KING HAMAD LOOKS TIRED, BUT OTHERWISE WELL;

C O N F I D E N T I A L MANAMA 000873

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/12/2017
TAGS: ENRG EPET ETTC IR PGOV PREL BA
SUBJECT: KING HAMAD LOOKS TIRED, BUT OTHERWISE WELL;
FOCUSES ON ENERGY AND IRAN

REF: A) MANAMA 827 B) MANAMA 666

Classified By: AMBASSADOR ADAM ERELI FOR REASONS 1.4 (b) and (d).


1. (C) During his audience with the Ambassador to present
credentials, King Hamad looked tired, but bore no visible
signs of impairment. The audience took place around five
p.m. His voice was raspy and he appeared fatigued, as one
would at the end of a long day. He favored his right side,
moving his left arm little, but no part of his face or arm
were immobilized. In fact, toward the middle of the
20-minute discussion, he became more animated, moving and
gesturing decisively to emphasize his points.


2. (C) King Hamad spoke at some length about Bahrain's
energy needs and his thinking on how to meet them. Bahrain's
future, he said, depended on finding new energy resources.
Echoing what we have heard separately from the Foreign
Minister (Ref A),Iran has offered to provide gas from the
Pars field and the two countries have begun talks. Bahrain
does not intend to conclude an agreement, the King declared.
The aim of the discussions, the King said, is to "wake up"
the neighbors (e.g., Qatar and Saudi Arabia),who he believes
will come to their senses and agree on terms with Bahrain
rather than let the Iranians further expand their presennce
in the region.


3. (C) The King expressed frustration with the Abu Safa
agreement with Saudi Arabia, under which Aramco operates the
joint field and provides Bahrain with approximately 150,000
b/d for sale on the market. Bahrain is interested in further
development of the field, and the potential for gas
discoveries in particular, but is frustrated with Aramco's
refusal to share any technical data or allow Bahraini
entities access to the field.


4. (C) Comment: The King's discourse revealed a clear
concern for Bahrain's limited energy resources and the
implications for future economic development. Aluminum
Bahrain (ALBA) relies upon gas to power its smelting of
aluminum, a key Bahraini export. ALBA's future expansion, if
it is to keep pace with regional competition, will be
dependant upon access to adequate gas supplies. Commercial
contacts relay anecdotal reports of building projects being
hampered by a lack of available electricity. Recent power
cuts, while likely attributable to insufficient transmission
capacity, contribute to a general climate of uncertainty over
future power supplies. The King is keenly interested in
attracting American investment for enhanced extraction of
Bahrain's sole national field, Awali, for which a tender has
been issued and at least one U.S. oil major is likely to
submit a bid (Ref B).

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ERELI