Identifier
Created
Classification
Origin
07CARACAS1672
2007-08-22 19:14:00
CONFIDENTIAL
Embassy Caracas
Cable title:
CONOCOPHILLIPS UPDATE: STILL FAR APART
how-toVZCZCXRO7382 RR RUEHDE DE RUEHCV #1672 2341914 ZNY CCCCC ZZH R 221914Z AUG 07 FM AMEMBASSY CARACAS TO RUEHC/SECSTATE WASHDC 9548 INFO RUEHHH/OPEC COLLECTIVE RUEHAC/AMEMBASSY ASUNCION 0868 RUEHBO/AMEMBASSY BOGOTA 7476 RUEHBR/AMEMBASSY BRASILIA 5978 RUEHBU/AMEMBASSY BUENOS AIRES 1664 RUEHLP/AMEMBASSY LA PAZ 2573 RUEHPE/AMEMBASSY LIMA 0847 RUEHSP/AMEMBASSY PORT OF SPAIN 3475 RUEHQT/AMEMBASSY QUITO 2664 RUEHSG/AMEMBASSY SANTIAGO 3990 RUEHDG/AMEMBASSY SANTO DOMINGO 0499 RUMIAAA/HQ USSOUTHCOM MIAMI FL RHEHAAA/WHITEHOUSE WASHDC RHEBAAA/DEPT OF ENERGY RUCNDT/USMISSION USUN NEW YORK 0911 RUCPDOC/DEPT OF COMMERCE RUEATRS/DEPT OF TREASURY RHEHNSC/NSC WASHDC
C O N F I D E N T I A L CARACAS 001672
SIPDIS
SIPDIS
ENERGY FOR CDAY AND ALOCKWOOD
NSC FOR JCARDENAS AND JSHRIER
E.O. 12958: DECL: 01/12/2017
TAGS: EPET ENRG EINV ECON VE
SUBJECT: CONOCOPHILLIPS UPDATE: STILL FAR APART
REF: CARACAS 1481
Classified By: Economic Counselor Andrew N. Bowen for Reason 1.4 (D)
C O N F I D E N T I A L CARACAS 001672
SIPDIS
SIPDIS
ENERGY FOR CDAY AND ALOCKWOOD
NSC FOR JCARDENAS AND JSHRIER
E.O. 12958: DECL: 01/12/2017
TAGS: EPET ENRG EINV ECON VE
SUBJECT: CONOCOPHILLIPS UPDATE: STILL FAR APART
REF: CARACAS 1481
Classified By: Economic Counselor Andrew N. Bowen for Reason 1.4 (D)
1. (C) Econ Counselor and Petroleum Attache met with
ConocoPhillips (CP) Latin America President Roy Lyons
(strictly protect throughout) and Government Affairs Manager
Alex Martinez (strictly protect throughout) on August 22 to
discuss the current status of CP's negotiations on
compensation for expropriated assets with the BRV (Reftel).
Lyons stated he met with Energy Vice Minister Bernard Mommer
twice last week but stated the parties are still billions of
dollars apart. He stated CP was willing to lower its
valuation of the assets by hundreds of millions of dollars
but not by billions.
2. (C) Mommer stated the BRV planned on creating an eight
member steering committee to handle negotiations and
requested that CP set up a similar committee. CP stated
there was no reason to set up a committee if the two parties
could not agree on the basic issue of compensation. CP also
told the BRV that it had given it its final proposal on the
compensation issue.
3. (C) When asked about the status of former CP and
strategic association employees, Lyons replied that CP has
placed 60 employees from the Corocoro project and the
Ameriven and Petrozuata strategic associations in CP's
international system. He added that only half of the 80
strategic association employees agreed to transfer to the
respective PDVSA-controlled joint ventures under a change of
employer program. The additional employees at the strategic
associations have not recieved their new compensation
packages but CP believed the packages would contain pay cuts
of 25 to 70% depending on the level of the employee.
FRENCH
SIPDIS
SIPDIS
ENERGY FOR CDAY AND ALOCKWOOD
NSC FOR JCARDENAS AND JSHRIER
E.O. 12958: DECL: 01/12/2017
TAGS: EPET ENRG EINV ECON VE
SUBJECT: CONOCOPHILLIPS UPDATE: STILL FAR APART
REF: CARACAS 1481
Classified By: Economic Counselor Andrew N. Bowen for Reason 1.4 (D)
1. (C) Econ Counselor and Petroleum Attache met with
ConocoPhillips (CP) Latin America President Roy Lyons
(strictly protect throughout) and Government Affairs Manager
Alex Martinez (strictly protect throughout) on August 22 to
discuss the current status of CP's negotiations on
compensation for expropriated assets with the BRV (Reftel).
Lyons stated he met with Energy Vice Minister Bernard Mommer
twice last week but stated the parties are still billions of
dollars apart. He stated CP was willing to lower its
valuation of the assets by hundreds of millions of dollars
but not by billions.
2. (C) Mommer stated the BRV planned on creating an eight
member steering committee to handle negotiations and
requested that CP set up a similar committee. CP stated
there was no reason to set up a committee if the two parties
could not agree on the basic issue of compensation. CP also
told the BRV that it had given it its final proposal on the
compensation issue.
3. (C) When asked about the status of former CP and
strategic association employees, Lyons replied that CP has
placed 60 employees from the Corocoro project and the
Ameriven and Petrozuata strategic associations in CP's
international system. He added that only half of the 80
strategic association employees agreed to transfer to the
respective PDVSA-controlled joint ventures under a change of
employer program. The additional employees at the strategic
associations have not recieved their new compensation
packages but CP believed the packages would contain pay cuts
of 25 to 70% depending on the level of the employee.
FRENCH