of making a significant investment to develop and exploit the country's enormous gas reserves. It is being seen as a victory for international efforts to isolate Tehran over its nuclear program.
Total and Malaysia's Petronas had been due to develop ‘Phase 11’ of the South Pars field and had been insisting that these plans were going to go ahead. However, the French giant was left exposed after Shell and Repsol pulled out of the project in May. Total chief executive Christophe de Margerie told the ‘Financial Times’: "Today, we would be taking too much political risk to invest in Iran because people will say 'Total will do anything for money'."
Analysts called the announcement a major blow for Iran, which may now not be able to raise its gas exports significantly for some years to come. It needs the expertise of foreign companies like Total to develop the exploitation of its gas fields.
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