TIDEX STRIKE CONTINUES - THREE AMCITS RETURN TO

C O N F I D E N T I A L SECTION 01 OF 03 LAGOS 000509

SIPDIS

STATE FOR AF/W
STATE FOR CA/OCS/SDENYER
STATE FOR EB/ESC/IEC/ENR/BLEVINE
STATE FOR DS/IP/AF
STATE FOR INR/AA
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: 04/04/2015
TAGS: EPET EINV CASC PGOV ASEC MOPS NI
SUBJECT: TIDEX STRIKE CONTINUES - THREE AMCITS RETURN TO
WORK; TENSIONS STILL HIGH

REF: A. LAGOS 494


B. LAGOS 502

C. LAGOS 503

Classified By: Consul General Brian L. Browne for Reasons 1.4 (D & E)

Summary
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1. (C) Striking employees continue to prevent Tidex vessels
and non-Nigerian crew members from leaving the ports of Onne,
Escravos and Brass. However, the crews of two of the four
vessels in Escravos returned to work. Three AMCITs were
included in the two crews; ten AMCITs are still detained.
Onne strikers again threatened the expatriates when port
management officials attempted to move two boats. Tidex may
soon notify Vanuatu two of its flag vessels are among the
detained ships. Mission has been in contact with senior GON
and Tidex officials over the weekend to resolve the
situation, and will continue with such efforts.

Two Crews Return to Work in Escravos
--------------


2. (C) On April 2, crews of two of the four vessels in
Escravos crossed the picket line and returned to work. Three
AMCITs, including one vessel captain, were among the crews.
Ten AMCITs remain on vessels under control of the strikers.

Movement Order for 2 Vessels Prompts
Threat to Expat Safety
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3. (C) Tidex Nigeria Managing Director (MD) Bob Vaughn told
Energy Officer that Intels, the port management company in
Onne, attempted to move two vessels today. After a visit by
Intels officials, the strikers refused to move the vessels,
and threatened the safety of the expatriates. The strikers
also threatened to react should any of the expatriates try to
leave the vessel. Over the past few days, Tidex had removed
from the vessels three expatriates who had resigned. Tidex's
ability to remove further expatriates from the ships now
seems in doubt.

Tidex to File Documents on the Vanuatu Flag Vessels
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4. (C) Tidex clarified the two vessels with Cameroonian
crews are registered in the island state of Vanuatu.
Tidewater management will make a final determination tonight
whether to formally notify Vanuatu the two vessels are
illegally detained. McNee and Vaughn have explained to us
that Tidewater is required to notify a flag nation when their
vessels are detained. This notice could elevate the profile
of this crisis, and will likely lead to the Government of
Vanuatu becoming involved.

Presidential Advisor Expresses
Concern and Pledges Support
--------------


5. (C) Mission continues to urge the GON to peacefully
resolve the situation. On April 2, Tidewater Executive Vice
President Stephen Dick (recently arrived in Nigeria to work
on the issue),Tidewater Senior Vice President McNee, MD
Vaughn, and Energy Officer met Dr. Edmund Daukoru,
Presidential Adviser for Petroleum Resources. Daukoru
expressed concern for the length of the strike and pledged
support for a peaceful resolution. Daukoru was on his way
out of the country on Saturday and said his deputy, Alhaji
Paki, would take charge of the situation in his absence. The
Consul General has also talked to Dr. Daukoru, and will
follow up with Paki. Daukoru indicated the Minister of Labor
likely will take the lead overall for the federal government
for this situation.

NLC President Urges Dialog
--------------


6. (C) On April 1, Econ Officer contacted Nigerian Labour
Congress (NLC) President Adams Oshiomhole to ask for
assistance. On April 3, Oshiomhole told Econ Officer he had
spoken with Vaughn and with the national leadership of the
unions. Oshiomhole urged Tidex to commit to serious dialog
with the union after the hostages are released. Oshiomhole
believes the relationship between the strikers and their
union is badly frayed, with many "gaps" and in need of many
"bridges." He said he is working with the union's national
leadership to discuss options. He emphasized the need to end
the hostage situation and to ratchet down tensions on all
sides.

Tidex Meets with Department of Petroleum Resources;
DPR Urges Work with Unions and States to Resolve
-------------- --------------


7. (C) On April 4, SVP McNee, MD Vaughn, and Energy Off met
with the Acting Head of the Department of Petroleum
Resources, (DPR, the government regulatory agency for the
petroleum industry),D.O. Oloketuyi. Oloketuyi was concerned
by the length of the strike and threats of violence. He
indicated Tidex should work through the unions and at the
state level to resolve the issue. He is drafting a report
for the GON outlining the situation. He indicated this would
allow the GON to request official assistance from the states
to resolve the situation. The Consul General will meet
Oloketuyi on April 5.

Tidex Management Grows Increasingly Frustrated;
Unions May be Racheting Up Demands
-------------- -


8. (C) In an April 3 conversation with Ambassador and ACS
Officer, McNee and Vaughn reported NUPENG and PENGASSAN
appear to be ratcheting up their demands (Note: As the unions
and Tidex management are not in direct negotiations, reports
regarding union demands are largely second-hand.) Earlier
they indicated they would return to work if Tidex management
agreed to negotiate; they now are also demanding increased
wages before they will sit down at the negotiating table.
McNee and Vaughn are growing increasingly frustrated, and
stated they will not be forced to the negotiating table while
their workers are being detained.


9. (C) In meeting DPR's Oloketuyi, McNee and Vaughn
mentioned they may begin looking at "other options," meaning
a military or police action. They emphasized to Energy Off
they will not negotiate under duress, with strikers using
crew members and vessels as bargaining chips. McNee
emphasized the large sums of money both Tidex and the majors
are losing with this strike. He and Vaughn said they believe
the strikers are unarmed, and a show of force would likely
scare them into releasing all crewmembers and vessels.
Mission continues to emphasize the need to exercise patience,
and the need for Tidex to allow the GON -- just appraised of
the situation over the weekend -- sufficient time to resolve
the situation. Unfortunately, Tidex management failed to
bring the seized vessels to the attention of either the USG
or GON for three weeks. Now, their patience seems to be
fraying just days into our efforts to assist them.


10. (C) Mission Security Officer visited the Onne port
today to view the situation. He reported the area appeared
orderly and relatively calm. He saw no signs of weapons.
BROWNE