This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS MADRID 004243 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETTC ENRG EPET PREL IR SP
SUBJECT: ILSA RESPONSE FROM REPSOL IS BUSINESS AS USUAL 
 
REF: A. SECSTATE 222831 
 
     ¶B. SECSTATE 204528 
     ¶C. 2003 MADRID 4423 
 
¶1.  (SBU) We spoke with Mario B. Rosso, Director General of 
the Eastern Hemisphere and Caribbean for REPSOL-YPF (Repsol) 
about Reftel A and B points. 
 
¶2.  (SBU) Rosso was well-prepared to handle the topic, 
explaining that the framework agreement noted in Reftel B was 
only "investigative," and that several years will pass before 
any final investment decision would be made.  He said that 
Repsol "will judge at the appropriate moment" details 
regarding any final agreement. 
 
¶3.  (SBU) Rosso acknowledged that Repsol, as noted in Reftel 
A, has arranged to explore areas in the Persian Gulf, but 
that the Iranians and the media have blown the magnitude of 
the project "immensely" out of proportion because Repsol has 
the option to walk out of the project on "almost any day." 
 
¶4.  (SBU) In justifying Repsol,s activities in Iran, Rosso 
said that Repsol personnel are behaving as "good citizens" 
He also alluded to a point he underscored in our December 
2003 meeting with him (see Reftel C) in which he informed us 
that US oil companies were negotiating in Libya, preparing 
for the day when they operate there.  During that 2003 
meeting, Rosso asserted that Repsol must prepare to compete 
with US companies when the US doors open to Libya.  During 
our latest meeting with Rosso, he said "who knows in two 
years what might happen?"  As with Libya in 2003, he feels 
that he must prepare for future US competition in Iran. 
 
¶5.  (SBU)  Comment:  As always, Rosso appeared to be well 
aware of the Iran Libya Sanctions Act (ILSA) and that his 
company most likely will not feel any negative impact from 
this law.  He is keenly aware of the competitive nature of 
his industry, and anticipates that US companies will compete 
fiercely with Repsol in Iran upon any future lifting of ILSA 
sanctions pertaining to Iran. 
ARGYROS