Identifier
Created
Classification
Origin
08VIENNA1883
2008-12-23 15:07:00
UNCLASSIFIED
Embassy Vienna
Cable title:
OMV, RWE Announce Trans-Caspian Pipeline Joint
how-toVZCZCXRO3666 RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG DE RUEHVI #1883 3581507 ZNR UUUUU ZZH R 231507Z DEC 08 FM AMEMBASSY VIENNA TO RUEHC/SECSTATE WASHDC 1755 INFO RHEBAAA/DEPT OF ENERGY WASHDC RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS VIENNA 001883
SIPDIS
E.O. 12958: N/A
TAGS: ENRG PGOV EPET AU
SUBJECT: OMV, RWE Announce Trans-Caspian Pipeline Joint
Venture; Says Nabucco Financing is Intact
REF: (A) VIENNA 1351; (B) VIENNA 1344
UNCLAS VIENNA 001883
SIPDIS
E.O. 12958: N/A
TAGS: ENRG PGOV EPET AU
SUBJECT: OMV, RWE Announce Trans-Caspian Pipeline Joint
Venture; Says Nabucco Financing is Intact
REF: (A) VIENNA 1351; (B) VIENNA 1344
1. On December 22, Austrian oil and gas company OMV
announced it will set up a joint venture with German RWE to
study "pipeline solutions" for exploiting the rich natural
gas resources from the Eastern side of the Caspian Sea to
Europe. The planned "Caspian Energy Company" will have it
headquarters in London, according to OMV, but is subject to
approval from the Austrian, German and EU competition
authorities. The studies would then start as early as
possible in 2009. The project's main goal is to find means
to bring the region's to the planned Nabucco International
Gas Pipeline.
2. "The project is a signal to the Caspian neighboring
countries Azerbaijan and Turkmenistan about the seriousness
of our intent to bring Caspian gas to Europe", OMV
representative Thomas Huemer said publicly. The existing
South Caucasus Pipeline (SCP) from Azerbaijan to Turkey,
run by BP and Statoil, could also profit from the project,
OMV said. It was open whether a link to SCP or the
construction of a new pipeline -- to be run by the new
Caspian Energy Company -- would better serve to deliver
Caspian gas into Nabucco. OMV is inviting "all other
interested oil and gas companies" to join the new venture.
3. Separately, the Nabucco consortium announced that
despite the world financial crisis, financing for the
planned Nabucco pipeline (currently projected to cost EUR
7.9 billion) is not in jeopardy. The announcement came
after talks with potential lenders including IFI's European
Bank for Reconstruction and Development (EBRD),European
Investment Bank (EIB),and the International Finance
Corporation (IFC),according to Nabucco CEO / OMV VP
Reinhard Mitschek. Those institutions would account for
around 70 percent of the investment, while the Nabucco
consortium companies would contribute the remaining 30
percent. In addition, prices for raw material such as steel
are projected to fall, helping to keep costs in line.
GIRARD-DICARLO
SIPDIS
E.O. 12958: N/A
TAGS: ENRG PGOV EPET AU
SUBJECT: OMV, RWE Announce Trans-Caspian Pipeline Joint
Venture; Says Nabucco Financing is Intact
REF: (A) VIENNA 1351; (B) VIENNA 1344
1. On December 22, Austrian oil and gas company OMV
announced it will set up a joint venture with German RWE to
study "pipeline solutions" for exploiting the rich natural
gas resources from the Eastern side of the Caspian Sea to
Europe. The planned "Caspian Energy Company" will have it
headquarters in London, according to OMV, but is subject to
approval from the Austrian, German and EU competition
authorities. The studies would then start as early as
possible in 2009. The project's main goal is to find means
to bring the region's to the planned Nabucco International
Gas Pipeline.
2. "The project is a signal to the Caspian neighboring
countries Azerbaijan and Turkmenistan about the seriousness
of our intent to bring Caspian gas to Europe", OMV
representative Thomas Huemer said publicly. The existing
South Caucasus Pipeline (SCP) from Azerbaijan to Turkey,
run by BP and Statoil, could also profit from the project,
OMV said. It was open whether a link to SCP or the
construction of a new pipeline -- to be run by the new
Caspian Energy Company -- would better serve to deliver
Caspian gas into Nabucco. OMV is inviting "all other
interested oil and gas companies" to join the new venture.
3. Separately, the Nabucco consortium announced that
despite the world financial crisis, financing for the
planned Nabucco pipeline (currently projected to cost EUR
7.9 billion) is not in jeopardy. The announcement came
after talks with potential lenders including IFI's European
Bank for Reconstruction and Development (EBRD),European
Investment Bank (EIB),and the International Finance
Corporation (IFC),according to Nabucco CEO / OMV VP
Reinhard Mitschek. Those institutions would account for
around 70 percent of the investment, while the Nabucco
consortium companies would contribute the remaining 30
percent. In addition, prices for raw material such as steel
are projected to fall, helping to keep costs in line.
GIRARD-DICARLO