Cablegate: Turkey: Energy Minister On Investment in Iran

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RR RUEHBC RUEHDE RUEHDIR RUEHKUK
DE RUEHAK #1761 2831449
ZNR UUUUU ZZH
R 091449Z OCT 08
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC 7638
INFO RUCNIRA/IRAN COLLECTIVE
RUEHIT/AMCONSUL ISTANBUL 4819
RUEHDA/AMCONSUL ADANA 3282
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RHEHAAA/NSC WASHDC
RUEAIIA/CIA WASHDC

UNCLAS ANKARA 001761

SENSITIVE
SIPDIS

EEB FOR SPECIAL ENVOY FOR EURASIAN ENERGY GRAY
EEB FOR ENERGY COORDINATOR MANN
EUR FOR DAS BRYZA

E.O. 12958:N/A
TAGS: ECON ENRG TU IR
SUBJECT: TURKEY: ENERGY MINISTER ON INVESTMENT IN IRAN

REF: ANKARA 1580

1. (U) On October 8, Reuters carried an interview with Turkish
Energy Minister Hilmi Guler on investment in Iran. The version in
Turkish provided more detail than the wire service version. Below
is a translation by Embassy staff of Guler's comments from the
original story.

2. (U) Guler said, "Suspending the gas agreement with Iran is out
of the question. Once there is a compromise about the buy back
model and when everything is more clear, there will be a signing.
There needs to be a text to sign for me to go to Tehran. It is
important to have results in these talks. Regarding (development of
Iranian) natural gas blocks, there are differences in Iranian
legislation and our expectations. We are two neighbors living in
this region. We have on-going energy projects which are based on a
joint history. These factors are part of the negotiation."

3. (U) In response to a question about why he has not yet traveled
to Iran, Guler said "I did not go there back in August because there
was no text to sign. In the meantime, I went to other countries,
like Turkmenistan and had new discussions in these places." The
article also quoted a senior Ministry of Energy official as saying
"if there is no change in the buy back model which would be
acceptable to global investors, we won't be signing an agreement.
Turkey's aim is to sell gas directly (to the customer) and to have
Iran as a partner in the investment."

4. (SBU) Comment: Guler's October 7 comments were likely timed to
get a favorable outcome from a meeting with Iranian Deputy Oil
Minister the following day. We continue to hear from Ministry of
Energy officials and others that getting a deal with Iran, if
possible at all, will take many, many years.

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