China’s CNPC is ready to step in if Total decides to exit its Iranian projects to comply with US sanctions, a news report said.
Total’s $1billion deal to develop the South Pars gas field included an option for CNPC to take over the French giant’s stake if it opts to leave, industry sources told Reuters.
It would mean CNPC taking on 80% of the cost of the project, the report said.
Western energy firms have been able to invest in Iran following the 2015 lifting of sanctions against Iran’s nuclear programme.
But US President Donald Trump is an opponent of the agreement, and Congress will vote of whether to reimpose the sanctions.
South Pars will be capable of pumping out 400,000 barrels of oil.