Total poised to pull out of Iran's SP11 project without United States waiver

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French oil and energy company Total said on Wednesday that may pull out of the Iran South Pars 11 energy project, in light of a decision by US President Donald Trump to withdraw from an global nuclear deal with Iran.

Total's position shows how hard it will be for European powers to safeguard their interests inIran and offer guarantees to save the nuclear deal.

The Phase 11 contract will automatically go to Total's consortium partner China National Petroleum Corporation (CNPC) and local player Petropars if the French player does pull out, Iranian officials have previously said.

The administration of President Donald Trump is phasing back in sanctions after his withdrawal last week from the Iran nuclear deal.

"Total has always been clear that it can not afford to be exposed to any secondary sanction, which might include the loss of financing in dollars by USA banks for its worldwide operations, the loss of its U.S. shareholders or the inability to continue its United States operations", Total said in a statement.

As a effect of the USA decision to withdraw from the Iran nuclear deal, the company said in a statement that it "will not be in a position to continue" the project, known as the South Pars 11 (SP11).

Total's announcement comes after German insurer Allianz and Danish oil product tanker operator Maersk Tankers said they were winding down their businesses in Iran.

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They also want to persuade Tehran the 2015 deal - which lifted earlier sanctions on the Islamic Republic in exchange for it curbing its nuclear ambitions - is worth sticking to.

For the French firm to remain, a challenge waiver must shield the corporate from "any secondary sanction as per USA laws", it mentioned. Joe Kaesar, the CEO of Germany's Siemens, told CNN his company would not be able to do any new business with Tehran.

The company explained that it could not afford to be exposed to any secondary sanction, which might include the loss of financing in dollars by US banks, the loss of its USA shareholders, and the inability to continue its US operations.

The group mentioned it has $10 billion of capital employed in its USA belongings, and U.S. banks are concerned in 90 % of its financing operations, making Complete extremely weak if focused by any United States actions.

France, Germany and Britain are leading a European effort to safeguard Europe's economic interests in Iran. "With that in mind it's a logical decision", a European diplomat said of Total's decision.

Total holds a 50.1 percent stake in the South Pars project.