France’s Total Poised to Sign Crude Oil Deal with Iran
TEHRAN (Tasnim) – French energy giant Total is set to sign a deal to buy oil from Iran, hours after French car-maker Peugeot became the first western company on Thursday to sign a binding contract with an Iranian group following the lifting of sanctions.
The announcement is set to come as Iranian President Hassan Rouhani arrived in France for the second leg of his state visit to Europe, after three days in Italy. He is seeking to rebuild economic ties after termination of anti-sanctions.
Total CEO Patrick Pouyanné said the company will buy 150,000 to 200,000 barrels a day of Iranian crude, The Financial Times reported.
The agreement which will be signed at the French presidency later Thursday, is the first post-sanctions deal of its kind with a big western oil group.
With the end of economic and financial sanctions, Iran has decided to increase its oil production 500,000 barrels a day.
Iran, which has the world's fourth-largest oil reserves, currently produces 2.8 million barrels a day, about a million of which are destined for export.
Pouyanne said other French projects were also in the pipeline with Iran.
"Total has been very present in Iran, very loyal to Iran. We have obviously envisaged other projects but they need to be discussed," he said.