GOK AWAITS NEGOTIATING TEAM FOR MNF-I FUEL CONTRACT

C O N F I D E N T I A L KUWAIT 002772

SIPDIS

STATE FOR PM, NEA, NEA/ARP, NEA/NGA

E.O. 12958: DECL: 08/24/2014
TAGS: MOPS PREL EAID MARR PGOV KU IZ
SUBJECT: GOK AWAITS NEGOTIATING TEAM FOR MNF-I FUEL CONTRACT

REF: KUWAIT 02747

Classified By: Charge d'Affaires Matthew H. Tueller, Reasons 1.4(a),
(b) and (d)


1. (U) This is an action request; see paragraph 4.


2. (C) CDA was called to a meeting with Minister of Energy
Sheikh Ahmad Al-Fahd on August 24 to discuss the MNF-I fuel.
The Minister said that he had been tasked by the GOK to
resolve the matter, in response to the recent meeting in
Washington (reftel). He listed a number of ways that the GOK
has supported the U.S. in OIF (electricity, water, land,
ports) and also listed a number of problems he has
encountered in the National Assembly (NA) specifically
because of this support, citing the GOK's assistance to
Jordan and provision of humanitarian fuel aid to Iraq (the
Altanmia/KBR contract). The GOK did not ask for any
contractual agreement or payment for MNF-I fuel "even after
the President stopped the war," but needed to ask for this
one thing now. The GOK needed to have a contract in hand
before the start of the next NA session, in order to be in
compliance with its own laws. The GOK budgeted money for
fuel and other OIF costs in the previous fiscal year, but not
for the current fiscal year, which began in April.


3. (C) CDA said that Washington does understand that Kuwait
has been a strong ally, but that suspension of fuel would
have serious repercussions on the stability and security of
Iraq. The Minister said that the GOK was "amenable to
finding a solution" and needed to reach a contractual
agreement as soon as possible. The Minister also said that a
contract for the continued provision of fuel could go into
effect while a contractual price is worked out at a higher
political level.


4. (C) Action Request: Embassy requests Department provide
the details on the contract negotiating team that will arrive
in Kuwait and their itinerary, if possible, by Wednesday,
August 25. A technical team from the Kuwait Petroleum
Company (KPC) and the Minister's office will conduct the
contract negotiations, under supervision by the Minister.


5. (U) Baghdad minimize considered.
TUELLER