Identifier
Created
Classification
Origin
06NDJAMENA1163
2006-09-20 14:34:00
UNCLASSIFIED
Embassy Ndjamena
Cable title:  

CHEVRON FINALLY ABLE TO ARRIVE, GOC PRESSES ON

Tags:  ECON EFIN ENRG PGOV CD 
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RUEHLO/AMEMBASSY LONDON 1566
RUEHNM/AMEMBASSY NIAMEY 2827
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RUCPDOC/USDOC WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS SECTION 01 OF 02 NDJAMENA 001163 

SIPDIS

SIPDIS

DEPT FOR AF, EB, E FOR STEPHEN NEWHOUSE, ENERGY FOR CAROLYN
GAY AND GEORGE PEARSON, TREASURY FOR OTA, LONDON AND PARIS
FOR AFRICA WATCHERS, DAKAR FOR FCS REPRESENTATIVE CYNTHIA
GRIFFITH GREENE

E.O. 12958: N/A
TAGS: ECON EFIN ENRG PGOV CD
SUBJECT: CHEVRON FINALLY ABLE TO ARRIVE, GOC PRESSES ON
WITH RENEGOTIATIONS

REF: NDJAMENA 1137

UNCLAS SECTION 01 OF 02 NDJAMENA 001163

SIPDIS

SIPDIS

DEPT FOR AF, EB, E FOR STEPHEN NEWHOUSE, ENERGY FOR CAROLYN
GAY AND GEORGE PEARSON, TREASURY FOR OTA, LONDON AND PARIS
FOR AFRICA WATCHERS, DAKAR FOR FCS REPRESENTATIVE CYNTHIA
GRIFFITH GREENE

E.O. 12958: N/A
TAGS: ECON EFIN ENRG PGOV CD
SUBJECT: CHEVRON FINALLY ABLE TO ARRIVE, GOC PRESSES ON
WITH RENEGOTIATIONS

REF: NDJAMENA 1137


1. (SBU) SUMMARY: After a brief delay, Chevron, which
finally received authorization to arrive in Chad, will meet
GOC officials on Thursday to try to pay its taxes, per the
September 7 agreement in Paris between President Deby and CEO
O'Reilly. The GOC continues to press on with preparations
for the renegotiation of the 1988 and 2004 conventions.
Civil society, while in support of the GOC efforts to
consider a renegotiation, questions whether the GOC has the
technical expertise to negotiate an agreement beneficial for
the Chadian people. END SUMMARY.

- - - - - - - - - - - -
CHEVRON FINALLY ARRIVES
- - - - - - - - - - - -


2. (SBU) A Chevron team, led by General Manager Carole Rock,
has finally arrived in N'Djamena to begin technical
discussions with GOC authorities on the payment of taxes in
accordance with the agreements on September 7 between Chadian
President Idriss Deby Itno and Chevron CEO Dave O'Reilly.
Rock told Economic/Consular officer on September 19 that the
decision to enter into the country came down to the wire, as
Chevron had not received a letter from the Chadian Office of
the Presidency until three hours before the Chevron
authorities were supposed to depart Paris for N'Djamena.


3. (SBU) Once at the airport, Chadian immigration
authorities permitted the Chevron team to pass through
customs after seeing the letter from the Presidency. Rock
said that the team would meet officials at the Ministry of
Finance and the National Tax Director to hammer out the
details on the actual payment. Rock did not comment on
whether the tax payment calculation proposed by Chevron
matched the GOC's tax assessment, but hoped that a resolution
would be reached on a technical level.

- - - - - - - - - - - - - - - - - -
MINISTER OF PETROLEUM ON OIL MATTERS
- - - - - - - - - - - - - - - - - -


4. (SBU) On September 18, newly-appointed Minister of
Petroleum Emmanuel Nadingar told Ambassador Wall that Chevron

was welcome into the country to hammer out the technical
details of its tax payments to the GOC. The company,
however, needed to make sure that Chadian authorities were
aware of the agreement made between President Deby and CEO
O'Reilly, as only a handful of GOC officials were present in
the meeting in Paris. Nadingar also noted his hope that
Chevron's tax calculations were fair and conformed to what
the GOC felt it was entitled to from Chevron.


5. (SBU) The Minister continued to say that the GOC was
still moving ahead with the planning of the renegotiation of
the 1988 and 2004 oil conventions with the Consortium. The
Government's national commission had already begun
discussions on the renegotiation, and a group of technical
experts had been formed to assist the national commission's
efforts. The Ambassador encouraged Nadingar to consider
approaching the Embassy on its concerns before going public
with dramatic announcement (as was done by President Deby in
his August 26 decision to expel Chevron and Petronas). The
Minister agreed and said that the GOC would keep the U.S.
Embassy informed of developments during the course the
negotiations with the Consortium.


6. (SBU) The Ambassador also introduced the Department of
Treasury's Resident Advisor to the Revenue Management College
(CCSRP),and stressed the importance that the U.S. placed on
supporting the activities of the College. Nadingar said the
GOC welcomed any resources that would help it to better

NDJAMENA 00001163 002 OF 002


manage its oil revenues, and hoped that the technical
assistance for the College would continue. He pointed out
that the GOC was committed to the transparent management of
its oil revenues, and would work with the international
community to ensure that revenues were used for poverty
alleviation.

- - - - - - - - - - -
CIVIL SOCIETY'S VIEWS
- - - - - - - - - - -


7. (SBU) Civil society representatives hosted a workshop on
September 16 to present their views publicly on the GOC's
decision to renegotiate the 1988 and 2004 conventions with
the Consortium. The workshop revealed that civil society
representatives believe that the conventions need to be
renegotiated to allow the GOC a stake in the production of
the country's crude oil. However, they questioned whether
the GOC has the technical means to adequately negotiate with
the oil companies, who, they claimed during the workshop, had
a greater level of expertise in negotiations. The
representatives also expressed their belief that the GOC was
doing little to inform the public on the technical aspects of
the current convention and plans for the GOC to enter into
the oil production process, and called on the national oil
commission to do more to inform the public on its activities.


WALL