WOODSIDE AND MAURITANIA SIGN REVISED PRODUCTION

C O N F I D E N T I A L NOUAKCHOTT 000701 SIPDIS SIPDIS CIA WASHDC DIA WASHDC USMISSION USNATO USDOC WASHDC E.O. 12958: DECL: 06/07/2016 TAGS: BBSR EINV EPET ECON EFIN MR SUBJECT: WOODSIDE AND MAURITANIA SIGN REVISED PRODUCTION SHARING CONTRACT. REF: A. NOUAKCHOTT 00377 ¶B. NOUAKCHOTT 00365 ¶C. NOUAKCHOTT 00330 Classified By: Amb. Joseph LeBaron, Reason 1.4 (b),(d) 1.(U) On June 6, Woodside and its venture partners signed a revised oil production sharing contract (PSC) for four areas off the coast of Mauritania with Mauritanian Oil and Energy officials. The revised PSC resolves the dispute between the parties over previous amendments to the original PSC. ¶2. (C) Woodside's Corporate Affairs Manager, Brendan Augustin, said the revised PSC will include the "Dubai Agreements" that were negotiated this past February between Woodside and the Mauritanian government. According to a Woodside press release, the major elements of the revised PSC are: -- Exploration periods are secured in line with previous arrangements. -- A bonus of 100 million USD will be paid to the Mauritanian government approximately fourteen days after the approval of the revised PSC B by the Mauritanian government. -- Fiscal incentives will provide a greater share of revenue from the Chinguetti project to the Mauritanian government during periods of high oil prices -- Establishment of an Environment Commission, funded through a 1 million USD annual payment by the Woodside consortium during the life of production under the revised PSC. ¶3. (C) Augustin noted "the 100 million USD bonus will be paid fourteen days after the Ministerial Council approves a draft bill accepting the revised PSC, it is accepted by the CMJD and Colonel Fal and it is then released in the Official Journal." LeBaron