Identifier
Created
Classification
Origin
07VIENNA2851
2007-11-27 08:01:00
CONFIDENTIAL
Embassy Vienna
Cable title:
OMV'S IRAN DEAL: CRACKS IN THE ARMOR?
how-toVZCZCXRO6296 PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR DE RUEHVI #2851 3310801 ZNY CCCCC ZZH P 270801Z NOV 07 FM AMEMBASSY VIENNA TO RUEHC/SECSTATE WASHDC PRIORITY 9068 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY RUEHUNV/USMISSION UNVIE VIENNA PRIORITY 0422
C O N F I D E N T I A L VIENNA 002851
SIPDIS
SIPDIS
E.O. 12958: DECL: 11/27/2017
TAGS: ENRG PREL PGOV EPET EINV AU IR
SUBJECT: OMV'S IRAN DEAL: CRACKS IN THE ARMOR?
REF: A) VIENNA 2829 B) VIENNA 2815
Classified By: Econ/Pol Counselor Dean Yap for reasons 1.4 (b) and (d)
C O N F I D E N T I A L VIENNA 002851
SIPDIS
SIPDIS
E.O. 12958: DECL: 11/27/2017
TAGS: ENRG PREL PGOV EPET EINV AU IR
SUBJECT: OMV'S IRAN DEAL: CRACKS IN THE ARMOR?
REF: A) VIENNA 2829 B) VIENNA 2815
Classified By: Econ/Pol Counselor Dean Yap for reasons 1.4 (b) and (d)
1. (U) According to Austrian press, Minister of Economics
Martin Bartenstein told the November 22 European Competition
Council that Iranian gas was a "no-go" for the Nabucco
pipeline. Bartenstein reportedly noted that USG support for
Nabucco depended on excluding Iranian gas from the Euro 5
billion project. At the Council, Energy Commissioner
Piebalgs characterized Bartenstein's comments as "too hard,"
arguing that Iranian gas could become part of Nabucco,
following a political resolution of Iran's
controversial nuclear program. An OMV spokesman also quickly
refuted Bartenstein, stressing that the company would not
exclude any potential Nabucco sources, "as long as the legal
framework allows it."
2. (C) During a November 22 conversation with UNVIE
Ambassador Schulte, OMV CEO Wolfgang Ruttenstorfer reiterated
(ref B) that OMV had substantially slowed down its
interactions with the Iranian regime since signing the April
2007 Heads of Agreement to participate in the development of
the South Pars 12 field. Ruttenstorfer said he did see any
new agreements with Iran "in the next two years." Moreover,
with German Chancellor MERKEL calling for German companies to
reduce their commercial contacts in Iran, Ruttenstorfer
opined that this would ultimately signal a slowdown in
Austro-Iranian commercial ties.
3. (C) Ruttenstorfer noted that at a recent meeting of
European energy companies, most executives predicted that
there would be a noticeable reduction in European energy
investments in Iran in the near future. There was reportedly
a growing sentiment that EU sanctions on oil and gas
investments might be desirable to "level the playing field"
for all companies.
Comment
--------------
4. (C) Minister Bartenstein's public comments follow
Ambassador McCaw's November 20 farewell call on Chancellor
Gusenbauer (ref A),in which she repeated the USG's strong
objection to OMV's South Pars deal with the Iranian regime.
OMV and the GoA undoubtedly want to keep the longer-term
option of accessing Iranian gas open. However, there appears
to be a growing realization among some in Vienna that now is
not the time to be deepening Austria's commercial presence in
Iran.
Kilner
SIPDIS
SIPDIS
E.O. 12958: DECL: 11/27/2017
TAGS: ENRG PREL PGOV EPET EINV AU IR
SUBJECT: OMV'S IRAN DEAL: CRACKS IN THE ARMOR?
REF: A) VIENNA 2829 B) VIENNA 2815
Classified By: Econ/Pol Counselor Dean Yap for reasons 1.4 (b) and (d)
1. (U) According to Austrian press, Minister of Economics
Martin Bartenstein told the November 22 European Competition
Council that Iranian gas was a "no-go" for the Nabucco
pipeline. Bartenstein reportedly noted that USG support for
Nabucco depended on excluding Iranian gas from the Euro 5
billion project. At the Council, Energy Commissioner
Piebalgs characterized Bartenstein's comments as "too hard,"
arguing that Iranian gas could become part of Nabucco,
following a political resolution of Iran's
controversial nuclear program. An OMV spokesman also quickly
refuted Bartenstein, stressing that the company would not
exclude any potential Nabucco sources, "as long as the legal
framework allows it."
2. (C) During a November 22 conversation with UNVIE
Ambassador Schulte, OMV CEO Wolfgang Ruttenstorfer reiterated
(ref B) that OMV had substantially slowed down its
interactions with the Iranian regime since signing the April
2007 Heads of Agreement to participate in the development of
the South Pars 12 field. Ruttenstorfer said he did see any
new agreements with Iran "in the next two years." Moreover,
with German Chancellor MERKEL calling for German companies to
reduce their commercial contacts in Iran, Ruttenstorfer
opined that this would ultimately signal a slowdown in
Austro-Iranian commercial ties.
3. (C) Ruttenstorfer noted that at a recent meeting of
European energy companies, most executives predicted that
there would be a noticeable reduction in European energy
investments in Iran in the near future. There was reportedly
a growing sentiment that EU sanctions on oil and gas
investments might be desirable to "level the playing field"
for all companies.
Comment
--------------
4. (C) Minister Bartenstein's public comments follow
Ambassador McCaw's November 20 farewell call on Chancellor
Gusenbauer (ref A),in which she repeated the USG's strong
objection to OMV's South Pars deal with the Iranian regime.
OMV and the GoA undoubtedly want to keep the longer-term
option of accessing Iranian gas open. However, there appears
to be a growing realization among some in Vienna that now is
not the time to be deepening Austria's commercial presence in
Iran.
Kilner