CHEVRON'S SECURITY STRATEGY IN DELTA STATE

C O N F I D E N T I A L SECTION 01 OF 02 LAGOS 001163

SIPDIS

STATE PASS DOE FOR DAS JBRODMAN AND CGAY
STATE PASS TREASURY FOR ASEVERENS AND SRENENDER
STATE PASS DOC FOR PHUPER
STATE PASS TRANSPORTATION FOR MARAD
STATE PASS OPIC FOR CDUFFY
STATE PASS TDA FOR BTERNET
STATE PASS EXIM FOR JRICHTER
STATE PASS USTR FOR ASST USTR SLISER
STATE PASS USAID FOR GWEYNAND AND SLAWAETZ

E.O. 12958: DECL: 12/08/2014
TAGS: EPET EINV CASC PGOV ASEC MOPS NI
SUBJECT: CHEVRON'S SECURITY STRATEGY IN DELTA STATE

REF: LAGOS 433

Classified By: Acting Consul General William M. Howe for Reasons 1.4 (B
& D)


1. (U) Summary. Months after successfully containing an
invasion of its facilities in Escravos, Delta State, Chevron
Texaco (CT) characterized the relative quiet in the Niger
Delta region as "the calm before the storm." CT has
registered some small successes in the region, including
involving the Delta State government in negotiations with the
ethnic councils and capacity building projects (see reftel).
The company also believes that significant federal government
involvement is on the horizon; however, the uncertain
political future of the Delta State governor, troubles
incorporating the Itsekiri community into the ethnic
councils, and continued illegal arms sales and money
laundering assistance from abroad continue to impede progress
and cause anxiety. End Summary.

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POLITICS IN THE DELTA
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2. (C) CT chose Delta State as their first target in
building ethnic councils and collaborating more closely with
state governments. Under the ethnic council model, each
major ethnic group in a state elects council representatives
to negotiate collectively with CT (reftel). Hamish
Macdonald, a Chevron consultant from the British firm
MarsOmega, characterized Delta as a "pariah" state, and he
reported recently asking Delta State governor, Chief James
Ibori, "Who in their right mind would invest in Delta State?"
The governor, in turn, admitted that security risks made
Delta an utterly unappealing investment prospect and promised
to play a more significant role in company negotiations with
ethnic communities.


3. (C) Ibori's political future, however, is far from
certain. Now completing his second term, the governor has
been talked about as a potential Vice-President running mate;
however, other sources report that he is seriously
considering leaving politics for a post-grad fellowship at
Princeton University. The short window between now and
election preparations leaves only about six to nine months
for Ibori's current involvement to take root, and CT is
unsure about what will follow.

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COMPANY-COMMUNITY-GOVERNMENT: A NEW PARTNERSHIP
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4. (C) Eight weeks after the Escravos invasion in February,
Delta State sent the state Secretary and the Commissioner for
Conflict Resolution to meetings between CT and community
leaders. A manual for continued state government involvement
has been produced, and CT is certain that state backing is
the key to making the ethnic council strategy succeed where
the "host community" plan has failed (reftel). While the
Ijaw community has responded to the strategy, Itsekiri groups
are still recalcitrant. The Secretary of Delta State,
however, belongs to the Itsekiri community, and CT views his
involvement in recent talks as a boon for future cooperation
across ethnic lines.


5. (C) MacDonald reported that the pillaging of pipelines for
parts poses a bigger problem for CT than oil bunkering in the
Escravos area.

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NATIONAL GOVERNMENT INVOLVEMENT
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6. (C) In February, CT executives spoke with Edmund Dakouru,
now Petroleum Minister, and were encouraged by his vision for
national government participation in negotiations for
regional security and harmony. Dakouro promised to provide
for an improved Niger Delta Development Commission (NDDC),
and he publicly acknowledged that, for their own well-being,
local communities must ensure that oil services experts be
able to operate safely and uninterruptedly.

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LINGERING WORRIES, FUTURE EXPANSION
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7. (C) Despite successes with government involvement and
capacity building programs, CT is still worried by the
overall security climate. Recent events, such as the
prison-break of a key commander of the Niger Delta People's
Vigilante Force (NDPV) do not bode well (reftel). Hamish also
cited concerns about the steady stream of arms and laundered
money, which he said pours in from places like South Africa
and the Ukraine. Nevertheless, Chevron is still plowing
ahead with plans to restore full production at their Escravos
facility, which would eventually represent an additional
150,000 barrels per day.
HOWE