Friday, December 6, 2013

Eye on Iran: European Energy Companies Meet With Iranian Oil Minister








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Top Stories

WSJ:
"Royal Dutch Shell PLC and Vitol Group SA met Thursday with Iran's oil minister in Vienna, the minister said, as Tehran takes its first steps toward reopening its energy industry following decades of sanctions. As it tries to lure back oil companies, Iran also signaled it could offer production-sharing agreements in the Caspian Sea. Such deals are considered attractive to companies but haven't been awarded in Iran since the 1970s. Bijan Zanganeh, who was in Vienna for the meeting of the Organization of the Petroleum Exporting Countries, said he had met with executives from Anglo-Dutch oil giant Shell, the world's largest oil trader Vitol, Austria's OMV and Italy's Eni SpA... As it hopes to increase its oil sales, the Islamic Republic is also courting European buyers of oil, which last year were banned from importing the commodity from Tehran. These sanctions have reduced crude-oil exports from Iran by more than half since the beginning of last year. 'With OMV, we discussed about many things and [with] Shell only about the general willingness for cooperation in future and placing the money that we have in account of Shell,' Mr. Zanganeh told reporters. Sanctions against Iran have meant Shell has been unable to pay billions of dollars it owes to Tehran. 'A various range of cooperation' was discussed with Vitol, he said. Vitol, which declined to comment, is discussing possible purchases of condensates once sanctions are lifted, according to people familiar with the situation. OMV and Shell also declined to comment. Speaking as he exited the meeting, Eni Chief Executive Paolo Scaroni said, 'We plan to continue to be in Iran and possibly increase our activity as long as the sanction regime is lifted.'" http://t.uani.com/1eV0Xjm

Reuters: "U.N. inspectors are to visit an Iranian plant on Sunday linked to a planned heavy-water reactor that could yield nuclear bomb fuel, taking up an initial gesture by Iran to open its disputed nuclear programme up to greater scrutiny... It will be the first time in more than two years that the International Atomic Energy Agency (IAEA) is allowed to go to the Arak heavy-water production plant, which is designed to supply a research reactor under construction nearby. The improved access will enable the Vienna-based U.N. nuclear watchdog to better 'understand' the activities there, IAEA Director General Yukiya Amano said last week when he announced that Iran had invited his experts to come on Dec. 8. Iran's atomic energy organisation said this underlined the country's 'goodwill to remove ambiguities about the peaceful nature of its nuclear energy programme', Press TV, Iran's English-language state television, reported on Wednesday. But Western diplomats and nuclear experts stress that Iran must do much more in order to fully address suspicions that it has been trying to develop the capability to assemble nuclear weapons, a charge the Islamic Republic denies." http://t.uani.com/18IjkcT

AFP: "President Barack Obama on Thursday defended his nuclear diplomacy with Iran before an audience of Israeli diplomats and senior members of the US Jewish community and officials. At a White House Hanukkah reception, Obama said that it was important for the United States to test Iran's intentions, and pledged to keep working for a comprehensive deal to deprive Tehran of a nuclear weapon. 'For the first time in a decade we have halted progress of Iran's nuclear program,' Obama said. 'Key parts of the program will be rolled back even though the toughest of our sanctions remain in place. That is good for the world, that is good for Israel,' Obama said, vowing to keep striving for a final deal with Iran over the coming months that takes care of the 'threat of Iran's nuclear weapons once and for all.' Obama also said however that Washington must remain vigilant and that its commitment to Israeli security would remain 'iron clad' and 'unshakeable.'" http://t.uani.com/1hCdWdO
 
Nuclear Negotiations

FT: "Israel is shifting its tactics over the Iran nuclear talks, moving from fierce public criticism of the Obama administration to private pressure about the next stage of the negotiations, according to US, Israeli and western officials... 'Our opinion is still that the first deal was a move in the wrong direction,' said an Israeli official. 'But that's water under the bridge and we will now focus on what is going to happen in the coming months.' ... Dennis Ross, a former senior White House adviser on the Middle East, said that one of the main worries of the Israelis was that the talks would drag on far beyond six months, which would undermine international support for the tough sanctions regime. 'We need to be talking with the Israelis about what happens if there is no deal in six months and the Iranians effectively opt to have other interim steps or freeze the situation,' he said. He also suggested that the US and Israel should re-establish a working group that existed in Mr Obama's first term to discuss sanctions on Iran. 'The purpose would be to plug any holes and shine a spotlight on those trying to do business with Iran in defiance of the existing sanctions,' Mr Ross said. 'We could do a great deal to emphasise the reputational costs to deter companies from thinking about doing business with the Iranians.'" http://t.uani.com/1blm1uZ

Reuters: "Russian Foreign Minister Sergei Lavrov will visit Iran next week to discuss the interim deal reached by world powers and Tehran over its nuclear programme and other issues, Russian news agencies reported on Friday... During the visit on Tuesday and Wednesday, Lavrov plans to discuss the situation surrounding Iran's nuclear programme 'in the context of the agreements recently reached in Geneva', Interfax quoted a Russian Foreign Ministry official as saying." http://t.uani.com/18o1N7f

Sanctions

Reuters: "Iran's leading oil negotiator says Tehran wants Western oil companies to revive its giant ageing oilfields and develop new oil and gas projects once sanctions are lifted. Mehdi Hosseini, in charge of revising Iran's oil investment contract, told Reuters that oil companies will find it hard to pass up Iran's 'low cost, low risk' investment opportunities that will be offered on more attractive commercial terms due to be revealed in early April at an energy conference in London. 'We will have many promising projects for the international oil companies,' said Hosseini, Iranian Oil Minister Bijan Zanganeh's former deputy. 'Brown fields, green fields and exploration blocks - in both oil and gas.' ... 'We need technology and investment from the IOCs to help reverse the depletion of these oilfields,' he told Reuters by telephone from Tehran." http://t.uani.com/1jtSLdr

Reuters: "U.S. Secretary of State John Kerry assured Israeli Prime Minister Benjamin Netanyahu on Thursday that core sanctions against Iran would remain in place despite its interim nuclear deal with world powers... 'Steps must be taken to prevent a further erosion of sanctions,' said Netanyahu, who has described a nuclear-armed Islamic Republic as a mortal menace to the Jewish state... 'I can't emphasize enough that Israel's security in this negotiation is at the top of our agenda and the United States will do everything in its power to make certain that Iran's nuclear program, the program's weaponisation possibilities, is terminated,' Kerry said. The Obama administration was warning any other country against 'moving ahead of sanctions' in trading with Iran, Kerry said. 'The fundamental sanctions regime of oil and banking remains absolutely in place. It is not changed. And we will be stepping up our effort of enforcement through the Treasury Department and through the appropriate agencies of the United States,' Kerry said." http://t.uani.com/1blo1H2

Politico: "The Obama administration's closed-door push to hold off new congressional sanctions on Iran will go public next week. On Thursday, two of President Barack Obama's point people on Iran - top State Department official Wendy Sherman and top Treasury Department official David Cohen - will testify before the Senate Banking Committee. They are expected to publicly make the case that they have been making in private for weeks in a series of classified briefings for lawmakers. The officials will likely urge the committee not to take up a fresh round of economic penalties on Iran while Obama's team tries to finesse a permanent agreement with Iran to wind down the country's nuclear program in return for some economic relief. Sherman and Cohen privately briefed dozens of largely skeptical House members on Wednesday on the guts of the six-month interim deal that Western powers struck with Iran last month to temporarily pause sanctions in return for a scaleback of the country's nuclear ambitions. According to a Treasury official, Cohen told House members that the agreement is 'limited, temporary, and reversible' and that the Treasury Department 'will continue to enforce sanctions aggressively.'" http://t.uani.com/18o5QQK

Syria Conflict

AFP: "Iran's President Hassan Rouhani said Thursday a peace conference on Syria slated for January should lay the groundwork for 'absolutely free' elections. 'The ground should be prepared for holding an absolutely free election with no preconditions,' Rouhani told visiting Iraqi Prime Minister Nuri al-Maliki, the presidency website reported. Rouhani, whose country backs Syrian President Bashar al-Assad, said the conference should also aim for the 'complete expulsion of the terrorists from Syria,' using the regime's term for its foes. 'It is our mutual responsibility to defend the ideals and demands of the Syrian nation in all international conferences,' especially at the so-called Geneva 2, he said." http://t.uani.com/1jtUwHs

Human Rights

Fox News: "The Obama administration faced renewed criticism Thursday for entering nuclear talks with Iran without first demanding the release of U.S. citizens, following reports that imprisoned pastor Saeed Abedini is facing threats on his life from other prisoners. 'It is unconscionable that senior American diplomats, including the secretary of State ... could not bring themselves to even mention his name, or those of fellow Americans detained in Iran,' Sen. Ted Cruz, R-Texas, said in a statement. The State Department earlier faced criticism after a six-month deal with Iran was announced that rolled back sanctions in exchange for a pause in parts of Iran's nuclear energy program. The department acknowledged that the status of Abedini, and other American prisoners, was not part of those discussions." http://t.uani.com/1d0TcGY

Domestic Politics

NYT: "President Hassan Rouhani, who was surprisingly elected in June promising to end the nuclear crisis, improve the economy and restore the 'dignity of Iranians in the world,' has together with his administration gone out on a limb to try to convince his people that good times are underway. They point to a 14 percent gain in Tehran's stock market since the signing of the deal, the stabilization of the national currency and a drop in the inflation rate. Mr. Rouhani has promised that the agreement is a first step to 'the collapse of the sanctions regime.' Western companies, such as the French oil giant Total and Anglo-Dutch Shell, have said they are eager to return to the Iranian market, as have the French automakers Renault and Peugeot. 'Following our victories in domestic and foreign policy, now people have got their eyes on the economy,' the minister of the economy, Ali Tayyebnia, told a semiofficial news agency last week... Some experts on the economy cautioned that the euphoria could be short-lived. 'It shows people are desperate for good news,' said Kevan Harris, a Princeton University sociologist who conducts research on Iran's economy and travels regularly to the country. 'Bad news can prick that bubble.'" http://t.uani.com/1eUZ9qz

WSJ: "Iran is ready to consider production-sharing agreement for its Caspian Sea resources, the country's oil minister said Thursday. Though no final decision has been made, the considerations are the latest example of Iran's efforts to bring oil companies back once sanctions are lifted amid progress in nuclear talks. Speaking to reporters in Vienna, Iran's Bijan Zanganeh said 'We can consider it...I can't promise it' about awarding PSAs in the Caspian Sea. This type of contract is popular with foreign companies but they have not been awarded by Tehran in at least four decades. The considerations to award PSAs in some limited cases are part of a broader effort by Mr. Zanganeh to revise the country's unattractive oil contracts. Though common in Africa, PSAs have proved a divisive issue in the Middle-Eastern oil sector--Iran included--because they allow foreign companies to book reserves from oil fields." http://t.uani.com/18o0khe

Foreign Affairs

BBC: "Since taking the job in August, Mohammad Javad Zarif has held talks in New York; gone to Geneva three times in order to reach an interim nuclear deal with a group of world powers; and this week, on a tour of the Gulf, he gets stamps for Qatar, Kuwait, Oman, and the United Arab Emirates. The message he is hoping to convey is obvious; Iran is under new diplomatic management. The Islamic Republic's new government, led by President Hassan Rouhani, has set out to improve the country's position in the region and in the world. In particular, Mr Rouhani and Mr Zarif want to drain some of the tensions built up during the eight year administration of Mahmoud Ahmadinejad. In recent years, those tensions were aggravated in the Gulf. In 2011, Iran even threatened to block the Strait of Hormuz. Iran's relationship with the Gulf has largely been overshadowed by its historic rivalry with Saudi Arabia." http://t.uani.com/Iw4s57
Opinion & Analysis

UANI President Dr. Gary Samore in Iran Matters: "I am leaving Israel more concerned than when I arrived. Based on two days of intense discussions with current and former Israeli officials, the level of Israeli distrust and anxiety over the Iran deal is worse than I expected. Part of the Israeli complaint is procedural. They resent being kept in the dark about the secret U.S.-Iranian meetings in Oman (even though Israeli intelligence learned about the meetings) and fear that the U.S. and Iran may have already reached secret agreements on the terms of a final deal. They are shocked at how quickly the interim deal came together and complain that a tougher U.S. posture that extended the negotiations for several more rounds could have produced a more favorable interim agreement. They don't accept the argument that President Obama decided to seize the opportunity rather than run the risk that it would slip away because of opposition in Tehran and Washington. Fundamentally, according to my Israeli contacts, Prime Minister Netanyahu suspects that President Obama has shifted from a policy of preventing Iran from getting a bomb to a de facto policy of containment in order to avoid war and kick the Iranian issue into the next administration. Specifically, the Israelis complain that the interim agreement makes no mention of the requirement for Iran to suspend its enrichment program in accordance with UN Security Council resolutions, as - the Israelis claim - Washington repeatedly promised to include in any agreement. Instead, the agreement accepts that Iran will be allowed to have a 'mutually defined' enrichment program 'consistent with practical needs,' which the Israelis fear will be interpreted in the final deal to allow Iran to retain a substantial enrichment capacity. Israeli fears were aggravated by a November 27 story by Washington Post columnist David Ignatius, citing US government sources, on US demands for a final deal. Among them, according to Ignatius, 'the United States will press Iran to dismantle a substantial number of its roughly 19,000 centrifuges, perhaps more than half.'  [emphasis mine] Sensitive to any hints of U.S. concessions, Israeli officials believe the U.S. may be prepared to accept as many as 9,000 centrifuges, which the Israelis say could give Iran the ability to produce a bomb's worth of weapons-grade uranium within a few months, if Iran retained a sufficient stockpile of low enriched uranium.  As one of my Israeli contacts said, 'We can't live with that.' ... Most of my Israeli friends hope to avoid a political confrontation with Washington. Indeed, they are looking for ways to resume cooperation against the common threat of Iran's nuclear weapons program. The upcoming meeting between the new Israeli National Security Adviser Yossi Cohen and U.S. National Security Adviser Susan Rice in Washington could be a positive turning point. First, Washington will explain its demands for the upcoming negotiations with Iran for a final deal. Most of these demands, as conveyed to Ignatius (such as closure of the Fordow facility and elimination of the Arak heavy water research reactor), would serve President Obama's expressed intent that a final deal should make it 'impossible' for Iran to develop nuclear weapons. The crucial issue will be the scope and scale of enrichment in Iran that the U.S. is prepared to accept in a final deal. The Israelis are unlikely to come off their demand for zero enrichment for fear that the U.S. will pocket any concessions, but the U.S. also has an interest in ensuring that "break out" time is extended beyond a few months. Second, both the U.S. and Israel have a common interest in developing a strategy to ensure that the remaining sanctions remain in force during the negotiations of a final agreement. Without this leverage, US hopes to negotiate a favorable end state will evaporate." http://t.uani.com/1ceLUxJ

UANI Advisory Board Member Walter Russell Mead in WSJ: "Could the Saudis and Israelis be cooking up a little diplomatic revolution of their own to offset the shift in American policy toward Iran? The temporary nuclear agreement between Iran and the world's major powers has this pair of America's oldest and closest Middle East allies deeply worried. With Israeli Prime Minister Benjamin Netanyahu and a bevy of Saudi officials attacking the deal, Jerusalem and Riyadh are torn between rage and fear. The question is whether this matters. The U.S. is the world's only superpower, and its security guarantees have been the pillar of Israeli and Saudi defense thinking for a very long time. As long as U.S. domestic politics give President Obama the leeway he needs in the Middle East, U.S. officials and commentators appear to believe that the Saudis and Israelis will have to live with whatever Washington does. Perhaps. The Saudis and Israelis are status-quo, stability-seeking powers. Maybe they will stand by and watch while a U.S. president they neither trust nor respect remakes the region. But maybe not. The two countries could instead forge an entente, informal or formal. Just as Saudi support for the coup in Egypt thwarted two years of painstaking if farcical American efforts to promote 'a transition to democracy' in the land of the Nile, so the Saudis and Israelis could throw some serious wrenches in the Obama administration's Iran strategy. Riyadh and Jerusalem have common interests that are not limited to preventing Tehran from acquiring nuclear weapons. The Saudis believe Iran is leading Shiites in a religious conflict with Sunnis now engulfing the Fertile Crescent. They fear that the Islamic Republic, nuclear or not, poses an existential threat to their security as the Shiite tide rises... Yet necessity has made stranger diplomatic bedfellows. From the Saudi point of view, times are grim. The Sunni Arab world is in a fight for survival against the Shiites, but without Israeli help the weak and divided Sunnis may not stand. There has already been some discussion, public and private, about a relatively weak form of Saudi-Israeli collaboration against Iran. In this scenario, Israeli jets would overfly Saudi territory as part of an Israeli attack on Iran's nuclear facilities. Saudi sources hint that the Israeli air force would encounter no Saudi resistance. The obstacles against a successful attack on Iran may be too great even using Saudi airspace. But an agreement that let Israel use Saudi bases for takeoff and refueling could tip the military balance enough to make a difference... Those who think the Israelis and Saudis will have to accept whatever treatment the Americans dish out may be right. But if access to Saudi facilities changes the calculations about what Israeli strikes against Iran can accomplish, the two countries have some careful thinking to do. It would be an error for American policy makers to assume that allies who feel jilted will sit quietly." http://t.uani.com/1ceLc3p

Kimberley A. Strassel in WSJ: "The Iranian mullahs might be negotiating a nuclear deal with Secretary of State John Kerry, but the man they've got their eye on is Sen. Chuck Schumer. As should we all. As the Senate mulls exercising some necessary oversight of the Obama administration's historic fold on Iran, the member who now holds ultimate power over whether that body acts is the senior senator from New York. Mr. Schumer has spent the past week busting on the White House deal, and calling for additional sanctions. What the mullahs are banking on is that Mr. Schumer is, per usual, playing a double game. Foreign Relations Committee Chairman Robert Menendez of New Jersey, and his Republican counterpart, Illinois's Mark Kirk, are crafting legislation to impose a new tranche of sanctions on Iran if it cheats on the interim accord, or if the administration fails to cement a legitimate deal within six months. This puts Mr. Obama on notice that any final agreement must hit certain markers, even as it makes clear to Iranians that the price of deception will be greater economic pain. Yet Mr. Obama wants to be left free to concoct whatever weak deal he can claim toward a legacy. He's also desperate to avoid another public rebuke from his party (on top of ObamaCare). So the White House is lobbying key senators to stand down and taking a strident line against Senate action. Even sanctions 'with a delayed trigger,' insists White House Press Secretary Jay Carney, would 'undermine the negotiations.' Assisting is Senate Majority Leader Harry Reid, whose only planetary function these days is as left tackle for the White House. Mr. Reid shuffled the sanctions question to the Banking Committee, where Chairman Tim Johnson can be counted on to run out the clock. Only one other legislative vehicle is positioned to pass the Senate this year-the defense authorization bill-and Mr. Reid seems primed to block a sanctions amendment, or squash the bill altogether, to protect the president's Iranian dealings. The only man with the juice to change this is Sen. Schumer. Third in the Senate leadership, a member of the body's most powerful committees, Mr. Schumer fashions himself his party's staunchest defender of Israel... Publicly, Mr. Schumer has derided the Geneva accord with Iran, arguing that the White House's generous sanctions relief is 'disproportional' to Tehran's meager offer to freeze some of its nuclear program, maybe. He's publicly embraced additional sanctions, arguing that they will only prove effective if Iran has 'the psychological fear that they will get worse.' ... The senator has a huge opportunity this week-by simply holding by his stated principles-to be remembered as the guy who stepped up forcefully to contain Iran. Or not. His donors and constituents, like the mullahs, need to be watching." http://t.uani.com/1blhvga

Eye on Iran is a periodic news summary from United Against Nuclear Iran (UANI) a program of the American Coalition Against Nuclear Iran, Inc., a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. Eye on Iran is not intended as a comprehensive media clips summary but rather a selection of media elements with discreet analysis in a PDA friendly format. For more information please email Press@UnitedAgainstNuclearIran.com

United Against Nuclear Iran (UANI) is a non-partisan, broad-based coalition that is united in a commitment to prevent Iran from fulfilling its ambition to become a regional super-power possessing nuclear weapons.  UANI is an issue-based coalition in which each coalition member will have its own interests as well as the collective goal of advancing an Iran free of nuclear weapons.





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