On Monday Iran’s oil minister Bijan Namdar Zanganeh confirmed the official withdrawal of France’s Total from its project in the South Pars gas field, a contract totaling $4.9 billion.

The South Pars gas field is the world’s largest, and the announcement gives final confirmation to prior reporting of the deal’s imminent collapse due to the US reimposing sanctions on Iran in two phases in August and November after President Trump pulled out of the 2015 Iran nuclear deal. 

“Total has officially left the agreement for the development of phase 11 of South Pars (gas field). It has been more than two months that it announced that it would leave the contract,” Zanganeh told the ICANA news agency, which is linked to the oil ministry, according to the according to the .

Tehran also declared early this week that it will be able to maintain oil exports, even after extensive sanctions on the energy and baking sectors snap into effect on November 5.

Speaking to State news agency IRNA on Sunday, First Vice President Es’haq Jahangiri said that European countries have informed Tehran they will ensure the Islamic Republic against any losses — though he was vague on specifics, only that the Europeans have “given assurances” and will keep Iran’s leadership informed of steps to mitigate the impact of US sanctions. The Vice President further noted that “Tehran is drawing up plans for all contingencies” according to European countries have informed Tehran of the remarks. 

Analysts have predicted that Iran’s oil sales could fall by about 40% to 1.5 million bpd in November after the sanctions take effect, down from 2.7 million barrels per day in May — a month which set a record high since the lifting of international sanctions under the JCPOA. Currently, exports are at about 2.1 million bpd.

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