French firm 'quits Iran gas deal' ( The Total Oil Firm )

BBC ^ | Thursday, 10 July 2008 04:46 UK 03:46 GMT, | BBC Staff

[Ernest_at_the_Beach]

French firm 'quits Iran gas deal'

Total was reportedly the last major western energy firm interested in Iran

The boss of French energy giant Total says he will not invest in Iran because it is too risky.

The firm had been due to develop gas fields in the south of the country, but Christophe de Margerie told the Financial Times it would not go ahead.

The announcement comes a day after Iran test-fired a series of missiles, amid weeks of rising tensions with Israel and the US over its nuclear ambitions.

Analysts say the move will be a big blow to Iran's energy industry.

"Today we would be taking too much political risk to invest in Iran because people will say: 'Total will do anything for money'," Mr Margerie told the newspaper.

Early on Wednesday Iran test-fired a missile capable of reaching Tel Aviv.

Iran state media said nine missiles had been fired in total, including a new Shahab-3, with a range of 2,000km (1,240 miles).

Gen Hossein Salami, the Iranian Revolutionary Guard's air force commander, said the tests demonstrated Iran's "resolve and might against enemies who in recent weeks have threatened Iran with harsh language".

State media quoted him as saying: "Our hands are always on the trigger and our missiles are ready for launch."

Tehran has tested the Shahab-3 before, but the latest launch comes amid rising tensions in the region.

William Burns, the top official handling Iranian issues at the US state department, said the launch was "very disturbing, provocative and reckless".

But US officials played down suggestions that the move had brought military confrontation with Iran any closer.

"The reality is there is a lot of signalling going on, but everybody recognises what the consequences of any kind of a conflict would be," said Defense Secretary Robert Gates.

In recent weeks, the US has stepped up the pressure to impose tougher sanctions on Iran and companies that do business with it.

The FT reported that Total was the last major western energy group considering making a significant investment to develop Iran's huge natural gas reserves.

[Ernest_at_the_Beach]

fyi

[Ernest_at_the_Beach]

Related thread:

Gates: Iran's test shows missile defense needed in Europe

[max americana]

Just like Iraq and WW2, the French will only invest after American blood has been spilled.

[NormsRevenge]

bummer for all the firms and the people of Iran that yearn to be a free and prosperous people

[SunkenCiv]

The boss of French energy giant Total says he will not invest in Iran because it is too risky.

Wow, where'd he get that? ;') Thanks Ernest.

[bruinbirdman]

"Total was the last major western energy group considering making a significant investment to develop Iran's huge natural gas reserves"

How much of Total is owned by the French government?

The deal was not quashed by the company. The G8 voted to increase sanctions on Iran. I think this is Sarkozy's doing. The French do lots of business in ME.

yitbos

[edpc]

Gen Hossein Salami, the Iranian Revolutionary Guard's air force commander.......

State media quoted him as saying: "Our hands are always on the trigger and our missiles are ready for launch." "I am always surrounded by bread....and mustard."

[bruinbirdman]

FT: Total steps back from investing in Iran

Together with Malaysia’s Petronas, Total was due to develop phase 11 of the South Pars field and had until Wednesday maintained it had not decided to drop its interest in the project. After May’s announcement that Royal Dutch Shell and Repsol YPF of Spain would pull out of Phase 13, Total was left exposed.

Total’s move is a big blow for Iran, which is now unlikely to be able to significantly raise its gas exports until late in the next decade at the soonest. Samuel Ciszuk, Middle East energy analyst at Global Insight, called Total’s decision “a death blow” for Iran’s LNG ambitions, because the country would now be unable to gain the knowhow it needed for such complex projects, even if it teamed up with Russia or China.

None of the western oil companies including Total is willing definitively to close the door on Iran’s massive hydrocarbon reserves. Shell and Repsol said they could still join later stages of the development of the field.

In a further sign of the increased scrutiny over investments in Iran’s energy sector, William Burns, the US state department’s top official on Iran, told a US congressional committee on Wednesday that Washington would conduct a “serious review” to see whether the Norwegian group StatoilHydro had violated US law by carrying out a large investment in Iran.

Washington had been particularly worried about Total, and US officials concede measures affecting the transfer of western investment and knowhow to Iran’s energy sector have a much greater impact than do financial sanctions. But Mr de Margerie voiced his anger at the policy, saying: “You take two major countries [Iran and Iraq] out of the system and then you say: ‘There is not enough oil and gas.’ Oh no, surprise, surprise.”

Wednesday’s test firing left the oil market unfazed, with oil prices failing to make up recent losses and trading at $136.20 a barrel.

[Proud_USA_Republican]

Iran’s learning that pounding a sword on a podium only gets you a big fat nothing down the road. As does singing to the choir which is all they have been doing lately.
Firing those missiles was one of the biggest “singing to the chior” moments I’ve seen in sometime.

[Marine_Uncle]

And eventually the podium will be chopped up and the goon will fall down.

[RightWhale]

This is a reasonable cause for the jump in NYMEX crude futures a short time ago.

[RightWhale]

Perhaps that state Chinese oil company would come in now. China can tolerate Zimbabwe, but Iran might be tough.