Identifier
Created
Classification
Origin
09ABUDHABI847
2009-08-25 06:43:00
CONFIDENTIAL//NOFORN
Embassy Abu Dhabi
Cable title:
IRAN, RUSSIA OFFER GAS TO UAE
how-toVZCZCXRO0221 OO RUEHBC RUEHDE RUEHDH RUEHDIR RUEHKUK RUEHTRO DE RUEHAD #0847 2370643 ZNY CCCCC ZZH O 250643Z AUG 09 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC IMMEDIATE 2867 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE RUCNIRA/IRAN COLLECTIVE RUEHMO/AMEMBASSY MOSCOW 0489 RHEHNSC/NSC WASHDC
C O N F I D E N T I A L ABU DHABI 000847
NOFORN
SIPDIS
E.O. 12958: 08/23/2019
TAGS: ENRG EPET ETRD PGOV IR RS AE
SUBJECT: IRAN, RUSSIA OFFER GAS TO UAE
CLASSIFIED BY AMBASSADOR RICHARD G. OLSON FOR REASONS 1.4 B AND D.
C O N F I D E N T I A L ABU DHABI 000847
NOFORN
SIPDIS
E.O. 12958: 08/23/2019
TAGS: ENRG EPET ETRD PGOV IR RS AE
SUBJECT: IRAN, RUSSIA OFFER GAS TO UAE
CLASSIFIED BY AMBASSADOR RICHARD G. OLSON FOR REASONS 1.4 B AND D.
1. (C/NF) SUMMARY: Abu Dhabi investment firm Mubadala denied recent
(Iranian) press reports of a gas deal with the National Iranian Oil
Company (NIOC). However, the rumors have a kernel of truth as Iran
has repeatedly offered the UAE natural gas. While most Emiratis know
Iran well enough to steer clear of the offer, Russia's Gazprom has
offered to facilitate -- and guarantee -- a gas deal. There is no
indication Abu Dhabi will pursue the offer, but smaller Emirates may
seek to use it as leverage to get more electricity from Abu Dhabi.
END SUMMARY.
NO IRAN DEAL...
--------------
2. (SBU) In mid-August, Iran's Mehr News Agency reported that Abu
Dhabi investment firm Mubadala had bid to import Iranian gas from
NIOC. While few media outlets picked up the story, Mubadala -- which
is backed by Abu Dhabi Crown Prince Mohammed bin Zayed -- was quick
to publicly deny the report. On August 17, the UAE's official news
agency WAM released the following statement, "Neither Mubadala nor
any of its subsidiaries is involved in discussions with the National
Iranian Oil Company regarding the importation of gas to the UAE."
Mubadala advisor Ashraf Hamdi told the Ambassador on August 18 that
there was no truth to the story.
...BUT NOT FOR LACK OF TRYING
--------------
3. (C/NF) Abu Dhabi Executive Affairs Authority (EAA) Director of
Economic Affairs David Scott told EconOff on August 18 that Iran has
repeatedly approached the UAE to offer gas. (Note: UAE gas is
predominantly "sour," or high in sulfur. Abu Dhabi imports
significant quantities from Qatar via the Dolphin Energy pipeline.
End Note.) Scott said that Abu Dhabi has been open to discussions,
but feels strongly Iranian officials are unable and/or unwilling to
negotiate a competitive gas price. NIOC has never followed up on UAE
requests for specific details.
4. (C/NF) When asked about energy deals with Iran, most UAE officials
quickly point to the example of Sharjah-based Crescent Petroleum's
2001 deal with NIOC, which has yet to come to fruition. While the
necessary infrastructure has been constructed on the UAE side, price
debates with NIOC continue. Abu Dhabi National Oil Company (ADNOC)
Deputy CEO Abdulla Al Sowaidi told EconOff the deal demonstrates
Iran's inability to develop its hydrocarbon sector.
RUSSIA MUSCLES IN
--------------
5. (C/NF) Scott told EconOff that NIOC's reputation has left a void
Russia is trying to fill. Scott said Russian officials have reached
out to the UAE to facilitate a UAE-Iran gas deal. Ras Al Khaimah
Crown Prince Sheikh Saud Al Qassimi told the Ambassador in November
2008 that Gazprom was offering to facilitate gas "swaps" (Gazprom's
Turkmen gas to Northern Iran would be exchanged for Iranian gas from
the south for the UAE). Sheikh Saud said Boris Ivanov was
foul-mouthed and vulgar, suggesting it was unlikely the firm would
find any buyers in the UAE.
6. (C/NF) COMMENT: While the UAE has no surplus of gas or power,
there are no indications anyone (since Crescent) is serious about
pursuing the Iranian gas offer. Scott said Abu Dhabi's decision to
pursue nuclear power should provide the UAE's largest and wealthiest
emirate with enough electricity to support its smaller and poorer
compatriots. While the sheer size of Iran's gas reserves remains
attractive, few here are convinced Iran is likely to be a reliable
partner. END COMMENT.
OLSON
NOFORN
SIPDIS
E.O. 12958: 08/23/2019
TAGS: ENRG EPET ETRD PGOV IR RS AE
SUBJECT: IRAN, RUSSIA OFFER GAS TO UAE
CLASSIFIED BY AMBASSADOR RICHARD G. OLSON FOR REASONS 1.4 B AND D.
1. (C/NF) SUMMARY: Abu Dhabi investment firm Mubadala denied recent
(Iranian) press reports of a gas deal with the National Iranian Oil
Company (NIOC). However, the rumors have a kernel of truth as Iran
has repeatedly offered the UAE natural gas. While most Emiratis know
Iran well enough to steer clear of the offer, Russia's Gazprom has
offered to facilitate -- and guarantee -- a gas deal. There is no
indication Abu Dhabi will pursue the offer, but smaller Emirates may
seek to use it as leverage to get more electricity from Abu Dhabi.
END SUMMARY.
NO IRAN DEAL...
--------------
2. (SBU) In mid-August, Iran's Mehr News Agency reported that Abu
Dhabi investment firm Mubadala had bid to import Iranian gas from
NIOC. While few media outlets picked up the story, Mubadala -- which
is backed by Abu Dhabi Crown Prince Mohammed bin Zayed -- was quick
to publicly deny the report. On August 17, the UAE's official news
agency WAM released the following statement, "Neither Mubadala nor
any of its subsidiaries is involved in discussions with the National
Iranian Oil Company regarding the importation of gas to the UAE."
Mubadala advisor Ashraf Hamdi told the Ambassador on August 18 that
there was no truth to the story.
...BUT NOT FOR LACK OF TRYING
--------------
3. (C/NF) Abu Dhabi Executive Affairs Authority (EAA) Director of
Economic Affairs David Scott told EconOff on August 18 that Iran has
repeatedly approached the UAE to offer gas. (Note: UAE gas is
predominantly "sour," or high in sulfur. Abu Dhabi imports
significant quantities from Qatar via the Dolphin Energy pipeline.
End Note.) Scott said that Abu Dhabi has been open to discussions,
but feels strongly Iranian officials are unable and/or unwilling to
negotiate a competitive gas price. NIOC has never followed up on UAE
requests for specific details.
4. (C/NF) When asked about energy deals with Iran, most UAE officials
quickly point to the example of Sharjah-based Crescent Petroleum's
2001 deal with NIOC, which has yet to come to fruition. While the
necessary infrastructure has been constructed on the UAE side, price
debates with NIOC continue. Abu Dhabi National Oil Company (ADNOC)
Deputy CEO Abdulla Al Sowaidi told EconOff the deal demonstrates
Iran's inability to develop its hydrocarbon sector.
RUSSIA MUSCLES IN
--------------
5. (C/NF) Scott told EconOff that NIOC's reputation has left a void
Russia is trying to fill. Scott said Russian officials have reached
out to the UAE to facilitate a UAE-Iran gas deal. Ras Al Khaimah
Crown Prince Sheikh Saud Al Qassimi told the Ambassador in November
2008 that Gazprom was offering to facilitate gas "swaps" (Gazprom's
Turkmen gas to Northern Iran would be exchanged for Iranian gas from
the south for the UAE). Sheikh Saud said Boris Ivanov was
foul-mouthed and vulgar, suggesting it was unlikely the firm would
find any buyers in the UAE.
6. (C/NF) COMMENT: While the UAE has no surplus of gas or power,
there are no indications anyone (since Crescent) is serious about
pursuing the Iranian gas offer. Scott said Abu Dhabi's decision to
pursue nuclear power should provide the UAE's largest and wealthiest
emirate with enough electricity to support its smaller and poorer
compatriots. While the sheer size of Iran's gas reserves remains
attractive, few here are convinced Iran is likely to be a reliable
partner. END COMMENT.
OLSON