Identifier
Created
Classification
Origin
07ROME69
2007-01-12 06:50:00
SECRET//NOFORN
Embassy Rome
Cable title:  

IRAN SOLICITS ENI INVESTMENT IN AZADEGAN AND SOUTH

Tags:  ETTC EPET ENRG PREL IR IT 
pdf how-to read a cable
VZCZCXRO6347
OO RUEHAG RUEHROV
DE RUEHRO #0069 0120650
ZNY SSSSS ZZH
O 120650Z JAN 07
FM AMEMBASSY ROME
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6910
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
S E C R E T ROME 000069 

SIPDIS

NOFORN
SIPDIS

E.O. 12958: DECL: 01/10/2027
TAGS: ETTC EPET ENRG PREL IR IT
SUBJECT: IRAN SOLICITS ENI INVESTMENT IN AZADEGAN AND SOUTH
PARS OIL FIELDS

REF: A. 06 ROME 3159


B. 06 STATE 179840

C. 06 ROME 452

Classified By: Ambassador Ronald P. Spogli for reasons 1.4 (b) and (d)

S E C R E T ROME 000069

SIPDIS

NOFORN
SIPDIS

E.O. 12958: DECL: 01/10/2027
TAGS: ETTC EPET ENRG PREL IR IT
SUBJECT: IRAN SOLICITS ENI INVESTMENT IN AZADEGAN AND SOUTH
PARS OIL FIELDS

REF: A. 06 ROME 3159


B. 06 STATE 179840

C. 06 ROME 452

Classified By: Ambassador Ronald P. Spogli for reasons 1.4 (b) and (d)


1. (U) This is an action request. Please see paragraph 5.


2. (S/NF) Summary. Eni CEO Paolo Scaroni told the
Ambassador that the Iranian Energy Minister has offered Eni
investment opportunities in Iran's South Pars and Azadegan
oil fields. Scaroni said Eni is interested in additional
investment in Iran so long as there are no multilateral
sanctions against Iran in effect, Iran pays money owed Eni
under existing contracts, and the investments are structured
so that Eni's return is based on world oil and gas prices.
The Ambassador made clear USG opposition to any investment
that supports the current Iranian government. Scaroni will
be in Washington February four and five and is willing to
meet with Washington officials to discuss Eni's interest in
Iran. End Summary.


3. (S/NF) Paolo Scaroni, CEO of Eni, the oil and gas
parastatal 30 percent owned by the GOI, met with the
Ambassador January 9 to discuss possible additional Eni
investments in Iran. Scaroni said that during a meeting on
the margins of an OPEC conference, the Iranian Energy
Minister offered Eni investment opportunities in the South
Pars and Azadegan oil fields. (Note: As reported ref C, Eni
has invested 2.5 billion dollars in Iran since the 1950's,
and has a 60 percent interest in phases four and five of the
South Pars gas field. End note.) Scaroni said he told the
Energy Minister Eni would be interested in additional
investment in Iran if (i) Eni is paid the "hundreds of
millions" owed it by the National Iranian Oil Company (NIOC)
under existing contracts, (ii) the investments are structured
so that Eni's return would be based on world oil/gas prices,
not a set amount per unit produced; and (iii) no
international sanctions against Iran are in place.


4. (S/NF) Scaroni said he has briefed PM Prodi and FM D'Alema
on Iran's offer, adding that Eni wants to be transparent and
open with the USG as it considers the Iranian offer. He
noted that Iran is the only viable alternative to Russia for
meeting Europe's natural gas needs. The Ambassador told
Scaroni that the USG opposes commercial activities with Iran
that strengthen the regime's hand. Scaroni mentioned that he
would be in Washington February 4-5 to participate in an
Aspen Institute forum on energy and energy security and
agreed with the Ambassador's suggestion that he should meet
with USG officials to discuss Iran's proposal to Eni


5. (S/NF) Comment and action request. Scaroni's February
trip to Washington provides us with an excellent opportunity
to make clear to Eni the consequences of pursuing additional
investments in Iran's energy sector. Action request: Post
requests Department guidance on the availability of senior
USG officials to meet with Scaroni on February four or five.
Embassy POC for coordination with Scaroni's office is Energy
Officer David Whiting XXXXXXXXXXXX End comment
and action requested.
SPOGLI