Head of Total Patrick Pouyanne talks about Russian sanctions, Yamal LNG and Iran
The French petroleum company Total, despite the decline in oil prices, sanctions against Russia and tragic death of its head Christophe de Margerie at Moscow Vnukovo airport, has remained the largest Western investor in Russia's relevant projects. Why the company maintained its share in Yamal LNG and Novatek, how it relates to claims of the Russian Ministry of Energy and when it will return to Iran were told by Chief Executive Officer of Total Patrick Pouyanne to the Kommersant.
Q- Are you going to go back to Iran after the sanctions against the country will be lifted?
A- First, we’ll see what the agreement (on the Iranian nuclear program) will bring. As long as the sanctions are not lifted, we can’t work in Iran. Total was one of the first international oil companies, that started work in the country in the 1990s, we had a big gas project with Gazprom and Petronas at the South Pars field. The Iranian authorities know us very well since that time, when we went into the country in 1954. Besides, Iran is one of three countries with the largest gas reserves in the world, and if you are an international gas company like Total, you can’t choose: you have to work where oil and gas are. So, of course, Iran will be a part of our strategy, if the sanctions are lifted.
Q- Do you consider gas projects in Iran?
A- We consider as gas, as well as oil. When we were forced to leave Iran in 2006, we actively worked on the LNG project at the South Pars field, so first of all we consider very carefully LNG projects. But it's not just a matter of our intentions, but also contractual terms that Iran offered to foreign investors. We are not looking for production volumes, we need cost-effective projects.
Q- Can you compare the Iranian situation with the Russian one?
A- I hope not, because these or those sanctions against Iran have been maintained for the past 26 years. I hope that in this respect there won’t be comparison with Russia. I don’t think that economic sanctions are an appropriate tool of diplomacy. Geopolitical conflicts can only be resolved through dialogue. As for the sanctions, they are much easier to be introduced than to be removed. In this situation, there are penalties for both sides, as they are introduced from Russia too. And they are detrimental to both sides: for Russia, and for the European economy, particularly the agricultural sector.
