CHEVRON CONTAINERS OF CLEAN-UP WASTE BLOCKED BY

C O N F I D E N T I A L KINSHASA 001068

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: DECL: 09/06/2017
TAGS: ECON ENRG EPET
SUBJECT: CHEVRON CONTAINERS OF CLEAN-UP WASTE BLOCKED BY
GDRC AT BOMA

Classified By: EconOff Christopher T. Corkey for reasons 1.4 b/d.


1. (C) SUMMARY. The GDRC Ministry of Trade has blocked the
export of 50 twenty-foot containers of Chevron,s petroleum
exploration waste at the port of Boma. Chevron excavated a
20-year-old waste disposal site 24 miles from Boma in
Bas-Congo province, and filled the containers with waste to
be re-processed in Holland. Chevron says it obtained
permission from both the Ministry of the Environment and the
Ministry of Hydrocarbons, but the Ministry of Trade is now
preventing Chevron from loading the containers for shipment.
One of the containers may now be leaking, and any further
delay increases the chance of a negative environmental
impact. END SUMMARY.


2. (C) Between 1986 and 1989, the GDRC allowed Chevron to
bury waste from its petroleum exploration activities in
Bas-Congo province, 188 miles from Kinshasa. Chevron sold
its off-shore concessions to French-owned Perenco in 2004,
but re-entered the market with its 2005 purchase of Unocal.
Chevron, in 2006, initiated a clean-up of the waste burial
site 24 miles from Boma. (Note: The Basel Convention,
designed to reduce the movement of hazardous waste between
countries and specifically to reduce the transfer of waste to
less developed countries, has created incentives to execute
this type of clean-up. End note.) Chevron could not delay
the excavation or the transfer of containers to Boma because
of the upcoming rainy season, which would make both
excavation and transportation impossible. The waste is still
in twenty-foot sealed containers at the port of Boma as of
September 4, awaiting GDRC approval for export.


3. (C) Resident Chevron representative Koni Mukoka told
EconOff that the GDRC Ministry of the Environment granted the
initial permission for the excavation of waste near Boma.
According to Mukoka, the Ministry of Hydrocarbons attempted
to halt the excavation, but then granted permission to
excavate and export the waste after visiting the site and
inspecting the waste. Chevron claims to have tested the
waste and found no radioactivity or dangerous levels of
toxicity. According to the representative, the containers
were sealed and transferred to the port of Boma for eventual
transport to their intended destination, a processing plant
in Holland. The Ministry of Trade has now blocked the export
of the containers, claiming that Chevron does not have
permission from the DRC to export "merchandise" to the ROC.
(Note: The containers would be transported by small container
ships, able to access Boma, to larger ships at Pointe Noire,
ROC. End note.)


4. (C) The Chevron representative told us the DRC Ministry of
Trade could require permission to export to the ROC only if
these shipments were, in fact, "merchandise." Because the
containers hold only waste, Mukoka claims the Ministry is
really seeking a financial gain from Chevron for the
clean-up. If the matter is not resolved, Mukoka said Chevron
will leave the containers in Boma and tell the Ministry that
it is responsible for any damages. Although Chevron remains
optimistic that the containers will be allowed to leave,
Mukoka said he has received reports that one of the
containers has begun to leak.


5. (C) COMMENT: Chevron,s current investment in the DRC is
minimal, with no on-shore concessions and only 17% of the
off-shore concessions (33% of the off-shore concessions is
owned by Japan-based Teikoku, and 50% by France-based
Perenco). Chevron,s presence is important, however, because
of the natural gas pipeline (not yet functional) from Cabinda
to the rest of Angola, which crosses DRC territorial waters.
Post expects Chevron will eventually be allowed to export the
waste, but the spectre of leaking containers raises
environmental concerns. Post will continue to monitor the
situation; hopefully Chevron will get the containers out
before the rainy season begins in September/October. END
COMMENT.
BROCK