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