Madrid (Platts)--1Jul2008
Total CEO Christophe de Margerie Tuesday said the inability of
international oil companies to invest in certain countries like Iran because
of embargoes and sanctions was having an impact on the market and leaders
adopting such decisions should accept the consequences of their actions.
De Margerie, who made clear at a news conference in Madrid that he was
not defending the company's activities in Iran, was referring to US sanctions
against the OPEC oil producing nation which also has the world's second
biggest gas reserves after Russia.
He noted that Iraq, which is now offering technical service agreements to
oil majors, remained off limits to foreign staff because of the security
situation there.
"Iraq and Iran are very important in that debate," said de Margerie, who
is in Madrid taking part in the World Petroleum Congress, the industry's
biggest gathering.
"Our leaders, when they take decisions, need to understand the impact and
not just be told what they want to hear. Our responsibility is to say it as it
is. If you want to have an embargo, the impact will be that," he said.
"If you don't produce gas in Iran, of course it will have an impact on
the market," de Margerie said, noting the country's vast gas reserves.
"We must tell leaders: 'If you take decisions, you have to accept the
impact,'" said de Margerie.
Total has been negotiating a major LNG deal with the Iranians for several
years but has failed to make a final investment decision because of the threat
of unilateral US sanctions, which threaten to penalize companies of any
nationalities that invest in Iran's energy sector, and constraints imposed by
UN sanctions, slapped on Iran in the ongoing row over its nuclear program.
Shell and Spain's Repsol are negotiating a separate LNG deal with Iran
but the two companies have also delayed a final investment decision.
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