Iran gasfield proves too hot to handle for Total

Iran gasfield proves too hot to handle for Total

Total also confirmed it is lobbying authorities in both Paris and Washington for a waiver to the United States sanctions which are due to come into effect November 5.

Determined to keep the accord alive, European leaders need to find a way to assure companies that their investments are beyond Washington's extra-territorial reach.

Total says that it has spent about 40 million euros developing the project to this point.

German insurer Allianz and Danish tanker operator Maersk are also winding down their business in Iran.

The French oil major was among the first big western companies to return to Iran after the country emerged from years of isolation linked with its nuclear programme.

"Total will not continue the SP11 (South Pars 11) project and will have to unwind all related operations before 4 November 2018, unless Total is granted a specific project waiver by United States authorities with the support of the French and European authorities", the French oil and gas company said in a statement.

Companies are starting to take matters into their own hands as European and some other governments struggle to save the Iran deal.

Some including energy, aerospace and rail engineering firms agreed preliminary deals, but those have now been thrown into uncertainty.

The announcement shows how European companies are starting to take matters into their own hands as their leaders struggle to save an global nuclear deal with Iran after the United States withdrew and said it would reinstate sanctions on Tehran. Russian Federation has also said it remains committed to the deal.

Going against advice from European allies, he said he would reimpose economic sanctions that were waived when the deal was signed in 2015.

Total entered into a three-way agreement to develop the South Pars area in Iran for oil and gas exploration.

The nuclear agreement, worked out by the U.S. under former President Barack Obama, together with five other world powers and Iran, lifted sanctions on Iran in exchange for limits on its nuclear programme.

Trump's decision to withdraw from the 2015 nuclear deal with Iran risks exposing European countries that have since invested in Iran to renewed U.S. sanctions, after "wind-down" periods of three to six months expire.

"The current situation will pass and Iran will emerge as a victor", the oil ministry's news agency SHANA quoted Zanganeh as saying.