Identifier
Created
Classification
Origin
08DOHA605
2008-08-24 12:59:00
CONFIDENTIAL
Embassy Doha
Cable title:
TOTAL DROPS IRAN LNG PROJECT BECAUSE OF SANCTIONS,
how-toVZCZCXRO7380 PP RUEHBC RUEHDE RUEHDIR RUEHKUK DE RUEHDO #0605 2371259 ZNY CCCCC ZZH P 241259Z AUG 08 FM AMEMBASSY DOHA TO RUEHC/SECSTATE WASHDC PRIORITY 8169 INFO RUCNIRA/IRAN COLLECTIVE PRIORITY RUEHFR/AMEMBASSY PARIS PRIORITY 0168 RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY RHMFISS/DEPT OF ENERGY WASHINGTON DC PRIORITY
C O N F I D E N T I A L DOHA 000605
SIPDIS
E.O. 12958: DECL: 08/24/2018
TAGS: ENRG EINV EPET QA IR
SUBJECT: TOTAL DROPS IRAN LNG PROJECT BECAUSE OF SANCTIONS,
POLITICAL RISK
REF: PARIS 1065
Classified By: Amb. Joseph LeBaron, reasons 1.4 (b) and (d).
C O N F I D E N T I A L DOHA 000605
SIPDIS
E.O. 12958: DECL: 08/24/2018
TAGS: ENRG EINV EPET QA IR
SUBJECT: TOTAL DROPS IRAN LNG PROJECT BECAUSE OF SANCTIONS,
POLITICAL RISK
REF: PARIS 1065
Classified By: Amb. Joseph LeBaron, reasons 1.4 (b) and (d).
1. (C) Total-Qatar's Marketing Manager, Jean-Francois Hery
(protect),told Econoff August 18 that Total's July decision
to pull out of a planned liquefied natural gas (LNG) project
in Iran's South Pars field was due not only to political
uncertainty (as reported in press) but also because sanctions
on Iran were raising the cost of doing business and making
the project economically unfeasible. He explained that the
sanctions disqualifying American and some other companies
from working in Iran made it harder to find the myriad of
contractors needed for the LNG project, ultimately raising
the costs to Total.
2. (C) Separately, Hery opined that Iran still has the
political will to pursue LNG export projects despite its
continued strong domestic gas demand, though it lacked the
technical capacity and investment protections needed to
attract suitable international partners. He has heard from
colleagues that Iran is concerned Qatar is "taking their gas"
because of the impressive and exponential growth in Qatar's
gas production capacity. (Note: Qatar and Iran share the
largest non-associated gas field in the world and when Qatar
began gas extraction over a decade ago, all of its wells were
placed right on the border with Iran).
LeBaron
SIPDIS
E.O. 12958: DECL: 08/24/2018
TAGS: ENRG EINV EPET QA IR
SUBJECT: TOTAL DROPS IRAN LNG PROJECT BECAUSE OF SANCTIONS,
POLITICAL RISK
REF: PARIS 1065
Classified By: Amb. Joseph LeBaron, reasons 1.4 (b) and (d).
1. (C) Total-Qatar's Marketing Manager, Jean-Francois Hery
(protect),told Econoff August 18 that Total's July decision
to pull out of a planned liquefied natural gas (LNG) project
in Iran's South Pars field was due not only to political
uncertainty (as reported in press) but also because sanctions
on Iran were raising the cost of doing business and making
the project economically unfeasible. He explained that the
sanctions disqualifying American and some other companies
from working in Iran made it harder to find the myriad of
contractors needed for the LNG project, ultimately raising
the costs to Total.
2. (C) Separately, Hery opined that Iran still has the
political will to pursue LNG export projects despite its
continued strong domestic gas demand, though it lacked the
technical capacity and investment protections needed to
attract suitable international partners. He has heard from
colleagues that Iran is concerned Qatar is "taking their gas"
because of the impressive and exponential growth in Qatar's
gas production capacity. (Note: Qatar and Iran share the
largest non-associated gas field in the world and when Qatar
began gas extraction over a decade ago, all of its wells were
placed right on the border with Iran).
LeBaron