Russian Gazpron to replace French Total in Iranian oil business

Gazprom eager to replace Total in Iran
Sun, 13 Jul 2008 23:04:23

Russian energy giant Gazprom announces its interest in Iranian oil and gas projects, as the French Group Total pulls out of the country.

"We are ready to provide Iran with all our technology and know-how in the frame work of cooperation," IRNA quoted Gazprom's CEO and Vice Chairman Alexey B. Miller as saying during a Sunday meeting with Iran's President Mahmoud Ahmadinejad.

Gazprom is interested in working with Iran on major energy projects, such as the North and South Pars, Azadegan and Caspian Sea ventures, said Miller.

Ahmadinejad also welcomed joint gas projects between Iran and Gazprom and said Iranian and Russian energy cooperation could benefit the global market and help poorer nations.

This is while Total's chief executive Christophe de Margerie told the Financial Time on Wednesday the group it would be withdrawing from a deal to develop Phase 11 of the country's South Pars gas field.

Total's pull out came as Washington threatened foreign companies with heavy penalties if they invest in Iranian oil and gas projects, under the impression that blocking investment in the country's energy sector could prove more effective than sanctions in forcing Tehran to back down over its nuclear program.

Total's decision, however, did not come as a surprise to Iran because the extended June deadline Tehran had set for the French company to sign a final deal was well over.

MJ/RA