Identifier
Created
Classification
Origin
05TEGUCIGALPA893
2005-04-27 16:59:00
UNCLASSIFIED
Embassy Tegucigalpa
Cable title:  

SEAS WITHOUT FRONTIERS; OIL DRILLING WITHOUT FEARS:

Tags:  PBTS PREL PGOV ECON EPET EWWT SENV SNAR MX HO 
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UNCLAS TEGUCIGALPA 000893 

SIPDIS

STATE FOR WHA/CEN, WHA/MEX, WHA/PPC, AND WHA/USOAS
STATE FOR L, OES, INL/LP, AND EB/ESC

E.O. 12958: N/A
TAGS: PBTS PREL PGOV ECON EPET EWWT SENV SNAR MX HO
SUBJECT: SEAS WITHOUT FRONTIERS; OIL DRILLING WITHOUT FEARS:
HONDURAS-MEXICO SIGN MARITIME TREATY

UNCLAS TEGUCIGALPA 000893

SIPDIS

STATE FOR WHA/CEN, WHA/MEX, WHA/PPC, AND WHA/USOAS
STATE FOR L, OES, INL/LP, AND EB/ESC

E.O. 12958: N/A
TAGS: PBTS PREL PGOV ECON EPET EWWT SENV SNAR MX HO
SUBJECT: SEAS WITHOUT FRONTIERS; OIL DRILLING WITHOUT FEARS:
HONDURAS-MEXICO SIGN MARITIME TREATY


1. On April 18th, Mexico and Honduras signed a maritime
delimitation treaty for waters in the Caribbean. Both
countries agreed to share all information that will assist in
finding petroleum deposits and to formalize an agreement for
an efficient and equitable exploitation of such deposits.
Foreign Minister of Mexico, Luis Ernesto Derbez, said: "This
treaty shows other nations that it is possible to resolve
conflicts in a peaceful manner and at the same time respect
international law." He also stated that this accord would
improve the two countries' ability to combat new threats
within the region, such as drug trafficking and terrorism.


2. This treaty signing came at a time of strong Honduran
support of FM Derbez's bid for the OAS Secretary General
position.


3. The treaty, under negotiation since 2003, defines the
maritime limits and the exclusive economic zone of both
countries, based on the UN Convention of the Law of the Sea.
It sets up a commission that will handle mutual cooperation
plans in the areas of common interest. The agreement
promises cooperation to protect and preserve the marine
environment, navigation security, search and rescue, and
scientific research. If petroleum deposits were one day
found in the area, both countries would develop the fields to
scientific and industry standards and then share the profits
and production.


4. The signing of this treaty opens doors for Honduras to
complete several other pending maritime treaties with
Guatemala, Belize, Jamaica, Nicaragua, and Cuba. Honduras
has already signed maritime border treaties with the UK, in
regards to the area near the Grand Caimans, and with
Colombia. It currently has a maritime dispute in The Hague
with Nicaragua over whether their maritime borders delineate
on the 15th or 17th parallels. Its maritime negotiations with
Cuba seem to hinge on Honduras' vote on the UNCHR Cuban Human
Rights issue; however, MFA officials said that the maritime
agreement with Mexico, which adjoins the Honduran-Cuban
maritime frontier, could facilitate the conclusion of a
Honduras-Cuba agreement.


5. Post has not reviewed the text of this treaty, but from
published descriptions it appears that the treaty includes
provisions for "unitization" of any maritime oil fields.
Such provisions are increasingly common in the oil sector,
and stem from a recognition that oil fields frequently cross
maritime borders, but competitive exploitation of the field
on both sides of the border can actually damage the field and
reduce production. It, therefore, makes more sense to
develop the field according to responsible scientific and
industry standards, with an agreement in place to then share
the production or the profits.


6. Comment: To our knowledge, the area in question is not
one currently being explored or developed for petroleum
production. Moreover, of the 32 exploration wells reportedly
drilled in Honduras since 1920, only one showed signs of
hydrocarbons, and that reportedly was not in commercial
quantities. Recent speculation in the Honduran press aside,
Post sees no indication of significant oil sector interest in
Honduras as a potential frontier oil province. End comment.

Pierce