Total Signs Deal With Iran, Exposing It to Big Risks and Rewards
Iranian oil officials are known as tough negotiators, but Mr. Pouyanné argues
that by being the first of the big international oil companies to sign a major deal with a post-sanctions Iran, he was able to shape much better terms than had been offered in the past.
While Mr. Pouyanné cannot rule out new sanctions, he and other potential investors were pleased when the Trump administration reapproved waivers, originally signed by the Obama administration, exempting international companies
that invest in Iran from certain United States sanctions.
On Monday, though, Mr. Pouyanné was comfortable enough with the risks to sign an agreement in Tehran committing his company to lead a natural gas project in the Persian Gulf
that could open Iran’s huge petroleum reserves to international players.
Being in the lead could also position Total to reap other rewards, possibly including access to the
Azadegan oil field, which could become one of the industry’s largest projects in the next decade.
But it also exposes the company to risk if Mr. Trump reneges on the Iran nuclear
deal, or if the United States imposes further sanctions against Tehran.
Iran has vast energy resources — the world’s largest proven natural gas reserves
and the second-largest trove of oil in the Persian Gulf, according to the BP Statistical Review of World Energy.
