KUWAIT REQUESTS IMMEDIATE U.S. ASSISTANCE TO

C O N F I D E N T I A L KUWAIT 001063

SIPDIS

STATE FOR NEA/ARP, NEA/FO

E.O. 12958: DECL: 03/23/2013
TAGS: PREL EAID EPET KU SA JO
SUBJECT: KUWAIT REQUESTS IMMEDIATE U.S. ASSISTANCE TO
PROVIDE JORDAN OIL

REF: KUWAIT 858 AND PREVIOUS

Classified By: Ambassador Richard H. Jones for reasons 1.5 (b) and (d)


1. (U) This is an action request. Please see para. 5.


2. (C) Summary: On March 24, the GOK requested immediate USG
assistance in facilitating an oil swap with Saudi Arabia,
thereby providing Jordan with badly needed crude oil. End
Summary.


3. (C) During their March 24 meeting, Kuwaiti MinState for
Foreign Affairs, Shaykh Dr. Mohammed Al-Sabah told the
Ambassador that Jordanian FM Marwan Muasher had recently
contacted him to request that the GOK provide Jordan with its
previously promised oil support. FM Muasher told Dr.
Mohammed that the KSA had informed him that the Yanbu export
terminal had reached it maximum export capacity, and Saudi
Arabia would not be able to help Kuwait meet its commitments
to Jordan. (Note: Publicly available information lists the
East-West Pipeline (Petroline) capacity as 4.8 million
barrels-per-day (bpd) and Yanbu Export Terminal capacity as
4.5 million bpd. End Note.)


4. (C) Dr. Mohammed said Kuwait "will honor its commitments"
and stands ready to support Jordan. However, it has no way
to ship oil to Jordan itself. He proposed that the best
solution would be a Kuwaiti/Saudi oil swap whereby Saudi
Arabia would make 25,000 bpd of oil available at Yanbu and in
return Kuwait would provide 25,000 bpd from its share of
production at the Khafji oil field to Saudi Arabia. He asked
for USG support in persuading Saudi Arabia to agree to such
an arrangement.


5. (C) Action Request: Embassy recommends Department issue
urgent demarche to both Kuwait and Saudi Arabia to fix this
problem between themselves without further delay.
JONES