Search

 

Cablegate: Petrobras Winding Down Business Dealings with Iran

VZCZCXRO5676
RR RUEHRG
DE RUEHRI #0044 0650952
ZNR UUUUU ZZH
R 050952Z MAR 08
FM AMCONSUL RIO DE JANEIRO
TO RUEHC/SECSTATE WASHDC 4367
INFO RUEHBR/AMEMBASSY BRASILIA 0726
RUEHSO/AMCONSUL SAO PAULO 5136
RUEHRG/AMCONSUL RECIFE 3414
RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS RIO DE JANEIRO 000044

SIPDIS

SIPDIS

SENSITIVE

STATE FOR WHA/BSC, WHA/EPSC, EB/ESC FOR SONATA COULTER
STATE PASS OPIC FOR RICHARD GREENBURG
STATE PASS EXIM FOR NATHALIE WEISS
TREASURY FOR SSEGAL

E.O. 12958: N/A
TAGS: ENRG ETTC EPET EINV PREL IR BR
SUBJECT: PETROBRAS WINDING DOWN BUSINESS DEALINGS WITH IRAN

REFS: A) 2007 STATE 62183 B) 2007 BRASILIA 554 C) 2007 RIO DE
JANEIRO 622

SENSITIVE BUT UNCLASSIFIED, PLEASE PROTECT ACCORDINGLY

1. (SBU) Summary. According to Petrobras, the company will
complete all of its existing contractual requirements in Iran later
this year. After completion of the Tusan contract, Petrobras does
not expect to be further invested in oil and gas activities in Iran.
End Summary.

2. (SBU) In 2004, Petrobras concluded a $34 million four-year
contract with Iran to explore the Tusan block, one of eight offshore
tracts offered in early 2003 covering most of Iran's waters between
the port of Bushehr and the Strait of Hormuz. This marked
Petrobras' return to Iran; Petrobras had discovered more than 10
billion barrels of oil there before the 1979 Islamic revolution
ended foreign E&P investment in Iran. Under the terms of the Tusan
deal, Petrobras is committed to drill two wells and then return the
field to Iran. If oil is found, then Petrobras will get its
investment back plus a fee. According to Homero Ventur, Petrobras'
General Manager for Asset Development (Note: Ventur has primary
responsibility for Petrobras' activities in Eurasia), drilling of
the first well is already complete and drilling of the second well
is expected to finish by October. After the Tusan contract is
fulfilled, Petrobras does not plan to pursue any further deals with
Iran.

3. (SBU) Ventur confirmed that negotiations with Iran's Khazar Oil
Exploration and Production Company for drilling rights in the
Caspian Sea have stalled and that Petrobras is no longer actively
pursuing the deal. He called Iranian press reports last year that
the deal was ready for signature "over-exaggerated."

4. (SBU) Comment: Although we have previously heard Petrobras'
complaints about the difficulty of doing business in Iran, Ventur's
comments are the first definitive answer we have received regarding
the status of the Caspian Sea deal with Iran. Ventur was very frank
in discussing Petrobras' activities with Iran, and was keenly aware
of U.S. political interest on the issue. End Comment.

5. (U) This message was cleared/coordinated with Embassy Brasilia.

MARTINEZ

© Scoop Media

 
 
 
 
 
World Headlines

 

Werewolf: Gordon Campbell On North Korea, Neo-Nazism, And Milo

With a bit of luck the planet won’t be devastated by nuclear war in the next few days. US President Donald Trump will have begun to fixate on some other way to gratify his self-esteem – maybe by invading Venezuela or starting a war with Iran. More>>

Victory Declared: New Stabilisation Funding From NZ As Mosul Is Retaken

New Zealand has congratulated the Iraqi government on the successful liberation of Mosul from ISIS after a long and hard-fought campaign. More>>

Gordon Campbell: On The Current US Moves Against North Korea

If Martians visited early last week, they’d probably be scratching their heads as to why North Korea was being treated as a potential trigger for global conflict... More>>

ALSO:

Gordon Campbell: On The Lessons From Corbyn’s Campaign

Leaving partisan politics aside – and ignoring Jeremy Corbyn’s sensational election campaign for a moment – it has to be said that Britain is now really up shit creek... More>>

ALSO:

Another US Court: Fourth Circuit Rules Muslim Ban Discriminatory

ACLU: Step by step, point by point, the court laid out what has been clear from the start: The president promised to ban Muslims from the United States, and his executive orders are an attempt to do just that. More>>

ALSO:

 
 
 
 
 
 
  • Pacific.Scoop
  • Cafe Pacific
  • PMC