Dividends and Oil major Total closes South Pars deal with Tehran

On July 4th it was reported by Reuters the French oil giant Total signed a deal with Iran to develop South Pars which is the world’s largest natural gas field. Iran had some economic sanctions lifted upon the country and the French through Total , the Chinese through China Petroleum and the Iran oil company Petropars will develop the gas field. The noting of July 4th is the US government is still making comments about Iran while other companies jumped into the economic development. The US changed its sanctions list from everything to things involving ballistic-missiles which does not include natural gas. If the US wishes to invade, the world became more complicated and tied together.

Linking to dividend paying stocks, economics and generating revenues by its self does not have any morality but countries do. They try to get along, but if one country wishes to be outside of the market which is their right to do, about country and the companies headquartered in it will step up. In the case of South Pars natural gas, it is the largest in the world and for a major oil company it is very hard not to be involved. The world and electrical generation runs on natural gas for the foreseeable future which means the gas will be sold. The cost to develop will be in the billions but so will be the revenues and Total will be able to generate the kind of returns investors like.

There are more questions than answers, till the next time – to raising questions

 

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