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Factbox: Company deals at risk from U.S. sanctions on Iran

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Reuters
Last Updated : May 16 2018 | 8:45 PM IST

(Reuters) - French energy company Total said on Wednesday it may pull out of the Iran South Pars 11 (SP11) energy project in light of U.S. President Donald Trump's decision to withdraw from an international nuclear deal and reinstate sanctions on Tehran.

Following is a list of deals and memoranda of understanding(MoU) that Iran has signed with foreign companies, which could be under threat amid speculation Washington may impose secondary sanctions on firms that continue to work with Tehran.

OIL AND GAS

* Total said on Wednesday it would pull out of the South Pars project and unwind all related operations by Nov. 4 "unless Total is granted a specific project waiver by U.S. authorities with the support of the French and European authorities."

The company had signed the South Pars deal in November 2016, becoming the first oil major to agree a big transaction with Tehran in the wake of the 2015 international nuclear agreement.

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Industry sources said in October 2017 that China's top oil and gas company CNPC would consider taking over Total's stake in the project if the French company left.

* Norwegian oil and gas company DNO said inNovember 2016 it was the second Western energy company afterTotal to sign a deal with Iran under which it agreed to studythe development of the Changuleh oilfield in western Iran.

* Shell signed a provisional deal in December 2016to develop Iranian oil and gas fields South Azadegan, Yadavaranand Kish. But its annual report published in 2017 showed it hadbought only three cargoes of Iranian oil since the easing ofsanctions, in a sign of the legal difficulties hampering trade.

* South Korea's Daewoo Engineering and Construction (DaewooE&C) signed a MoU in 2015 to carry out construction of an oil refinery in Bandar Jask on the southern coast of Iran.

* Norway's Aker Solutions signed a MoU in May 2016 tomodernise the Iranian oil industry.

* Austria's OMV signed a MoU in May 2016 forprojects in the Zagros area of western Iran and the Fars fieldin the south. In June 2017, OMV and Russia's Gazprom Neftannounced a MoU to work in Iran's oil sector.

* Italy's Saipem signed MoUs in 2016 to cooperate on Iranianpipeline projects, upgrading of refineries and development ofthe Tous gas field in the northeastern province of KhorasanRazavi.

* BASF's Wintershall oil and gas exploration armsigned a MoU with the National Iranian Oil Company in April2016. In February 2017, it said it was in talks about a possibleinvestment in Iran, but no decision was on the cards because ofuncertainty over the status of economic sanctions.

* In January 2017, Iran named 29 companies from more than adozen countries as being allowed to bid for oil and gas projectsusing a new, less restrictive contract model. The firms includedShell, Total, Italy's Eni, Malaysia's Petronas and Russia's Gazprom and Lukoil,as well as companies from China, Austria, Japan and elsewhere.

* Italy's Eni signed an agreement with Iran in June 2017 forfeasibility studies to develop an oil field and a gas field.

* India's Oil and Natural Gas Corp Ltd in lateFebruary signed an initial non-binding agreement with an Iraniancompany to develop the Susangerd oilfield in the south of Iran,a company source said.

* The National Iranian Oil Company signed a deal in Marchwith Russia's Zarubezhneft to develop two oilfields in Iranfields, according to SHANA, the news site of the Iranian oilministry.

RENEWABLES

* Norway's Saga Energy signed a 2.5 billion euro ($3billion) deal in October 2017 to build solar power plants inIran.

AVIATION

* U.S. planemaker Boeing agreed in December 2016 tosell 80 aircraft, including 15 Boeing 777-300ER long-range jets,to IranAir. Last month, Boeing said it had found new homes forjets it hoped to deliver to Iran this year, adding it had noIranian deliveries scheduled or part of production this year.

* European planemaker Airbus said in December 2016it had sealed a deal to sell 100 jets to IranAir. Only three have so far been delivered.

* Iran completed a deal in April 2017 to buy 20 aircraftfrom European turboprop maker ATR, half-owned by Airbus andLeonardo.

* Germany's Lufthansa said in April 2017 it was intalks with IranAir to provide catering, maintenance and pilottraining.

* Iran's Aseman Airlines agreed in April 2017 to buy 30Boeing 737 MAX jets.

* Iran's Zagros Airlines signed a MoU in June 2017 to buy 20Airbus A320neo and eight A330neo aircraft.

* Iran Airtour signed a MoU in June 2017 for 45 AirbusA320neos.

RAILWAYS

* Germany's Siemens signed a contract in October2016 to upgrade Iran's railway network. It was also to supplycomponents for 50 diesel-electric locomotives to Iran.

* China National Machinery Import and Export Corporation,signed a 2.2 billion-euro deal in May 2017 with Iran's MAPNA forelectrification of a high-speed rail line between Tehran andMashhad, according to Iran's Financial Tribune newspaper.

* Iran's state rail company and its Italian counterpart,Ferrovie dello Stato (FS) signed a final agreement worth 1.2billion euros in July 2017 to build a high-speed railway betweenthe Iranian cities of Qom and Arak.

* French train maker and manufacturing group Alstom signed a deal in July 2017 for a joint venture tobuild metro and suburban rail carriages in Iran.

AUTOMOTIVE

* French carmaker PSA had signed Iranianproduction deals worth 700 million euros ($768 million) by May2017. PSA said in January it sold 444,600 vehicles in Iran lastyear.

* Germany's Volkswagen said in July 2017 itwould start exporting cars to Iran, returning to the marketafter more than 17 years. But the company said in October 2017its Spanish arm Seat was no longer looking at the possibility ofentering the Iranian car market.

* France's Renault said in August 2017 it hadsigned a joint venture deal in Iran following an initialpartnership agreement a year earlier. The new venture includedan engineering and purchasing centre to support the developmentof local suppliers as well as a plant with an initial productioncapacity of 150,000 vehicles a year, supplementing Renault'sexisting capacity of 200,000 vehicles a year in the country.

* Germany's Mercedes-Benz Trucks signed acontract with Iran Khodro in September 2017, laying thefoundation for resuming distribution of its trucks in Iran.

* Autoneum, a Swiss maker of sound and heatshields for automobiles, in December 2017 announced a licensingdeal for Iranian vehicle supplier Ayegh Khodro Toos to producecarpets, inner dashes and floor insulators for carmakers IranKhodro and PSA, with production due to start in 2019.

BANKING

* Oberbank signed a deal with Iran in September2017, enabling it to finance new ventures there and making itone of the first European banks to do so since sanctions wereeased.

But major global banks have shied away from handlingIran-related business. Among them is HSBC, which hassaid it has no intention of doing any new business involvingIran.

HEALTHCARE

Danish insulin supplier Novo Nordisk decided in September2015 to invest 70 million euros in a factory in Iran, adding 160staff to the 130 it maintained in the country throughout thesanctions. Medicines were excepted from the sanctions butshipping drugs into the country was troublesome, due to tightcurbs on financial transactions and restrictions on technology.

($1 = 0.8445 euros)

(Compiled by Bozorgmehr Sharafedin and Arathy S Nair; Editingby Mark Potter)

Disclaimer: No Business Standard Journalist was involved in creation of this content

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First Published: May 16 2018 | 8:43 PM IST

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