Identifier
Created
Classification
Origin
07OSLO401
2007-04-19 13:35:00
CONFIDENTIAL
Embassy Oslo
Cable title:
AMBASSADOR RAISES IRAN SANCTIONS ACT CONCERNS WITH STATOIL CEO
how-toVZCZCXRO0603 RR RUEHDE DE RUEHNY #0401 1091335 ZNY CCCCC ZZH R 191335Z APR 07 FM AMEMBASSY OSLO TO RUEHC/SECSTATE WASHDC 5540 INFO RUEHZG/NATO EU COLLECTIVE RUEHHH/OPEC COLLECTIVE RUEHMO/AMEMBASSY MOSCOW 3954 RUEHUNV/USMISSION UNVIE VIENNA 0072 RUEATRS/DEPT OF TREASURY WASHINGTON DC RUCNDT/USMISSION USUN NEW YORK 0241
C O N F I D E N T I A L OSLO 000401
SIPDIS
SIPDIS
STATE FOR EUR/NB, ISN, EB, NEA, IO, VCI, P, T
TREASURY FOR TFI
E.O. 12958: DECL: 04/19/2017
TAGS: PREL, ENRG, EPET, ETTC, EFIN, KNNP, IR, NO
SUBJECT: AMBASSADOR RAISES IRAN SANCTIONS ACT CONCERNS WITH
STATOIL CEO
REF: A) STATE 46220 B) STATE 14071 C) STATE 10650 D)
OSLO 162 AND PREVIOUS
Classified By: Charge d'Affaires Kevin M. Johnson for reasons 1.4
b and d.
C O N F I D E N T I A L OSLO 000401
SIPDIS
SIPDIS
STATE FOR EUR/NB, ISN, EB, NEA, IO, VCI, P, T
TREASURY FOR TFI
E.O. 12958: DECL: 04/19/2017
TAGS: PREL, ENRG, EPET, ETTC, EFIN, KNNP, IR, NO
SUBJECT: AMBASSADOR RAISES IRAN SANCTIONS ACT CONCERNS WITH
STATOIL CEO
REF: A) STATE 46220 B) STATE 14071 C) STATE 10650 D)
OSLO 162 AND PREVIOUS
Classified By: Charge d'Affaires Kevin M. Johnson for reasons 1.4
b and d.
1. (C) The Ambassador raised USG concerns over Norwegian
petroleum firms' investments in Iran with Statoil CEO Helge
Lund over lunch on April 13. Although Statoil is not
considering expanding its limited investments in Iran and has
had a troubled history there (Lund's predecessor was forced
out in an Iranian bribery scandal),Lund stands to inherit
responsibility for an expanded Iranian portfolio once a
merger with Norway's second leading petroleum firm, Norsk
Hydro, is consummated. Hydro is much more actively engaged
in Iran, and the Ambassador and Embassy officers have
repeatedly conveyed USG and Iran Sanctions Act concerns to
top Hydro executives (ref D). Washington officials also
recently raised the issue directly with visiting Hydro
executives (ref A).
2. (C) Lund told the Ambassador he is legally constrained
from discussing substantive business and investment issues
with Hydro CEO Eivind Reiten while European Union and other
competition authorities review the proposed Statoil-Hydro
merger. He could not, therefore, comment directly on Hydro's
investments in Iran and the merged company's possible
position on them. Lund did acknowledge that he would
eventually be responsible to the merged company's Board and
shareholders for Iran and other investments, and that he
would take USG positions into account. He added that as a
general matter he thought engagement rather than sanctions is
a more effective strategy to bring about change, but he
recognized, without naming Iran specifically, that "there are
exceptions to that."
3. (C) Lund did offer assurances that Statoil had no
intention of expanding its own projects in Iran. Statoil's
focus is "only to complete the South Pars project," said
Lund. That in itself was a major challenge, as the project
has been plagued by delays, unreliable local partners, and
other problems. He implied that Statoil's Iran investments
had been nothing but a headache, having had a "huge impact"
on Statoil's finances and, alluding to the bribery scandal,
its management structure. He added confidentially that
Statoil is conducting a low profile, but insincere, dialogue
with Iranian authorities on future projects to forestall
potentially hostile actions against its current investments.
Lund justified the move by saying the company owed its
shareholders a duty to protect what remained of its Iranian
investments as best it could. He concluded that Statoil has
had and would continue a frank and transparent dialogue with
USG authorities on the Iran issue. "There will be no
surprises on our part," concluded Lund.
JOHNSON
SIPDIS
SIPDIS
STATE FOR EUR/NB, ISN, EB, NEA, IO, VCI, P, T
TREASURY FOR TFI
E.O. 12958: DECL: 04/19/2017
TAGS: PREL, ENRG, EPET, ETTC, EFIN, KNNP, IR, NO
SUBJECT: AMBASSADOR RAISES IRAN SANCTIONS ACT CONCERNS WITH
STATOIL CEO
REF: A) STATE 46220 B) STATE 14071 C) STATE 10650 D)
OSLO 162 AND PREVIOUS
Classified By: Charge d'Affaires Kevin M. Johnson for reasons 1.4
b and d.
1. (C) The Ambassador raised USG concerns over Norwegian
petroleum firms' investments in Iran with Statoil CEO Helge
Lund over lunch on April 13. Although Statoil is not
considering expanding its limited investments in Iran and has
had a troubled history there (Lund's predecessor was forced
out in an Iranian bribery scandal),Lund stands to inherit
responsibility for an expanded Iranian portfolio once a
merger with Norway's second leading petroleum firm, Norsk
Hydro, is consummated. Hydro is much more actively engaged
in Iran, and the Ambassador and Embassy officers have
repeatedly conveyed USG and Iran Sanctions Act concerns to
top Hydro executives (ref D). Washington officials also
recently raised the issue directly with visiting Hydro
executives (ref A).
2. (C) Lund told the Ambassador he is legally constrained
from discussing substantive business and investment issues
with Hydro CEO Eivind Reiten while European Union and other
competition authorities review the proposed Statoil-Hydro
merger. He could not, therefore, comment directly on Hydro's
investments in Iran and the merged company's possible
position on them. Lund did acknowledge that he would
eventually be responsible to the merged company's Board and
shareholders for Iran and other investments, and that he
would take USG positions into account. He added that as a
general matter he thought engagement rather than sanctions is
a more effective strategy to bring about change, but he
recognized, without naming Iran specifically, that "there are
exceptions to that."
3. (C) Lund did offer assurances that Statoil had no
intention of expanding its own projects in Iran. Statoil's
focus is "only to complete the South Pars project," said
Lund. That in itself was a major challenge, as the project
has been plagued by delays, unreliable local partners, and
other problems. He implied that Statoil's Iran investments
had been nothing but a headache, having had a "huge impact"
on Statoil's finances and, alluding to the bribery scandal,
its management structure. He added confidentially that
Statoil is conducting a low profile, but insincere, dialogue
with Iranian authorities on future projects to forestall
potentially hostile actions against its current investments.
Lund justified the move by saying the company owed its
shareholders a duty to protect what remained of its Iranian
investments as best it could. He concluded that Statoil has
had and would continue a frank and transparent dialogue with
USG authorities on the Iran issue. "There will be no
surprises on our part," concluded Lund.
JOHNSON