Diana T Fritz 08/28/2006 04:02:08 PM From DB/Inbox: Search Results
C O N F I D E N T I A L ABU DHABI 03767
INFO: MEPI RSO AMB P/M ECON DCM
CLEARED: DCM:MQUINN, CGD:JDAVIS
PP RUEHC RUEHZM RUEHLO RUEHFR RHEHNSC RHEBAAA
DE RUEHAD #3767 2481356
ZNY CCCCC ZZH
P 051356Z SEP 05
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC PRIORITY 1402
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHLO/AMEMBASSY LONDON 0930
RUEHFR/AMEMBASSY PARIS 0958
RHEBAAA/DEPT OF ENERGY WASHDC C O N F I D E N T I A L ABU DHABI 003767
DEPT FOR NEA/ARPI, EB/ESC/TFS, EB/ESC/IPC
E.O. 12958: DECL: 09/06/2015
SUBJECT: IRAN AND LIBYA SANCTIONS ACT (ILSA): SHARJAH/UAE
IRANIAN GAS PROJECT
REF: A. STATE 156227
B. ABU DHABI 3440
C. ABU DHABI 3237
D. DUBAI 265
Classified By: Ambassador Michele J. Sison, for reasons 1.4 (b and d).
1. (C) On September 4, Ambassador stressed our opposition to
investment in Iran's oil sector to MFA U/S Abdullah Rashid
Al-Noaimi, using Ref a talking points. She emphasized deep
USG concerns about Iranian actions and policies, including
pursuit of WMD and delivery systems, support for terrorism,
opposition to the Middle East Peace Process, and Iran's
abysmal human rights record. Ambassador stressed that
Crescent Petroleum's plans to bring Iranian gas to the UAE
and to create an infrastructure to do so are troubling. She
noted that this was an especially unfortunate development at
a time when Iran, breaking its agreement with the EU-3, has
restarted uranium conversion activities, which are the first
step toward producing weapons-grade fissile material.
Ambassador explained that, despite Dana Gas denials, the
volumes involved and the infrastructure being created
indicate that the source of the gas could only be from Iran.
2. (C) U/S Al-Noaimi took the Ambassador's points on board,
and said that the UAEG understands the USG's concerns about
Iran. He agreed that the UAEG and the USG shared concerns
about Iran's nuclear program. Ambassador urged that the UAEG
reconsider this project, noting that the support of
governmental entities within the UAE (the Emirate of Sharjah)
for the project was troubling. Al-Noaimi agreed to "take
another look" at the project.
3. (C) Earlier, during a previously scheduled August 26
visit to Ras Al-Khaimah, which would be a major customer of
Dana Gas, CG Dubai made the same points to Ras Al-Khaimah
(RAK) Crown Prince Sheikh Saud Al-Qasimi, who has long been
aware of USG concerns related to Iranian gas. Sheikh Saud,
who has argued in the past that resource-poor RAK would need
access to Iranian gas in order to further develop its
economy, made it clear that Sharjah's Dana Gas IPO would
benefit RAK. While not explicitly acknowledging that the gas
would be coming from Iran, he quipped that "we would prefer
American gas; unfortunately we were given no choice about who
our neighbors would be."
5. (C) Comment: We will continue to raise our opposition to
this program with appropriate federal and emirate level
officials. Ambassador plans to raise this with the UAE
Energy Minister on his return to the UAE and CG Dubai will
raise it again with Emirate of Sharjah leadership. End
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