Identifier
Created
Classification
Origin
07VIENNA1054
2007-04-23 14:39:00
CONFIDENTIAL
Embassy Vienna
Cable title:
OMV CONFIRMS GAS DEAL WITH IRAN
how-toVZCZCXRO3813 OO RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR DE RUEHVI #1054 1131439 ZNY CCCCC ZZH O 231439Z APR 07 FM AMEMBASSY VIENNA TO RUEHC/SECSTATE WASHDC IMMEDIATE 7083 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE IMMEDIATE
C O N F I D E N T I A L VIENNA 001054
SIPDIS
SIPDIS
E.O. 12958: DECL: 04/23/2017
TAGS: ENRG EPET EINV ETTC AU IR
SUBJECT: OMV CONFIRMS GAS DEAL WITH IRAN
REF: A) VIENNA 728 B) VIENNA 701 C) 05 VIENNA 3490
Classified By: Deputy Chief of Mission Scott F. Kilner for reasons 1.4
(b) and (d)
C O N F I D E N T I A L VIENNA 001054
SIPDIS
SIPDIS
E.O. 12958: DECL: 04/23/2017
TAGS: ENRG EPET EINV ETTC AU IR
SUBJECT: OMV CONFIRMS GAS DEAL WITH IRAN
REF: A) VIENNA 728 B) VIENNA 701 C) 05 VIENNA 3490
Classified By: Deputy Chief of Mission Scott F. Kilner for reasons 1.4
(b) and (d)
1. (SBU) OMV Spokesman Thomas Huemer confirmed to us on
April 23 that the Austrian energy company had signed a "Heads
of Agreement" with the National Iranian Oil Company (NIOC) to
participate in the further development of the South Pars Gas
Field in the Persian Gulf. Huemer added that Iranian press
reports that the deal was worth $30 billion were
"speculative." OMV would not be able to comment on the
magnitude of the deal until it completes exploration and
feasibility studies. Huemer denied Iranian press reports
that Iran would deliver 5 bcm annually to the Nabucco
pipeline.
2. (U) In an April 21 press statement, OMV noted that
Iranian gas from the South Pars project could be a source of
supply for OMV's planned LNG regasification facility in
Croatia. This facility should begin operations in 2011/2012.
Austrian press reported that OMV would hold 10% in the South
Pars project.
3. (U) OMV signed an oil exploration contract with NIOC in
2001. In 2005, OMV reported its first successful exploration
well in the Mehr Block (ref C),in which it holds a 34% share
in a consortium that also includes Spain's Repsol (33%) and
Chile's Sipetrol (33%). In February 2007, the NIOC
categorized the field as "commercially viable."
Comment
--------------
4. (C) Senior OMV officials have repeatedly told us (refs A
and B) that they would prefer not to use Iranian gas for the
Euro 4.6 billion Nabucco pipeline project. However, OMV has
never before revealed its interest in delivering Iranian LNG
from South Pars to Europe. We raised our concerns on April
23 with Thomas Wieser, the Ministry of Finance's Director
General for Economic Policy and Financial Markets during a
previously scheduled meeting. We have requested meetings
with senior level Foreign Ministry officials and OMV
executives to convey our strong disapproval of the OMV-NIOC
deal.
KILNER
SIPDIS
SIPDIS
E.O. 12958: DECL: 04/23/2017
TAGS: ENRG EPET EINV ETTC AU IR
SUBJECT: OMV CONFIRMS GAS DEAL WITH IRAN
REF: A) VIENNA 728 B) VIENNA 701 C) 05 VIENNA 3490
Classified By: Deputy Chief of Mission Scott F. Kilner for reasons 1.4
(b) and (d)
1. (SBU) OMV Spokesman Thomas Huemer confirmed to us on
April 23 that the Austrian energy company had signed a "Heads
of Agreement" with the National Iranian Oil Company (NIOC) to
participate in the further development of the South Pars Gas
Field in the Persian Gulf. Huemer added that Iranian press
reports that the deal was worth $30 billion were
"speculative." OMV would not be able to comment on the
magnitude of the deal until it completes exploration and
feasibility studies. Huemer denied Iranian press reports
that Iran would deliver 5 bcm annually to the Nabucco
pipeline.
2. (U) In an April 21 press statement, OMV noted that
Iranian gas from the South Pars project could be a source of
supply for OMV's planned LNG regasification facility in
Croatia. This facility should begin operations in 2011/2012.
Austrian press reported that OMV would hold 10% in the South
Pars project.
3. (U) OMV signed an oil exploration contract with NIOC in
2001. In 2005, OMV reported its first successful exploration
well in the Mehr Block (ref C),in which it holds a 34% share
in a consortium that also includes Spain's Repsol (33%) and
Chile's Sipetrol (33%). In February 2007, the NIOC
categorized the field as "commercially viable."
Comment
--------------
4. (C) Senior OMV officials have repeatedly told us (refs A
and B) that they would prefer not to use Iranian gas for the
Euro 4.6 billion Nabucco pipeline project. However, OMV has
never before revealed its interest in delivering Iranian LNG
from South Pars to Europe. We raised our concerns on April
23 with Thomas Wieser, the Ministry of Finance's Director
General for Economic Policy and Financial Markets during a
previously scheduled meeting. We have requested meetings
with senior level Foreign Ministry officials and OMV
executives to convey our strong disapproval of the OMV-NIOC
deal.
KILNER