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The Dirty Dozen #9: Total SA

Jan 01, 1988

 
Total SA, headquartered in France, is among the leading energy investors in terrorist-sponsoring states, including Iran, Libya, Sudan, Syria and, prior to the Iraq war, Saddam Hussein's Iraq.  Its ties to these countries include ownership and development stakes in oil and gas fields that have generated significant revenues for the governments of these countries.  Total's projects in these countries are valued at more than $3 billion and possibly much higher. 

Through close cooperation with Iran's state-owned National Iranian Oil Company, Total is involved in joint research projects and contracts for the development and operation of numerous onshore and offshore oil fields in Iran.  Included in these are projects at Kharg Island and Dorood field, projects at the Balal oil field and a 40% stake in the South Pars natural gas field.  Total has openly stated its intention to spend as much as $2 billion on the development of South Pars alone. 1  

In the run-up to the Iraq war, it was reported that, in March 2003, Total SA negotiated a major contract with Saddam Hussein's regime to develop Iraq's southern oil fields.  The value of this contract was estimated at some $40-60 billion.  In Sudan, the company has been in control of Block B oilfield together with Kufpec and Marathon for a number of years. 2  

In Syria, it has been the lead developer of the $400 million Desgas project.  The project reportedly processes some 740 million cubic feet of gas per day.  Total's oil industry investments generate an estimated 50,000 barrels of oil per day in close coordination with the state-owned Syrian Petroleum Company. 3

In response to Total's actions in countries with no respectable human rights record, such as Burma or Sudan, Total's website claims that "the worlds oil and gas reserves are not necessarily located in democracies." The company claims that despite its operations in countries with "repressive regimes" it will be committed to "developing economically viable projects while adhering to national and international laws."4 Yet Total still invests heavily in countries that support the very same violation international agreements and national laws by the host governments.

Total's activities place it on the "Dirty Dozen" list for the following reasons:

  • U.S. Sanctions Violator : In 1997, Total became the first company to flout openly the U.S. Iran-Libya Sanctions Act.  That law was specifically designed to ensure that Iran and Libya were unable to realize substantial energy-related revenues that could be used to advance those countries sponsorship of terrorism.  Once Total ignored the law with impunity, a flood of foreign companies rushed to enter the energy market of those countries.
  • Revenues : The primary source of hard currency for most of the U.S.-designated terrorist-sponsoring states is the export of oil and natural gas.  Some 40-50 percent of Iran's overall budget comes from oil and natural gas revenues.5   Syria and Sudan are likewise dependent on such revenues.  Put simply, without the revenues provided by companies like Total, these governments would be unable to support terrorism and maintain expensive weapons programs.
  • GeopoliticalMotives : It is widely accepted that a government's sponsorship of terrorism plays no role in Total's strategic planning.  Yet, the company has been accused of using its willingness to defy U.S. sanctions to its advantage in negotiations with sanctioned nations.  For example, some have speculated that the enormity of the reported $40-60 billion deal Total inked near the end of Saddam Hussein's reign reflected the Iraqi dictator's expectation that French political support would be assured by such a lucrative agreement.  It strains credulity that the U.S. would knowingly wish to hold the stock of a company whose corporate interests may lead it and its government to pursue an agenda antithetical to Western security interests and at odds with U.S. policies and laws for crass commercial reasons.  Yet, Total is one of the most widely held foreign stocks in the portfolios of public pension funds throughout the 50 states.6
  • Moral and Political Cover :  When leading global companies such as Total SA partner with terrorist-sponsoring states, it sends a clear message to these governments: Sponsoring terrorism is not a concern as long as there are corporate profits to be made. Its continued operation in countries with repressive regimes proves that the company values its own profits over the lives of innocents. This message undermines U.S. sanctions and international diplomatic efforts.

1. Company Global Report, 2001; The Regulatory News Service, 5/13/02; and Agence France Presse, 12/13/01.

2. The New Republic, 3/17/03; and Africa Energy Intelligence, 3/6/03.

3. Bloomberg News, 8/7/02; Platt's Oilgram News, 8/8/02; Africa Review World of Information, 9/23/03; WWP- Report on Oil Gas & Petrochemicals in the Developing World, 1/1/03; and AFX/Regulatory News Service, 1/28/02.

4. Company website (retrieved 12/11/06). <http://burma.total.com/>. For more on democracy and human rights for Burma, visit the Free Burma Coalition's website at http://www.freeburmacoalition.org/.

5. Country Analysis Briefs, Energy Information Administration, Department of Energy, May 2002; and Country Analysis Briefs, Energy Information Administration, Department of Energy, July, 2002.

6. The New Republic, 3/17/03.

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