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NEWS: 'I told the UAE: "Why don't you think about nuclear?"' (FT) Print E-mail
Written by Jay Ruskin   
Wednesday, 09 July 2008

The United Arab Emirates, Egypt, and Algeria may soon be getting nuclear reactors for the production of electricity if the plans of French supermajor Total and Italy's Eni are realized, the Financial Times reported Wednesday.[1]  --  "The strategy has its critics, not least those concerned at the spread of nuclear power in such a volatile region," wrote Carola Hoyos.  --  "However, oil industry sources said Total had the full support of the French government.  The oil company's new-found interest fits well with France's ambitions to advance its nuclear technology internationally." ...

1.

TOTAL AND ENI IN PLANS TO TRADE CRUDE FOR REACTORS IN MIDDLE EAST
By Carola Hoyos

Financial Times (London)
July 9, 2008

http://www.ft.com/cms/s/0/9eb2a854-4d5d-11dd-8143-000077b07658.html

Total and Eni, two of Europe's biggest oil and gas companies, each plans to bring nuclear power to countries in the Middle East in what would be a contentious shift in an industry being squeezed out of many of the biggest oil and gas fields.

Total planned to help build nuclear power plants with a view to negotiating better terms and access in the oil and gas industry in countries with which it has long relationships, Christophe de Margerie, chief executive, told the Financial Times.

The strategy, he said, was behind plans unveiled in January for Total, French nuclear group Areva and utility Suez to build two pressurized water reactors in the United Arab Emirates. He expected to sign a similar deal with another Middle Eastern country soon.

In a separate interview, Paolo Scaroni, chief executive of Eni, said he was considering following Total's lead. Egypt and Algeria were possible candidates.

Nuclear companies have failed to gain a significant foothold in the Middle East because executives assumed the gas-rich region would not need their services.

However, other than Qatar, many countries have failed to tap their gas resources and face looming shortages amid booming economies and growing gas-heavy industries such as petrochemicals. Mr. de Margerie said: "I told the UAE: 'Why don't you think about nuclear?'" He added that in the longer term Total could also help India build reactors. It would not settle for a broker's fee for such a deal, he said. "Why should we get rewarded just as electricity contractors?"

Mr. Scaroni said Eni would suggest nuclear plants instead of gas for power generation to countries that either needed gas for other uses in their growing internal markets or to sell abroad. "It is logical for us [to say to them]: 'We make nuclear and you keep the gas.'"

Oil companies had the experience of complex projects and contacts in countries that could benefit from nuclear power, he said.

Mr. Scaroni said it would be harder for Eni to go nuclear than for Total. "For us it is difficult, but not impossible," he said.

The strategy has its critics, not least those concerned at the spread of nuclear power in such a volatile region.

However, oil industry sources said Total had the full support of the French government. The oil company's new-found interest fits well with France's ambitions to advance its nuclear technology internationally.

 


 
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