VZCZCXRO3051
PP RUEHAG RUEHAST RUEHBC RUEHDA RUEHDE RUEHDF RUEHDIR RUEHFL RUEHIK
RUEHKUK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK
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DE RUEHVI #1351 2591410
ZNR UUUUU ZZH
P 151410Z SEP 08
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 0952
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCNIRA/IRAN COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS VIENNA 001351 
 
SIPDIS, SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV ENRG ETRD EINV PREL IR AU
SUBJECT: IRAN URGES OMV TO CONCLUDE GAS DEALS 
 
¶1. (U) On the margins of a recent OPEC meeting, Iranian Oil Minister 
Gholamhossein Nozari publicly urged Austrian oil/gas company OMV to 
finalize an energy deal. In an exclusive interview September 12 with 
Austrian daily Wiener Zeitung (note: an Austrian government-owned 
newspaper), Nozari urged OMV to "hurry up" and finalize gas 
contracts with Iran, referring specifically to the Nabucco gas 
pipeline project (for which Iran could be a potential supplier). 
"Time is pressing, and we will not wait forever." Europe needs Iran, 
and the Austrians "should use their excellent relations to us to 
show an example."  He opined that Iran has plenty of options in 
spite of "three resolutions and countless warnings" -- citing new 
deals with India, Pakistan, Venezuela, and Switzerland. 
 
¶2. (U) On Nabucco: "Everyone recognizes that the Nabucco can't 
function without Iran.  A country with 16% of the world's gas 
reserves can't simply be ignored."  Nozari said, adding that his 
impression from ongoing talks is that "the Austrians are very 
interested in concluding the deal." 
 
¶3. (SBU)  OMV did not comment on the interview.  In addition to 
Nabucco, Nozari's comments could also refer to an April 2007 
preliminary gas contract ("Heads of Agreement") by OMV with its 
Iranian counterpart NIOC concerning the construction of an LNG plant 
and related gas deliveries.  OMV representatives at all levels say 
that the company sees Azerbaijan and Turkmenistan as suppliers of 
choice in Nabucco's first phase, and that other gas deliveries could 
come from Iraq and/or the Arab Gas Pipeline.  OMV does not rule out 
Iran as a supplier, especially if the political situation improves. 
The negotiations on the LNG projects are ongoing but with apparently 
little recent progress. Along with Royal Dutch Shell, OMV is a 
co-sponsor of Iran's 2nd Gas Export Conference October 4-5 in 
Tehran.  As OMV spokesman Thomas Huemer emphasized recently to 
Embassy rep, "OMV maintains business relations with Iran.  They are 
legitimate since we do not violate any UN or EU sanctions." 
 
GIRARD-DICARLO#