French oil giant Total is preparing to pull out of Iran to avoid risking US sanctions.

The company said on Wednesday that it was unable to proceed with a $2 billion project to develop the country's giant South Pars gas field.

In a statement, Total (TOT) said it "will have to unwind all related operations" before November 4, unless it's granted a specific waiver by US authorities that would protect it against sanctions.

In a deal first signed in late 2016, Total agreed to operate the South Pars project with a stake of 50.1%. Its partners in the project are Chinese state oil company CNPC, and Iran's Petropars.

Total's decision comes after President Donald Trump announced last week that he was pulling the United States out of a landmark 2015 nuclear deal with Iran and reintroducing sanctions.

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