Identifier
Created
Classification
Origin
07BAGHDAD2616
2007-08-07 10:16:00
CONFIDENTIAL
Embassy Baghdad
Cable title:  

MINISTER OF OIL SHAHRASTANI'S TRIP TO MOSCOW

Tags:  ECON ENRG EPET IZ 
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VZCZCXRO3257
PP RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #2616 2191016
ZNY CCCCC ZZH
P 071016Z AUG 07
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 2658
INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY
RUEHMO/AMEMBASSY MOSCOW PRIORITY 0081
RHEHAAA/WHITE HOUSE WASHINGTON DC//NSC// PRIORITY
RHEBAAA/USDOE WASHDC PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0613
C O N F I D E N T I A L BAGHDAD 002616 

SIPDIS

SIPDIS

E.O. 12958: DECL: 08/08/2017
TAGS: ECON ENRG EPET IZ
SUBJECT: MINISTER OF OIL SHAHRASTANI'S TRIP TO MOSCOW

REF: USUN NEW YORK 642

Classified By: Economic Minister Charles P. Ries for reasons 1.4 (b) an
d (d)

C O N F I D E N T I A L BAGHDAD 002616

SIPDIS

SIPDIS

E.O. 12958: DECL: 08/08/2017
TAGS: ECON ENRG EPET IZ
SUBJECT: MINISTER OF OIL SHAHRASTANI'S TRIP TO MOSCOW

REF: USUN NEW YORK 642

Classified By: Economic Minister Charles P. Ries for reasons 1.4 (b) an
d (d)


1. (C) EMIN telephoned Minister of Oil Shahrastani August 6
to ask him what his objectives would be on a trip the press
is reporting he would be taking to Moscow August 7-10.
Despite a bad mobile phone connection, Shahrastani explained
that he will now first accompany the Prime Minister to Turkey
August 7 and then continue to Moscow later in the week.
Shahrastani said he expected the Russians to use the occasion
of his visit to "announce" their intention to offer Iraq debt
relief on Paris Club terms, even though he is not the
responsible minister and Minister of Finance Bayan Jabr is on
standby expecting to travel to Russia soon to finalize the
debt relief package. Shahrastani said that the Russians
want, likely for domestic political reasons, to announce the
debt relief in the context of a discussion of oil exploration
in Iraq.


2. (C) On oil exploration, Shahrastani assured EMIN that he
will tell the Russian Government and Russian oil companies
that he would "encourage" Russian companies to bid on
projects in partnership with the Iraqi National Oil Company
or to develop acreage that may be released for production
sharing agreements (PSA's). But he promised to be clear to
the Russians that all project awards would be tendered in
accordance with international standards and that no promises
of success could be made. On the Saddam-era contracts,
Shahrastani said he planned to be clear to the Russians that
they would not be valid.


3. (C) Comment: We expect Shahrastani told us what he knew
we wanted to hear on the objectivity with which Iraq would
promise to award future oil opportunities, but he clearly
noted our interest in calling and it may make him more
cautious in promising the Russians an inside track. On debt
relief, the Russians have been sending signals for some time
that they are ready to settle, and a visit by the Iraqi
Minister of Oil provides good cover to do so, which is no
doubt why the Russians have invited him.

CROCKER

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