OMV SHOWS OPTIMISM ON NABUCCO, UNDERSTANDING ON

C O N F I D E N T I A L VIENNA 001673 SIPDIS E.O. 12958: DECL: 11/14/2018 TAGS: ENRG PREL ETTC EPET AU SUBJECT: OMV SHOWS OPTIMISM ON NABUCCO, UNDERSTANDING ON IRAN REF: VIENNA 1580 Classified By: Ambassador David F Girard-diCarlo, for reasons 1.4 b and d. ¶1. (C) In a brief aside at a November 12 event, OMV CEO Wolfgang Ruttenstorfer told the Ambassador the company has become guardedly optimistic on Nabucco and that it understands the USG position on energy deals with Iran in the current environment. ¶2. (C) Regarding the planned Nabucco gas pipeline, Ruttenstorfer evinced optimism from his recent discussions in Turkmenistan and elsewhere in the Caspian Basin. Like other observers, the company is cautiously optimistic that events are moving in the right direction. Ruttenstorfer said that financing is already starting to come together (reftel): the consortium is close to securing 50% financing for the EUR 8 billion construction cost. ¶3. (C) On Iran, Ruttenstorfer reiterated his position that the company understands the need not to pursue energy deals with Iran in the sensitive current diplomatic environment. "We will not embarrass you," he stated clearly. Like his official GOA colleagues, Ruttenstorfer does seek a tacit understanding that Europe will need gas from Iran over the long term, but says the company can afford to wait until the political situation improves. Ruttenstorfer also opined that the current Iranian regime makes waiting easier through its unpredictable, anti-market behavior. GIRARD-DICARLO