Identifier
Created
Classification
Origin
08ZAGREB335
2008-04-24 10:12:00
CONFIDENTIAL
Embassy Zagreb
Cable title:
CROATIA'S INA IN IRAN OIL EXPLORATION DEAL
how-toVZCZCXRO6822 PP RUEHBW RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR DE RUEHVB #0335 1151012 ZNY CCCCC ZZH P 241012Z APR 08 FM AMEMBASSY ZAGREB TO RUEHC/SECSTATE WASHDC PRIORITY 8853 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY RUEAIIA/CIA WASHINGTON DC PRIORITY
C O N F I D E N T I A L ZAGREB 000335
SIPDIS
SIPDIS
STATE FOR EUR/SCE
E.O. 12958: DECL: 04/21/2018
TAGS: ENRG ECON EPET PREL IR HR
SUBJECT: CROATIA'S INA IN IRAN OIL EXPLORATION DEAL
Classified By: Econ Officer Nicholas Berliner for reasons 1.4 b/d.
C O N F I D E N T I A L ZAGREB 000335
SIPDIS
SIPDIS
STATE FOR EUR/SCE
E.O. 12958: DECL: 04/21/2018
TAGS: ENRG ECON EPET PREL IR HR
SUBJECT: CROATIA'S INA IN IRAN OIL EXPLORATION DEAL
Classified By: Econ Officer Nicholas Berliner for reasons 1.4 b/d.
1. (U) Croatia's national oil and gas company INA (44 percent
state owned) announced April 9 that it had entered into a
deal with the National Iranian Oil Company (NIOC) for
exploration in the Moghan-2 block in northwestern Iran. The
deal commits INA to exploration and development of any
discoveries, after which time NIOC would take over production.
2. (C) In an April 22 meeting with Econ Off, INA Senior
Advisor Stevo Kolundzic said that the exploration phase of
the deal was expected to last 4 years at a cost of about 18
million dollars. Econ Off reminded Kolundzic that the U.S.
remained opposed to any investment in Iran, as this would be
taken by the regime as an indication that the international
community lacks the means to apply effective sanctions and
force Iran to halt its nuclear program. Kolundzic said that
he and the management of INA were cognizant of this fact and,
as a result, had entered into a deal that would not result in
any substantial investment in Iran in the near term. He said
that INA, as a small to medium sized company, had a hard time
gaining access to new fields and that the Iran deal should be
viewed as a hedge against a future when the political climate
with Iran could be different.
3. (C) Comment: INA has been looking at Iran for some time
and is fully aware of U.S. positions regarding investment
there. INA views itself as disadvantaged in the scramble for
energy resources and thus forced to play on the margins, as
this deal would indicate. Nevertheless, INA officials are
also quick to point out to us that major European companies
including Edison, Total and others are heavily involved in
Iran but that unlike INA, they enjoy the backing of more
influential governments.
Bradtke
SIPDIS
SIPDIS
STATE FOR EUR/SCE
E.O. 12958: DECL: 04/21/2018
TAGS: ENRG ECON EPET PREL IR HR
SUBJECT: CROATIA'S INA IN IRAN OIL EXPLORATION DEAL
Classified By: Econ Officer Nicholas Berliner for reasons 1.4 b/d.
1. (U) Croatia's national oil and gas company INA (44 percent
state owned) announced April 9 that it had entered into a
deal with the National Iranian Oil Company (NIOC) for
exploration in the Moghan-2 block in northwestern Iran. The
deal commits INA to exploration and development of any
discoveries, after which time NIOC would take over production.
2. (C) In an April 22 meeting with Econ Off, INA Senior
Advisor Stevo Kolundzic said that the exploration phase of
the deal was expected to last 4 years at a cost of about 18
million dollars. Econ Off reminded Kolundzic that the U.S.
remained opposed to any investment in Iran, as this would be
taken by the regime as an indication that the international
community lacks the means to apply effective sanctions and
force Iran to halt its nuclear program. Kolundzic said that
he and the management of INA were cognizant of this fact and,
as a result, had entered into a deal that would not result in
any substantial investment in Iran in the near term. He said
that INA, as a small to medium sized company, had a hard time
gaining access to new fields and that the Iran deal should be
viewed as a hedge against a future when the political climate
with Iran could be different.
3. (C) Comment: INA has been looking at Iran for some time
and is fully aware of U.S. positions regarding investment
there. INA views itself as disadvantaged in the scramble for
energy resources and thus forced to play on the margins, as
this deal would indicate. Nevertheless, INA officials are
also quick to point out to us that major European companies
including Edison, Total and others are heavily involved in
Iran but that unlike INA, they enjoy the backing of more
influential governments.
Bradtke