Identifier
Created
Classification
Origin
07ABUDHABI1306
2007-08-06 14:25:00
CONFIDENTIAL
Embassy Abu Dhabi
how-toVZCZCXRO2383 PP RUEHDE DE RUEHAD #1306 2181425 ZNY CCCCC ZZH P 061425Z AUG 07 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC PRIORITY 9497 INFO RUEHVI/AMEMBASSY VIENNA PRIORITY 0153 RUEHDE/AMCONSUL DUBAI PRIORITY 7232 RUEHUNV/USMISSION UNVIE VIENNA PRIORITY 0027 RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
C O N F I D E N T I A L ABU DHABI 001306
SIPDIS
SIPDIS
STATE FOR NEA/IR, NEA/ARP, EEB/ESC/TFS
TREASURY FOR U/S LEVEY
VIENNA FOR AMB MCCAW, S.KILNER, PKAPLAN
USMISSION VIENNA FOR AMB SCHULTE, E. TAVAKOLI
E.O. 12958: DECL: 08/06/2017
TAGS: ENRG EPET ETTC PREL IR AU AE
SUBJECT: OMV AND THE UAE
REF: AUGUST 3 TAVAKOLI-QUINN E-MAIL
Classified By: CDA Martin Quinn for reasons 1.4 (b),(d).
1 . (C) On August 6, A/DCM met with Khalifa Al-Kindi,
Managing Director of the Abu Dhabi Investment Council (ADIC)
and Board Member of the Abu Dhabi Government owned
International Petroleum Investment Company (IPIC) to discuss
the Austrian firm OMV's (17.6 percent owned by IPIC) gas deal
with Iran. A/DCM stressed that, with Iran's defiance of UN
Security Council Resolutions, now was not the time for
business as usual and that a major hydrocarbon deal would
send the wrong message to the government of Iran.
2. (C) Al-Kindi stated that he had not been aware of OMV's
deal with the Iranians. Normally, he said IPIC's board did
not follow the activities of companies in the portfolio on a
daily basis, but reviewed them at board meetings. He told
A/DCM that he had tried to call other board members and
IPIC's managing director about the issue, but all were out of
the country and not answering their cell phones. Al-Kindi
stated that IPIC's representative on OMV's board had been the
previous managing director. He believes that IPIC's new
managing director, Khadem Al-Qubaisi, would have assumed the
same seat. Al-Kindi asked whether the USG had approached
either OMV or the Government of Austria to express our
concern about this deal. A/DCM explained that we would be
approaching the company in the next day or so. (Note: OMV is
also 31.5% owned by the Austrian Government's Investment and
Privatization Agency OIAG. End Note.)
3. (C) A/DCM noted that he understood that neither the Abu
Dhabi Investment Authority (ADIA) nor ADIC invested in Iran
and that we hoped IPIC would use its status as a large
shareholder in OMV to express concern about moving forward
with this deal. Al-Kindi confirmed that neither investment
group invested in Iran. He promised to get back to A/DCM
with any further information, but stressed that it was likely
that no decision could be made or more information generated
before key officials returned to Abu Dhabi in late August.
4. (C) Comment: Unfortunately both the Chairman of the Board
of IPIC, Minister of Presidential Affairs Sheikh Mansour bin
Zayed Al-Nahyan, and IPIC Managing Director Khadem Al-Qubaisi
are out of the country as are most of IPIC's board members.
As a primarily financial investor, IPIC generally does not
participate in day-to-day management of companies, but does
play an active role on company boards. End Comment.
QUINN
SIPDIS
SIPDIS
STATE FOR NEA/IR, NEA/ARP, EEB/ESC/TFS
TREASURY FOR U/S LEVEY
VIENNA FOR AMB MCCAW, S.KILNER, PKAPLAN
USMISSION VIENNA FOR AMB SCHULTE, E. TAVAKOLI
E.O. 12958: DECL: 08/06/2017
TAGS: ENRG EPET ETTC PREL IR AU AE
SUBJECT: OMV AND THE UAE
REF: AUGUST 3 TAVAKOLI-QUINN E-MAIL
Classified By: CDA Martin Quinn for reasons 1.4 (b),(d).
1 . (C) On August 6, A/DCM met with Khalifa Al-Kindi,
Managing Director of the Abu Dhabi Investment Council (ADIC)
and Board Member of the Abu Dhabi Government owned
International Petroleum Investment Company (IPIC) to discuss
the Austrian firm OMV's (17.6 percent owned by IPIC) gas deal
with Iran. A/DCM stressed that, with Iran's defiance of UN
Security Council Resolutions, now was not the time for
business as usual and that a major hydrocarbon deal would
send the wrong message to the government of Iran.
2. (C) Al-Kindi stated that he had not been aware of OMV's
deal with the Iranians. Normally, he said IPIC's board did
not follow the activities of companies in the portfolio on a
daily basis, but reviewed them at board meetings. He told
A/DCM that he had tried to call other board members and
IPIC's managing director about the issue, but all were out of
the country and not answering their cell phones. Al-Kindi
stated that IPIC's representative on OMV's board had been the
previous managing director. He believes that IPIC's new
managing director, Khadem Al-Qubaisi, would have assumed the
same seat. Al-Kindi asked whether the USG had approached
either OMV or the Government of Austria to express our
concern about this deal. A/DCM explained that we would be
approaching the company in the next day or so. (Note: OMV is
also 31.5% owned by the Austrian Government's Investment and
Privatization Agency OIAG. End Note.)
3. (C) A/DCM noted that he understood that neither the Abu
Dhabi Investment Authority (ADIA) nor ADIC invested in Iran
and that we hoped IPIC would use its status as a large
shareholder in OMV to express concern about moving forward
with this deal. Al-Kindi confirmed that neither investment
group invested in Iran. He promised to get back to A/DCM
with any further information, but stressed that it was likely
that no decision could be made or more information generated
before key officials returned to Abu Dhabi in late August.
4. (C) Comment: Unfortunately both the Chairman of the Board
of IPIC, Minister of Presidential Affairs Sheikh Mansour bin
Zayed Al-Nahyan, and IPIC Managing Director Khadem Al-Qubaisi
are out of the country as are most of IPIC's board members.
As a primarily financial investor, IPIC generally does not
participate in day-to-day management of companies, but does
play an active role on company boards. End Comment.
QUINN