Identifier
Created
Classification
Origin
08BEIJING4569
2008-12-17 09:05:00
CONFIDENTIAL
Embassy Beijing
Cable title:
PRC/IRAN: CNOOC-IRAN COOPERATION IN PRELIMINARY
how-toVZCZCXRO8217 OO RUEHBC RUEHCN RUEHDE RUEHDIR RUEHGH RUEHKUK RUEHVC DE RUEHBJ #4569 3520905 ZNY CCCCC ZZH O 170905Z DEC 08 FM AMEMBASSY BEIJING TO RUEHC/SECSTATE WASHDC IMMEDIATE 1435 INFO RUEHOO/CHINA POSTS COLLECTIVE IMMEDIATE RUCNIRA/IRAN COLLECTIVE IMMEDIATE RUEHRL/AMEMBASSY BERLIN IMMEDIATE 1735 RUEHLO/AMEMBASSY LONDON IMMEDIATE 3461 RUEHFR/AMEMBASSY PARIS IMMEDIATE 4465 RUEHRO/AMEMBASSY ROME IMMEDIATE 1027 RUEAIIA/CIA WASHINGTON DC IMMEDIATE RHEHNSC/NSC WASHDC IMMEDIATE RUCPDOC/DEPT OF COMMERCE WASHDC IMMEDIATE RHEBAAA/DEPT OF ENERGY WASHINGTON DC IMMEDIATE RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE
C O N F I D E N T I A L BEIJING 004569
SENSITIVE
SIPDIS
STATE FOR EAP/CM, NEA/IR, EEB/ESC, INR/EAP, INR/NEA
E.O. 12958: DECL: 12/17/2033
TAGS: ECON ENRG EPET EINV PREL PARM PTER MNUC POL
IR, CH
SUBJECT: PRC/IRAN: CNOOC-IRAN COOPERATION IN PRELIMINARY
STAGE, COMMERCIALLY DRIVEN
REF: STATE 125576
Classified By: Economic Minister Counselor Robert Luke for reasons 1.4
b/d.
Summary
-------
C O N F I D E N T I A L BEIJING 004569
SENSITIVE
SIPDIS
STATE FOR EAP/CM, NEA/IR, EEB/ESC, INR/EAP, INR/NEA
E.O. 12958: DECL: 12/17/2033
TAGS: ECON ENRG EPET EINV PREL PARM PTER MNUC POL
IR, CH
SUBJECT: PRC/IRAN: CNOOC-IRAN COOPERATION IN PRELIMINARY
STAGE, COMMERCIALLY DRIVEN
REF: STATE 125576
Classified By: Economic Minister Counselor Robert Luke for reasons 1.4
b/d.
Summary
--------------
1. (C) In a discussion with Economic Minister-Counselor,
CNOOC's External Affairs Section Director Lu Xiaofeng
emphasized that CNOOC's cooperation with Iran is driven by
commercial interests and stressed that CNOOC has no intention
of becoming entwined in political issues. He reiterated that
CNOOC complies with international and Chinese laws as well as
UN Security Council resolutions on Iran. Lu claimed that
CNOOC's cooperation with Iran is still in a preliminary stage
and pointed out that CNOOC has not yet made any substantial
investments in Iran. CNOOC is currently conducting an
internal evaluation to analyze potential risks of cooperation
with Iran, he reported. End Summary.
CNOOC activities in Iran driven by commercial interests
-------------- --------------
2. (C) Economic Minister-Counselor delivered points in reftel
to China National Offshore Oil Corporation (CNOOC) External
Affairs Unit Director Lu Xiaofeng on December 16. Lu assured
us that he will convey the points to CNOOC's senior
management. He stressed that CNOOC will continue to comply
fully with Chinese and international laws, Chinese foreign
policy, and UN Security Council resolutions on Iran, but
noted that "different entities have different interpretations
of the same issue." Lu explained that CNOOC's cooperation
with Iran has been based solely on commercial interests and
emphasized that CNOOC has no intention of becoming entwined
in political issues. In Lu's view, energy sector cooperation
with Iran is a normal part of CNOOC's business activities.
He asserted that "CNOOC is interested in any potentially
profitable project around the world." Econ Minister-Counselor
countered that adopting a business-as-usual approach to
investing in Iran's energy sector would expose CNOOC to
serious reputational and commercial risks, and would
certainly involve them in political issues.
Risks of cooperation with Iran undergoing internal review
-------------- --------------
3. (C) Lu claimed that CNOOC's cooperation with Iran is still
in a preliminary stage and pointed out that CNOOC has not yet
made any substantial investments in Iran. CNOOC is currently
conducting an internal evaluation to analyze potential risks
of conducting cooperation with Iran, he reported. (Note: Dow
Jones reported in mid-November, citing Iranian sources, that
the National Iranian Oil Corporation (NIOC) and CNOOC had
finalized a development plan for Iran's North Pars gas field,
but neither side has confirmed whether the development plan
has been signed. CNOOC and NIOC have been engaged in
negotiations on North Pars gas field development and the
construction of an LNG plant since 2006. End Note).
Randt
SENSITIVE
SIPDIS
STATE FOR EAP/CM, NEA/IR, EEB/ESC, INR/EAP, INR/NEA
E.O. 12958: DECL: 12/17/2033
TAGS: ECON ENRG EPET EINV PREL PARM PTER MNUC POL
IR, CH
SUBJECT: PRC/IRAN: CNOOC-IRAN COOPERATION IN PRELIMINARY
STAGE, COMMERCIALLY DRIVEN
REF: STATE 125576
Classified By: Economic Minister Counselor Robert Luke for reasons 1.4
b/d.
Summary
--------------
1. (C) In a discussion with Economic Minister-Counselor,
CNOOC's External Affairs Section Director Lu Xiaofeng
emphasized that CNOOC's cooperation with Iran is driven by
commercial interests and stressed that CNOOC has no intention
of becoming entwined in political issues. He reiterated that
CNOOC complies with international and Chinese laws as well as
UN Security Council resolutions on Iran. Lu claimed that
CNOOC's cooperation with Iran is still in a preliminary stage
and pointed out that CNOOC has not yet made any substantial
investments in Iran. CNOOC is currently conducting an
internal evaluation to analyze potential risks of cooperation
with Iran, he reported. End Summary.
CNOOC activities in Iran driven by commercial interests
-------------- --------------
2. (C) Economic Minister-Counselor delivered points in reftel
to China National Offshore Oil Corporation (CNOOC) External
Affairs Unit Director Lu Xiaofeng on December 16. Lu assured
us that he will convey the points to CNOOC's senior
management. He stressed that CNOOC will continue to comply
fully with Chinese and international laws, Chinese foreign
policy, and UN Security Council resolutions on Iran, but
noted that "different entities have different interpretations
of the same issue." Lu explained that CNOOC's cooperation
with Iran has been based solely on commercial interests and
emphasized that CNOOC has no intention of becoming entwined
in political issues. In Lu's view, energy sector cooperation
with Iran is a normal part of CNOOC's business activities.
He asserted that "CNOOC is interested in any potentially
profitable project around the world." Econ Minister-Counselor
countered that adopting a business-as-usual approach to
investing in Iran's energy sector would expose CNOOC to
serious reputational and commercial risks, and would
certainly involve them in political issues.
Risks of cooperation with Iran undergoing internal review
-------------- --------------
3. (C) Lu claimed that CNOOC's cooperation with Iran is still
in a preliminary stage and pointed out that CNOOC has not yet
made any substantial investments in Iran. CNOOC is currently
conducting an internal evaluation to analyze potential risks
of conducting cooperation with Iran, he reported. (Note: Dow
Jones reported in mid-November, citing Iranian sources, that
the National Iranian Oil Corporation (NIOC) and CNOOC had
finalized a development plan for Iran's North Pars gas field,
but neither side has confirmed whether the development plan
has been signed. CNOOC and NIOC have been engaged in
negotiations on North Pars gas field development and the
construction of an LNG plant since 2006. End Note).
Randt