Iran sanctions: Total blames Congre (r)

[ktint@xxxxxxxxxxxxx]

French seems to love supporting brutal regimes, like the ones in Rawanda and in Burma. Is that how Total is performing in Yadana field?

>Iran sanctions: Total blames Congress
>FRIDAY MARCH 20 1998
>--------------------------------------------------------------------------
>------
>By Robert Corzine in London
>--------------------------------------------------------------------------
>------
>Total, the French oil company, says congressional opposition is the only
>obstacle to the Clinton administration in the US dropping its threat to
>impose unilateral sanctions against companies investing in Iran's oil 
>industry.
>
>Thierry Desmarest, Total's chief executive officer, said: "Without pressure
>from Congress the administration would have dropped the case against Total",
>which is developing the South Pars gas field in the Gulf along with Petronas
>of Malaysia and Gazprom of Russia.
>
>
>In an interview yesterday, he said pressure was building on Washington from
>US oil companies which were worried about the proliferation of unilateral US
>sanctions against a number of countries.
>
>
>Total has been one of the main beneficiaries of such policies, which have
>severely curtailed the ability of US oil companies - and their foreign
>counterparts with big US operations - to invest in politically controversial
>countries with promising, low-cost energy reserves.
>
>
>In addition to Iran, Total has operations in Burma and Libya.
>
>
>It has also been negotiating a production-sharing contract with Iraq to
>develop the Nahr Umar field when United Nations sanctions are lifted. That
>project is expected to cost about $3.4bn.
>
>
>Mr Desmarest said no contract had yet been signed with Baghdad.
>
>
>Nor had Total committed itself to buying long lead-time items before
>sanctions are lifted, a contract condition which the Iraqi government would
>like potential partners to agree to as a sign of good faith.
>
>
>He disagreed with some industry observers, who attribute much of Total's
>recent success to its willingness to deal with unpleasant regimes.
>
>
>"In a few cases, political constraints limit the level of competition," he
>acknowledged. "But they only represent a small proportion of Total's
>developments worldwide."
>
>
>He was confident Total would continue to secure new deals even if the US
>reversed its unilateral sanctions policy on Iran and other energy-rich
>"pariah" states.
>
>
>"We are strong enough to compete in such conditions," he said. "One of our
>competitive advantages has been to develop innovative contracts with
>developing countries, which in some cases have posed difficulties."
>
>
>He said Total managed its political risk carefully, to ensure that it was
>not over-dependent on potentially unstable countries.
>
>
>The politically pragmatic approach of Total and other continental European
>oil companies to doing business with controversial governments has been
>highlighted in recent weeks by outspoken comments by businessmen such as Mr
>Desmarest and Franco Bernabé, the head of Eni, the partly-privatised Italian
>oil company. The latter has taken to speaking publicly for the first time on
>the need to scrap sanctions against Iran, Iraq and Libya.
>
>
>Total yesterday revealed new performance targets which suggest the present
>low prices will not deter the company from increasing its output. Even if
>oil prices average just $15 a barrel in coming years Total expects to
>achieve by 2002 a 14 per cent return on capital invested in oil and gas
>production.