Total S.A. US Withdrawal From the JCPOA: Total's Position Related to the South Pars 11 Project in Iran
17 May 2018 - 12:14AM
UK Regulatory
TIDMTTA
On 4 July 2017, Total (Paris:FP) (LSE:TTA) (NYSE:TOT), together
with the other partner Petrochina, executed the contract related to
the South Pars 11 (SP11) project, in full compliance with UN
resolutions and US, EU and French legislation applicable at the
time. SP11 is a gas development project dedicated to the supply of
domestic gas to the domestic Iranian market and for which Total has
voluntarily implemented an IRGC-free policy for all contractors
participating in the project, thereby contributing to the
international policy to restrain the field of influence of the
IRGC.
On 8 May 2018, President Donald Trump announced the United
States' decision to withdraw from the JCPOA and to reinstate the US
sanctions that were in force before the JCPOA's implementation,
subject to certain wind down periods.
As a consequence and as already explained before, Total will not
be in a position to continue the SP11 project and will have to
unwind all related operations before 4 November 2018 unless Total
is granted a specific project waiver by the US authorities with the
support of the French and European authorities. This project waiver
should include protection of the Company from any secondary
sanction as per US legislation.
Total has always been clear that it cannot afford to be exposed
to any secondary sanction, which might include the loss of
financing in dollars by US banks for its worldwide operations (US
banks are involved in more than 90% of Total's financing
operations), the loss of its US shareholders (US shareholders
represent more than 30% of Total's shareholding) or the inability
to continue its US operations (US assets represent more than 10
billion dollars of capital employed).
In these circumstances, Total will not take any further
commitment related to the SP11 project and, in accordance with its
contractual commitments vis à vis the Iranian authorities, is
engaging with the French and US authorities to examine the
possibility of a project waiver.
Total confirms that its actual spending to date with respect to
the SP11 contract is less than 40 million euros in Group share.
Furthermore, considering the various growth opportunities which
have been captured by Total in recent months, Total confirms that a
withdrawal from SP11 would not impact its production growth target
of 5% CAGR between 2016 and 2022.
About Total
Total is a global integrated energy producer and provider, a
leading international oil and gas company, a major player in
low-carbon energies. Our 98,000 employees are committed to better
energy that is safer, cleaner, more efficient, more innovative and
accessible to as many people as possible. As a responsible
corporate citizen, we focus on ensuring that our operations in more
than 130 countries worldwide consistently deliver economic, social
and environmental benefits.
* * * * *
Cautionary note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL S.A. directly or indirectly owns investments are separate
legal entities. TOTAL S.A. has no liability for their acts or
omissions. In this document, the terms "Total" and "Total Group"
are sometimes used for convenience where general references are
made to TOTAL S.A. and/or its subsidiaries. Likewise, the words
"we", "us" and "our" may also be used to refer to subsidiaries in
general or to those who work for them.
This document may contain forward-looking information and
statements that are based on a number of economic data and
assumptions made in a given economic, competitive and regulatory
environment. They may prove to be inaccurate in the future and are
subject to a number of risk factors. Neither TOTAL S.A. nor any of
its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends
contained in this document whether as a result of new information,
future events or otherwise.
TotalMedia Relations:+33 1 47 44 46
99presse@total.com@TotalPressorInvestor Relations:+44 (0)207 719
7962ir@total.com
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(END) Dow Jones Newswires
May 16, 2018 10:14 ET (14:14 GMT)
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