UNCLAS YAOUNDE 000497

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EB/ESC/IEC, AF/C
DOE FOR CAROLYN GAY
EUCOM FOR J5-A AFRICA DIVISION AND POLAD YATES

E.O. 12958: N/A
TAGS: ENRG EPET PREL CM EK
SUBJECT: NOBLE ENERGY BRIEFS BIYA ON EXPLORATION PLANS IN
CAMEROON



1. (SBU) Summary. President Paul Biya on April 18 told
Charles Davidson, the visiting president and CEO of U.S.
energy exploration company Noble Energy, that he welcomed
U.S. investment in Cameroon in all sectors. Biya committed
his government's full support to Noble and all other U.S.
investors. After hearing that Noble will be drilling in 500
meters of water in the Gulf of Guinea, Biya told Davidson
that if the company did not find oil there, he would welcome
exploration in the Bakassi peninsula on Nigeria's border.
End summary.


2. (U) President Biya met for over 30 minutes with Davidson,
Noble Executive VP/COO David Stover and other Noble
executives, accompanied by Charge. Davidson explained that
Houston-based Noble Energy was an exploration and development
company that was one of the first firms to operate in
Equatorial Guinea. Noble continues to have active interests
there as well as in locations throughout the world, including
China. Davidson told Biya that Noble had high hopes for its
planned activities in Cameroon and would maximize synergies
because its block is adjacent to one the company has in EG.
Davidson told Biya that because of the depth of the water
where Noble will drill - 500 meters - there was no guarantee
they would find oil. But he said their research indicated a
high likelihood of success.


3. (U) Biya stressed his support for U.S. investment,
offering an illustrative anecdote. He told us that the
president of another country (he did not specify which)
confided that he had given an oil exploration concession to a
non-U.S. firm, which searched for years but found nothing.
He then offered the concession to a U.S. firm, which promptly
found oil. Biya said he was pleased that U.S. investors are
interested in Cameroon, and assured Davidson of the full
support of the government. Biya specifically noted that SNH,
the national hydrocarbon corporation, was attached to the
Presidency. He told Davidson that if he ever had any
difficulty dealing with any ministry or SNH, he and the
Embassy could and should bring the matter directly to him.


4. (SBU) Comment. The very fact that Biya received the Noble
delegation reflects the importance he attaches to U.S.
investment in Cameroon. Biya has offered assurances of full
government support before, but U.S. firms continue to be
frustrated by the effort required to navigate Cameroon's
bureaucracy and fend off corrupt officials. Biya's comments
on Bakassi could indicate that he is starting to focus on the
economic development of that region now that Nigerian troops
have withdrawn and the transition to full Cameroonian control
is underway. End Comment.
NELSON