Posted on 04/22/2007 5:36:58 AM PDT by nuconvert
Iran signs gas deal with Austria’s OMV
4/22/2007
REUTERS
TEHRAN • Iran signed a major agreement with Austrian energy group OMV yesterday to help develop the country's vast gas resources and build a plant for liquefied natural gas (LNG), official Iranian media said.
State television described it as Iran's biggest such contract with Europe, and some Iranian media put its total value at up to $30bn over 25 years, including the sale of billions of cubic metres of natural gas to the continent.
But OMV made clear the deal was still at an early stage and did not give any figures, suggesting it had so far only signed a non-binding memorandum of understanding.
It comes at a time of escalating tension between the West and Iran over Tehran's disputed nuclear programme. The United States, which accuses Iran of seeking to build atom bombs, has urged its allies not to invest in the Islamic Republic.
Iran sits atop the world's second-largest gas reserves after Russia. But politics, sanctions and construction delays have slowed its gas development and analysts say it is unlikely to become a major exporter for a decade.
The huge oil and gas reserves are a strong magnet for international energy companies despite the political risks.
"Officials of Iran's Oil Ministry and the managing director of the Austrian OMV have signed a gas agreement worth $18bn," Iranian state radio said. The Oil Ministry's Shana news agency estimated the long term value at $30bn.
OMV said it had signed a so-called Heads of Agreement – a non-binding document outlining the main issues of a tentative partnership accord-with Iran's national oil company NIOC.
It concerned participation in the development of an area of the South Pars gas field, an LNG plant and a subscriber agreement for such gas, it said. LNG is gas frozen to liquid for transport in special tankers, avoiding the need for pipelines.
TALKS CONFIDENTIAL
The Austrian firm said Iran could supply LNG for a Croatian regasification plant which OMV is helping to set up and which should start operating in 2011-2012.
It added: "Further talks on this matter are confidential. Concrete results are not expected until the second half of 2007."
UN sanctions have been imposed on Iran for its refusal to halt enrichment of uranium, but OMV spokesman Thomas Huemer said the agreement with Iran did not violate any international rules.
"We are acting within the framework of Austrian law, European law and the United Nations' rules," he said in Vienna.
Iran says its atom work is aimed at generating electricity so that it can export more of its valuable gas and oil.
pong
Pinging
This is...disturbing to say the least.
In still other news I spent last week making air filters to send to China.
“Recently, however, the business has been suffering, losing money and market share because of subpar marketing and growing competition from other countries.”
Looks like it was run into the ground first by poor management among other things. It was bought for 107 million.
Too bad it couldn’t have been an American firm, or a firm residing in one of our allied countries, that bought it. Too bad our leaders don’t have the courage to prevent communist capital from aquiring our assets right and left.
Yeah, it stinks. It looks like they were bought and sold a few times before this time also. Basically, Hoover doesn’t exist anymore except for the name which is most likely what this company was buying.
Regards
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.