CHEVRONTEXACO'S OUTLOOK ON COLOMBIA

UNCLAS BOGOTA 000164

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: EPET ECON EINV CO
SUBJECT: CHEVRONTEXACO'S OUTLOOK ON COLOMBIA


Sensitive but unclassified. Business proprietary information
-- please protect accordingly.


1. (SBU) Summary. On December 22, Ambassador Wood met with
ChevronTexaco's Chairman of the Board, David O'Reilly, and
other ChevronTexaco executives to discuss oil and gas related
issues in Colombia. O'Reilly was pleased with the
relationship between Colombia and ChevronTexaco, and said his
company is interested in future gas projects, but concerned
about the level of energy sector expertise in the Uribe
Administration. End Summary.


2. (SBU) ChevronTexaco's Chairman met with Ambassador Wood
after earlier meetings with President Uribe and the Minister
of Mines and Energy, Luis Ernesto Mejia. O'Reilly stated
that President Uribe was very enthusiastic about
ChevronTexaco's current investment in Guajira and asked if
more investment was coming. O'Reilly responded that the
investment process takes time, but that ChevronTexaco was
interested in exporting gas to both Venezuela and Panama from
its fields in the north of Colombia in the near term. Per
O'Reilly, Venezuela eventually would like to export gas to
Asian markets via a pipeline to the Pacific.
ChevronTexaco's president for Latin America, Ali Moshiri,
stated that the Colombia-Venezuela gas project is simple in
concept (200km onshore pipeline from Guajira, Colombia to
Maracaibo, Venezuela). Uribe and Chavez agreed at a
political level to a gas pipeline project, but Venezuela has
since requested more surveys and it was not clear that either
leader had specifics in mind when they agreed to the project.
ChevronTexaco is also interested in a possible offshore gas
pipeline to Panama.


3. (U) O'Reilly commented that the investment climate has
dramatically improved, noting that under Uribe contract
negotiations took less than three months as opposed to three
years under other administrations. Ambassador Wood added
that the pro-business Uribe Administration has provided a
predictable business environment in Colombia via reforms,
especially in the hydrocarbon sector.


4. (SBU) O'Reilly relayed his concern regarding oil and gas
expertise in Uribe's Administration. He cited the GOC's
willingness to explore and expand the hydrocarbon industry,
but noted their lack of understanding of the technicalities.
Ambassador Wood relayed President Bush's commitment to
President Uribe to send an energy trade mission to Colombia.


5. (SBU) ChevronTexaco's chairman ended by saying there are
many opportunities in Colombia, but the GOC needs in depth
and objective technical advice regarding Colombia's future in
the hydrocarbon sector.
WOOD