Identifier
Created
Classification
Origin
07RIYADH2056
2007-10-07 13:06:00
CONFIDENTIAL
Embassy Riyadh
Cable title:
NOVEMBER OPEC SUMMIT IN RIYADH
how-toVZCZCXRO3434 OO RUEHDE RUEHDIR DE RUEHRH #2056/01 2801306 ZNY CCCCC ZZH O 071306Z OCT 07 FM AMEMBASSY RIYADH TO RUEHC/SECSTATE WASHDC IMMEDIATE 6694 RHEBAAA/DEPT OF ENERGY WASHINGTON DC IMMEDIATE INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY RUEHHH/OPEC COLLECTIVE PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUEKDIA/DIA WASHINGTON DC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RUEAIIA/CIA WASHDC PRIORITY RHEHNSC/NSC WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 002056
SIPDIS
SIPDIS
DEPT OF ENERGY PASS TO A/S KHARBERT, DAS AHEGBURG,
MWILLIAMSON, GPERSON, AND JHART
EB/ESC FOR SGALLOGLY AND MMCMANUS
E.O. 12958: DECL: 09/17/2017
TAGS: EPET ENRG ECON SA
SUBJECT: NOVEMBER OPEC SUMMIT IN RIYADH
Classified By: Economic Counselor Robert Barry
Murphy for reasons 1.4 (b) (c) and (d).
C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 002056
SIPDIS
SIPDIS
DEPT OF ENERGY PASS TO A/S KHARBERT, DAS AHEGBURG,
MWILLIAMSON, GPERSON, AND JHART
EB/ESC FOR SGALLOGLY AND MMCMANUS
E.O. 12958: DECL: 09/17/2017
TAGS: EPET ENRG ECON SA
SUBJECT: NOVEMBER OPEC SUMMIT IN RIYADH
Classified By: Economic Counselor Robert Barry
Murphy for reasons 1.4 (b) (c) and (d).
1. This is an action request. DOE/International Policy and
EB/ESC please see paragraphs five and nine.
--------------
Summary
--------------
2. (C) On September 30, Energy Attache and DOE Officer met
with Advisor to the Minister of Petroleum and Mineral
Resources (MinPet) and Director of Public Relations Dr.
Ibrahim Al-Muhanna. The conversations focused on upcoming
OPEC events, major proposed U.S. investments, and the recent
election of a new International Energy Forum
Secretary. The Third OPEC Summit is planned for November
SIPDIS
17-18, with an industry exhibit and symposium on the
margins. Al-Muhanna expressed great confidence in Dow's Ras
Tanura Integrated project, but was less optimistic
about the prospects for ConocoPhillip's Yanbu refinery moving
ahead. MinPet is pleased with the election of
Dutchman Noe van Hulst as the new Secretary General of the
International Energy Forum.
-------------- -
OPEC Events: Summit, Exhibit, Symposium;
NPC Study Presentation Planned for Symposium
-------------- --
3. (SBU) The Ministry of Petroleum and Mineral Resources
(MinPet) will host the Third OPEC Summit in Riyadh
on November 17-18, 2007. While the USG would not be invited
to participate in this OPEC-member only event,
MinPet is planning two additional events to coincide with the
summit, which will have wider participation and
not be tied specifically to OPEC membership. MinPet will
host an Industry Exhibit from November 14-16, with
representation from major international industry. The MOP
hopes for participation by Exxon, Chevron and
ConocoPhillips. Shell and ExxonMobil have already told us
they plan to exhibit. MOP is also planning a
two-day Symposium on November 15 and 16. Cambridge Energy
Research Associates (CERA) Chair Dan Yergin has
been invited to speak. Min Pet indicated US Embassy
representatives will be invited to the symposium and
industry event.
--------------
Symposium to Highlight NPC Study
--------------
4. (SBU) MinPet has arranged for ExxonMobil secondee and
National Petroleum Council (NPC) Study lead Allan Kelly to
make a presentation on the NPC's recently-published study,
during the symposium on the margins of the OPEC Summit.
Al-Muhanna praised the NPC study, saying that it shows the
"reality of the market" and is "well balanced and very
logical". He also expressed his hope that the study would be
updated every 4-5 years.
5. (C) Action Request: The political optics of a Secretary
of Energy's National Petroleum Council Study
being presented the margins of an OPEC conference are, at a
minimum, unusual. ExxonMobil has little realistic
choice other than to comply with MinPet's request to make
Allan Kelly available for this presentation. Post
requests that DOE/International Policy and EB/ESC indicate if
they have any specific guidance on handling this
situation. Post will otherwise proceed with plans to attend
the symposium and industry exhibit at the working
level.
--------------
Major US Projects Update: Thumbs Up for Dow,
ConocoPhillips More Uncertain
--------------
6. (C) Moving on to updates of pending major US projects,
Al-Muhanna expressed his confidence in Dow's Ras Tanura
Integrated Project" (RTIP),and stated that, "barring any
RIYADH 00002056 002 OF 002
unforeseen developments," the project will move forward as
planned. (Note: US firm Dow Chemical and Saudi Aramco
signed an MOU for RTIP on May 12, 2007. End note.) He
indicated a public statement on this project would come early
next year. Al-Muhanna is far less optimistic about
the ConocoPhillips/Saudi Aramco Yanbu export refinery
project, and said that Saudi Aramco had not yet formally
forwarded materials on this project to MinPet. However,
there are clearly concerns with the cost structure
circulating around MinPet. When asked about introducing this
project to the MinPet, Al-Muhanna said that it would
be best to plan for a high-level courtesy call, such as a
November meeting between the Minster of Petroleum Naimi
and ConocoPhillips CEO Jim Mulva. Post has advised COP
management of this advice.
--------------
Possible Secretary of Energy visit
--------------
7. (C) Al-Muhanna expressed great interest in the prospect
of a visit to the region by Department of
Energy Secretary Samuel Bodman, and proposed a bilateral
discussion with Petroleum Minister Ali Al-Naimi as
a possible anchor for this visit. In terms of timing,
Al-Muhanna indicated a visit during the first two
weeks in December would be well-received.
-------------- ---
New Secretary of the International Energy Forum
-------------- --------------
8. (C) The Executive Board of the Secretariat of the
International Energy Forum (IEF) selected Mr. Noe van Hulst
as its new Secretary General on September 3 at the IEF's
meeting in Riyadh. Mr. van Hulst, a Dutch national, is
presently serving as Director of the Long-term Cooperation
and Policy Analysis Office of the International Energy
Agency. Mr. van Hulst will succeed Ambassador Arne Walther,
whose tenure as the first Secretary General of
the IEF comes to an end on November 30, 2007. Al-Muhanna
stated that van Hulst had been strongly supported by the
Dutch government, an important point in favor of his
candidacy. He indicated the SAG had not viewed the Russian
candidate as technically well-qualified. In light of the
differences in their technical competencies, Al-Muhanna
was surprised van Hulst won by only one vote, and took this
as a measure of the influence the Russian delegation
was able to bring to bear in the IEF election.
9. Action Request: Al-Muhanna also requested that DOE
revisit the issue of another contribution for the IEF.
Post agreed to relay this request. While recognizing that
IEF funding is an on-going issue, Post requests a
DOE response in light of the appointment of a new Secretary
General, and the arrival of a new fiscal year.
FRAKER
SIPDIS
SIPDIS
DEPT OF ENERGY PASS TO A/S KHARBERT, DAS AHEGBURG,
MWILLIAMSON, GPERSON, AND JHART
EB/ESC FOR SGALLOGLY AND MMCMANUS
E.O. 12958: DECL: 09/17/2017
TAGS: EPET ENRG ECON SA
SUBJECT: NOVEMBER OPEC SUMMIT IN RIYADH
Classified By: Economic Counselor Robert Barry
Murphy for reasons 1.4 (b) (c) and (d).
1. This is an action request. DOE/International Policy and
EB/ESC please see paragraphs five and nine.
--------------
Summary
--------------
2. (C) On September 30, Energy Attache and DOE Officer met
with Advisor to the Minister of Petroleum and Mineral
Resources (MinPet) and Director of Public Relations Dr.
Ibrahim Al-Muhanna. The conversations focused on upcoming
OPEC events, major proposed U.S. investments, and the recent
election of a new International Energy Forum
Secretary. The Third OPEC Summit is planned for November
SIPDIS
17-18, with an industry exhibit and symposium on the
margins. Al-Muhanna expressed great confidence in Dow's Ras
Tanura Integrated project, but was less optimistic
about the prospects for ConocoPhillip's Yanbu refinery moving
ahead. MinPet is pleased with the election of
Dutchman Noe van Hulst as the new Secretary General of the
International Energy Forum.
-------------- -
OPEC Events: Summit, Exhibit, Symposium;
NPC Study Presentation Planned for Symposium
-------------- --
3. (SBU) The Ministry of Petroleum and Mineral Resources
(MinPet) will host the Third OPEC Summit in Riyadh
on November 17-18, 2007. While the USG would not be invited
to participate in this OPEC-member only event,
MinPet is planning two additional events to coincide with the
summit, which will have wider participation and
not be tied specifically to OPEC membership. MinPet will
host an Industry Exhibit from November 14-16, with
representation from major international industry. The MOP
hopes for participation by Exxon, Chevron and
ConocoPhillips. Shell and ExxonMobil have already told us
they plan to exhibit. MOP is also planning a
two-day Symposium on November 15 and 16. Cambridge Energy
Research Associates (CERA) Chair Dan Yergin has
been invited to speak. Min Pet indicated US Embassy
representatives will be invited to the symposium and
industry event.
--------------
Symposium to Highlight NPC Study
--------------
4. (SBU) MinPet has arranged for ExxonMobil secondee and
National Petroleum Council (NPC) Study lead Allan Kelly to
make a presentation on the NPC's recently-published study,
during the symposium on the margins of the OPEC Summit.
Al-Muhanna praised the NPC study, saying that it shows the
"reality of the market" and is "well balanced and very
logical". He also expressed his hope that the study would be
updated every 4-5 years.
5. (C) Action Request: The political optics of a Secretary
of Energy's National Petroleum Council Study
being presented the margins of an OPEC conference are, at a
minimum, unusual. ExxonMobil has little realistic
choice other than to comply with MinPet's request to make
Allan Kelly available for this presentation. Post
requests that DOE/International Policy and EB/ESC indicate if
they have any specific guidance on handling this
situation. Post will otherwise proceed with plans to attend
the symposium and industry exhibit at the working
level.
--------------
Major US Projects Update: Thumbs Up for Dow,
ConocoPhillips More Uncertain
--------------
6. (C) Moving on to updates of pending major US projects,
Al-Muhanna expressed his confidence in Dow's Ras Tanura
Integrated Project" (RTIP),and stated that, "barring any
RIYADH 00002056 002 OF 002
unforeseen developments," the project will move forward as
planned. (Note: US firm Dow Chemical and Saudi Aramco
signed an MOU for RTIP on May 12, 2007. End note.) He
indicated a public statement on this project would come early
next year. Al-Muhanna is far less optimistic about
the ConocoPhillips/Saudi Aramco Yanbu export refinery
project, and said that Saudi Aramco had not yet formally
forwarded materials on this project to MinPet. However,
there are clearly concerns with the cost structure
circulating around MinPet. When asked about introducing this
project to the MinPet, Al-Muhanna said that it would
be best to plan for a high-level courtesy call, such as a
November meeting between the Minster of Petroleum Naimi
and ConocoPhillips CEO Jim Mulva. Post has advised COP
management of this advice.
--------------
Possible Secretary of Energy visit
--------------
7. (C) Al-Muhanna expressed great interest in the prospect
of a visit to the region by Department of
Energy Secretary Samuel Bodman, and proposed a bilateral
discussion with Petroleum Minister Ali Al-Naimi as
a possible anchor for this visit. In terms of timing,
Al-Muhanna indicated a visit during the first two
weeks in December would be well-received.
-------------- ---
New Secretary of the International Energy Forum
-------------- --------------
8. (C) The Executive Board of the Secretariat of the
International Energy Forum (IEF) selected Mr. Noe van Hulst
as its new Secretary General on September 3 at the IEF's
meeting in Riyadh. Mr. van Hulst, a Dutch national, is
presently serving as Director of the Long-term Cooperation
and Policy Analysis Office of the International Energy
Agency. Mr. van Hulst will succeed Ambassador Arne Walther,
whose tenure as the first Secretary General of
the IEF comes to an end on November 30, 2007. Al-Muhanna
stated that van Hulst had been strongly supported by the
Dutch government, an important point in favor of his
candidacy. He indicated the SAG had not viewed the Russian
candidate as technically well-qualified. In light of the
differences in their technical competencies, Al-Muhanna
was surprised van Hulst won by only one vote, and took this
as a measure of the influence the Russian delegation
was able to bring to bear in the IEF election.
9. Action Request: Al-Muhanna also requested that DOE
revisit the issue of another contribution for the IEF.
Post agreed to relay this request. While recognizing that
IEF funding is an on-going issue, Post requests a
DOE response in light of the appointment of a new Secretary
General, and the arrival of a new fiscal year.
FRAKER