KUWAIT ACTING OIL MINISTER ON PROJECT KUWAIT,

C O N F I D E N T I A L KUWAIT 005415

SIPDIS

STATE FOR EB/ESC, NEA/ARP, AND NEA/NGA
USDOC FOR 4520/MAC/AME
USDOC FOR 3131/USFCS/OIO/ANESA
USDOE FOR IE - L.COBURN AND C.WASHINGTON
TREASURY FOR OASIA

E.O. 12958: DECL: 12/16/2012
TAGS: EPET ETRD PREL KU SA QA IR ENRG EINV
SUBJECT: KUWAIT ACTING OIL MINISTER ON PROJECT KUWAIT,
QATARI GAS

REF: A. KUWAIT 5019


B. KUWAIT 5296 AND PREVIOUS

Classified By: Ambassador Richard H. Jones for reasons 1.5 (B) and (D)

1.(C) Acting Minister of Oil Sheikh Ahmed Fahed Al-Sabah told
the Ambassador on December 14 that he and the government
remain committed to Project Kuwait (reftel A),and said that
he intends to secure parliamentary approval for the project
before the current session of Parliament ends, during his
term as Minister. When Ambassador noted that U.S. and other
international oil companies are losing patience, the Minister
said it was his intention to work simultaneously with oil
companies and the National Assembly to polish the draft
agreements while securing passage of authorizing legislation.


2. (C) The Ambassador also asked about the status of the
agreement with Qatar for natural gas supplies, and
specifically the pipeline to transit Saudi and Bahraini
waters. The Minister suggested that nothing was happening at
the moment, and when the Ambassador asked if there was a role
for the US to play, the Minister said the Saudis have said
"don't do anything." The Minister inferred that the SAG
just wants to let the situation alone for some time to let
everyone cool off. He added that it's not just Saudi Arabia;
Qatar also has its problems with Bahrain (and Kuwait itself)
over Al-Jazeera.


3. (C) The Minister said that the indefinitely delayed
delivery of Qatari gas should have no significant impact on
Kuwait. The Minister noted that Kuwait intends to proceed
with the development of the offshore Dorra field, and that
this coupled with new wells in Rawdatain should provide
sufficient gas for Kuwait's near-term needs. When the
Ambassador asked if Iran was being considered as a source of
supply, the Minister acknowledged that Kuwait had discussed
the matter with the Iranians, but quickly noted that they had
discussed many similar projects in the past. The Minister
stated flatly Kuwait had no serious intentions of purchasing
Iranian gas.


4. (C) Comment: The Minister's oft repeated message that
Project Kuwait is 'just around the corner' is received again
with hope, but not much optimism. We found his statement
that he wanted to get it done during his term as Minister
interesting in that it seems he does not expect to be Oil
Minister in the next cabinet. As for his strategy of
double-tracking talks with oil companies and the National
Assembly, we've heard this before. We still have not seen an
adequate explanation as to why the GOK continues to wait, or
a commitment to launch this strategy on a date certain and
see it through to the end. End comment.
JONES