France inks energy deals with Qatar during Sarkozy visit

DOHA (AFP) — France and Qatar signed electricity and nuclear power deals on Monday after President Nicolas Sarkozy arrived in Doha from Saudi Arabia, where he forecast that Paris would win multi-billion dollar contracts in the future.

Areva Transmission and Distribution, a subsidiary of French nuclear power group Areva, signed a contract worth 470 million euros (695 million dollars) for the supply of sub-stations to provide electricity throughout Qatar with the Gulf state's water and electricity company Kahrama, a source in Sarkozy's delegation said.

A memorandum of understanding was also inked by Qatar with Electricite de France (EDF) to "discuss cooperation in the production of nuclear power and renewable -- solar and wind -- energies," the source said.

The talks will initially cover an agreement to help conduct a feasibility study and will not involve an investment, the source said.

Another MoU provided for cooperation at the international level between Qatar Petroleum International and Gaz de France.

French and Qatari officials also discussed a series of other accords potentially worth 6.3 billion euros (9.3 billion dollars).

Around 20 business bosses, including Areva chief executive Anne Lauvergeon and Christophe de Margerie, head of the Total oil group, were accompanying the French leader in the Qatari capital.

Before leaving the Saudi capital earlier on Monday, Sarkozy had reiterated an offer to Arab and Muslim countries to share French expertise to develop civilian nuclear energy.

On Tuesday, France is expected to sign an accord on civilian nuclear cooperation with the United Arab Emirates, the third and final stage of Sarkozy's Gulf tour.

It will be the third such agreement with an Arab country, following those reached with Algeria and Libya in December.

Sarkozy told the Saudi Shura (consultative) Council "it is in the name of justice that France believes that access to civilian nuclear power should be the right of all peoples."

In a speech to the 150-strong advisory council, Sarkozy said: "France wants to be a friend of Saudi Arabia, a friend of the Arab world, a friend who does not lecture but tells the truth."

While not signing any firm commercial deals in Saudi Arabia, the president said French companies would in the weeks and months ahead sign major contracts with Riyadh potentially worth 40 billion euros (59 billion dollars).

"They are immense contracts, both civilian and military," Sarkozy told reporters. "We are talking about 40 billion euros in potential deals."

A presidential aide said current talks between the two sides focused on land transport, civil aviation, water and electricity, internal security and weapons.

Sarkozy, who is on his first Gulf tour since taking office in May, stressed the close ties between Riyadh and Paris.

An aide said the president suggested to King Abdullah that a team from France's Atomic Energy Commission (CEA) visit Riyadh "in the coming weeks to work on the question of civilian nuclear power." The king noted the suggestion.

Four cooperation agreements were signed late on Sunday in Riyadh, one covering oil, gas and mineral resources, two others on university training in France and professional training, and one on "political dialogue" at foreign ministry level.

Sarkozy also said that Paris "unreservedly supports" an Arab League plan to resolve the political crisis in Lebanon, describing it as "fully compatible" with proposals made by France.