IRAN SANCTIONS ACT DEMARCHE DELIVERED TO NORWAY

UNCLAS OSLO 000098 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ETTC PREL ENRG EPET IR NO SUBJECT: IRAN SANCTIONS ACT DEMARCHE DELIVERED TO NORWAY REF: SECSTATE 10650 AND PREVIOUS ¶1. (SBU) Deputy Pol/Econ Counselor delivered reftel points on Norsk Hydro's investment in Iran's Anaran oilfield on January 31 to Norsk Hydro Senior Vice-President Tor Steinum and on February 1 to Ministry of Foreign Affairs Energy Advisor Janne Julsrud. Hydro's Steinum affirmed that the company's contractual arrangements with the Iranians called for delivery of a development plan for Anaran in April. He added that progress on the Anaran project was generally slow, but Hydro was still working to meet the April contractual deadline for finalizing the plan. There was a chance that this deadline could slip, but that would require Iranian consent. Steinum indicated that his colleague, Senior VP Torgeir Kydland, would be prepared to discuss the company's activities in Iran directly with Washington interlocutors when he visits later this month. (Note: Kydland is traveling until next week and was unavailable for the meeting. Probable timing for his trip to Washington is the last week of February. End note.) ¶2. (SBU) MFA energy advisor Julsrud reiterated the GON position that it does not generally interfere in the commercial activities of state-owned or controlled companies, but added that the GON maintains an active dialogue with Hydro on a range of matters, Iran included. She indicated that the GON has advised the company of the risks of doing business in Iran. ¶3. (SBU) Neither Steinum nor Julsrud could predict how the proposed Statoil-Hydro merger might affect Norwegian petroleum investments in Iran. Steinum said that Hydro was carrying on business as usual until the merger is approved and finalized, but he thought that Hydro's ongoing projects in Iran would be absorbed into the new company. WHITNEY