French oil firm chief questioned on Iran deal

PARIS -- The new chief executive of oil giant Total SA was held for questioning yesterday in an investigation into the group's activities in Iran, the latest legal challenge for France's biggest company and its embattled chief.

Christophe de Margerie took over as CEO in February of a company facing sinking profits amid lower hydrocarbon output, rising exploration costs, and oil prices down from their record highs.

French financial police are investigating whether Total paid bribes to win a contract to develop the South Pars gas field in the Persian Gulf in 1997, among other allegations of wrongdoing, according to judicial officials who spoke on condition they not be identified because of laws that details of investigations be kept secret.

De Margerie, who was head of exploration and production of Total predecessor TotalFina at the time of the Iran deal, was being questioned with two other Total executives, said company spokesman Paul Floren. According to French law, they can be kept in custody by investigators for up to 48 hours.

Floren said the company stands behind the officials.

The probe follows a tip from authorities in Switzerland, officials have said.