Identifier
Created
Classification
Origin
06NOUAKCHOTT365
2006-03-31 15:49:00
CONFIDENTIAL
Embassy Nouakchott
Cable title:  

DISPUTE ENDS BETWEEN MAURITANIA AND WOODSIDE

Tags:  BBSR EINV EPET ECON EFIN MR 
pdf how-to read a cable
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DE RUEHNK #0365 0901549
ZNY CCCCC ZZH
P 311549Z MAR 06
FM AMEMBASSY NOUAKCHOTT
TO RUEHC/SECSTATE WASHDC PRIORITY 5314
INFO RUEHBY/AMEMBASSY CANBERRA PRIORITY 0250
RUEHBAD/AMCONSUL PERTH PRIORITY 0214
RHMFISS/CDR USEUCOM VAIHINGEN GE
RUEHZK/ECOWAS COLLECTIVE
RUCNISL/ISLAMIC COLLECTIVE
RUEAIIA/CIA WASHDC
RUEKDIA/DIA WASHDC
RUEHNO/USMISSION USNATO 0162
RUCPDOC/USDOC WASHDC
C O N F I D E N T I A L NOUAKCHOTT 000365 

SIPDIS

SIPDIS

STATE FOR AF/W; AF/EPS (A. ADLER, J. HAENI)
EB/ESC/IEC(K. RIOS)
E"//BB DD WINSTEAD)
4510/IEP/ANESA/OA/PMICHELINI
6930/ITA/MAS/MFG/OEEI/ABRICKMAN
DAKAR FOR RSCO CGRIFFIN

E.O. 12958: DECL: 03/30/2016
TAGS: BBSR EINV EPET ECON EFIN MR
SUBJECT: DISPUTE ENDS BETWEEN MAURITANIA AND WOODSIDE

REF: A. NOUAKCHOTT 00330


B. NOUAKCHOTT 00170

C. NOUAKCHOTT 00111

Classified By: Amb. Joseph LeBaron, Reason 1.4 (b),(d)

C O N F I D E N T I A L NOUAKCHOTT 000365

SIPDIS

SIPDIS

STATE FOR AF/W; AF/EPS (A. ADLER, J. HAENI)
EB/ESC/IEC(K. RIOS)
E"//BB DD WINSTEAD)
4510/IEP/ANESA/OA/PMICHELINI
6930/ITA/MAS/MFG/OEEI/ABRICKMAN
DAKAR FOR RSCO CGRIFFIN

E.O. 12958: DECL: 03/30/2016
TAGS: BBSR EINV EPET ECON EFIN MR
SUBJECT: DISPUTE ENDS BETWEEN MAURITANIA AND WOODSIDE

REF: A. NOUAKCHOTT 00330


B. NOUAKCHOTT 00170

C. NOUAKCHOTT 00111

Classified By: Amb. Joseph LeBaron, Reason 1.4 (b),(d)

1.(U) During separate press conferences on the night of
March 30, Colonel Fal and Prime Minister Sidi Mohamed Ould
Boubacar formally announced to the country that the dispute
with Woodside had ended. A Woodside press release dated
March 31 confirms that the two parties "have reached an
agreement in principle to settle the dispute." Meanwhile,
former Minister of Oil and Energy Zeidane Ould H'meyda, who
was charged with fraud relating to the Woodside dispute, was
released from jail late last night by he Mauritanian
government.


2. (U) Boubacar'sstatement wentt into some detail about the
agreeent. Woodside will pay Mauritania a USD 100 millio
"bonus" 14 days after a new production sharing ontract is
signed. Woodside will also pay an addiional USD 1 million a
year into an environmentalfund. Finally, Mauritania will
also receive agreater share of profit on sale of oil above
USD55 per barrel, Boubacar announced.


3. (U) In hs speech, Boubacar said that the four production
haring contract amendments which the government ha accused
the former oil minister of fraudulentlysigning were
"suspended and will be cancelled" ater a new contract is
signed based on the agreemnt reached.


4. (C) Woodside's Corporate AffairsManager Brendan Augustin
declined to provide speifics tto Embassy Econ Officer
Ghildyal on the agreement other than to confirm Boubacar's
announcement. But he said Woodside was not "happy with the
amount of disclosure in the Prime Minister's speech." He
indicated that there were other parts of the settlement
favorable to Woodside which the Prime Minister did not
mention, giving the false impression, according to Augustin,
that Woodside gave in completely to the government's
position.


5. (C) Augustin said, however, that Woodside is "happy with
the outcome and it gives us a base to continue working and we
see this as a genuine agreement," but he added "we are not
happy with the way the Mauritanians have handled the entire
situation publicly." Woodside's head of operations in
Mauritania, John Ozturgut, was outside the country and
unavailable for comment.

--------------
Comments
--------------


6. (C) Embassy will report additional details as they become
available. It is unlikely, however, that either side will
make available the text of the new agreement.


7. (C) This new agreement appears to be a significant win
for the Mauritanians. Beyond the USD 100 million "bonus" for
the Mauritanians and other benefits, the new agreement will
strengthen the broad popular support the junta and
transitional government already enjoy throughout much of the
country.
LeBaron