Identifier
Created
Classification
Origin
08CARACAS1712
2008-12-15 14:43:00
CONFIDENTIAL
Embassy Caracas
Cable title:
VENEZUELA: CHEVRON CONFIRMS INTEREST IN HEAVY OIL
how-toVZCZCXRO6552 RR RUEHDE DE RUEHCV #1712 3501443 ZNY CCCCC ZZH R 151443Z DEC 08 FM AMEMBASSY CARACAS TO RUEHC/SECSTATE WASHDC 2294 INFO RUEHHH/OPEC COLLECTIVE RUEHBO/AMEMBASSY BOGOTA 7914 RUEHBR/AMEMBASSY BRASILIA 6086 RUEHLP/AMEMBASSY LA PAZ 2843 RUEHPE/AMEMBASSY LIMA 1120 RUEHSP/AMEMBASSY PORT OF SPAIN 3636 RUEHQT/AMEMBASSY QUITO 2934 RHEBAAA/DEPT OF ENERGY RUCPDOC/DEPT OF COMMERCE RHEHNSC/NSC WASHDC RUMIAAA/HQ USSOUTHCOM MIAMI FL
C O N F I D E N T I A L CARACAS 001712
SIPDIS
ENERGY FOR CDAY AND ALOCKWOOD
NSC FOR JSHRIER
USSOUTHCOM ALSO FOR POLAD
E.O. 12958: DECL: 12/04/2018
TAGS: EPET ENRG EINV ECON VE
SUBJECT: VENEZUELA: CHEVRON CONFIRMS INTEREST IN HEAVY OIL
BID ROUND
REF: CARACAS 1540
Classified By: Economic Counselor Darnall Steuart for reason 1.4(d)
C O N F I D E N T I A L CARACAS 001712
SIPDIS
ENERGY FOR CDAY AND ALOCKWOOD
NSC FOR JSHRIER
USSOUTHCOM ALSO FOR POLAD
E.O. 12958: DECL: 12/04/2018
TAGS: EPET ENRG EINV ECON VE
SUBJECT: VENEZUELA: CHEVRON CONFIRMS INTEREST IN HEAVY OIL
BID ROUND
REF: CARACAS 1540
Classified By: Economic Counselor Darnall Steuart for reason 1.4(d)
1. (C) Economic Counselor met briefly December 4 with Chevron
President for Africa and Latin AMERICA Exploration and
Production Ali Moshiri. Moshiri was accompanied by Wes
Lohec, Managing Director of Chevron's Latin AMERICA Business
Unit. Moshiri first underlined that Venezuela continues to be
important from a "resource position" for Chevron. Moshiri
added, however, that he perceived the functioning of the U.S.
Embassy as a "red line" for the continued viability of
Chevron's investments in Venezuela. EconCouns confirmed that
the Embassy had faced additional difficulties since the
expulsion of Ambassador Duddy but said the Embassy continues
to operate under adverse circumstances. She added that she
had just helped Chevron with a visa question relating to one
of it employees. Moshiri noted delicately that Chevron is
perceived by the GBRV as Venezuela's "energy link" to the
United States. This position has perhaps given Chevron more
fQxibility than that given to other joint venture partners
and the GBRV had, in the past, approached Chevron for
assistance in dealing with U.S. issues. Moshiri then offered
Chevron's assistance to the Embassy in dealing with the GBRV
if it were needed. EconCouns said the Embassy had identified
the Ministry of Foreign Affair's Protocol Director as a
roadblock.
2. (C) Moshiri confirmed that Chevron is pursuing an interest
in the heavy oil production blocks offered in the Carabobo
block bid round launched October 30. He identified financing
as the greatest risk in the current international
environment. He added, however, that Chevron would
ultimately only move ahead with a project if it were to
receive an "ironclad" legal guarantee from the Venezuelan
government. Moshiri said Chevron had learned its lesson from
its experience with the nationalization of the heavy oil
Hamaca project. The Hamaca project agreements were only
signed with PDVSA. Any future agreements will, he said, not
only be approved by the National Assembly but also include
Chavez's signature. According to Lohec, the 19 companies
that purchased the Carabobo data pack included BP, Chevron,
Ecopetrol, ENI, GALP, Inpex (Teikoku),Japan Oil and Gas,
Mitsubishi, ONGC, Perobras, Petronas, Repsol, Shell, Sinopec,
Statoil, Suelopetrol, Total, CNPC, and a "Russian Consortium."
--------------
COMMENT
--------------
3. (C) It is widely rumored in the Caracas oil patch that the
GBRV perceives Chevron as a preferred partner to lead one of
the winning Carabobo block consortia.
CAULFIELD
SIPDIS
ENERGY FOR CDAY AND ALOCKWOOD
NSC FOR JSHRIER
USSOUTHCOM ALSO FOR POLAD
E.O. 12958: DECL: 12/04/2018
TAGS: EPET ENRG EINV ECON VE
SUBJECT: VENEZUELA: CHEVRON CONFIRMS INTEREST IN HEAVY OIL
BID ROUND
REF: CARACAS 1540
Classified By: Economic Counselor Darnall Steuart for reason 1.4(d)
1. (C) Economic Counselor met briefly December 4 with Chevron
President for Africa and Latin AMERICA Exploration and
Production Ali Moshiri. Moshiri was accompanied by Wes
Lohec, Managing Director of Chevron's Latin AMERICA Business
Unit. Moshiri first underlined that Venezuela continues to be
important from a "resource position" for Chevron. Moshiri
added, however, that he perceived the functioning of the U.S.
Embassy as a "red line" for the continued viability of
Chevron's investments in Venezuela. EconCouns confirmed that
the Embassy had faced additional difficulties since the
expulsion of Ambassador Duddy but said the Embassy continues
to operate under adverse circumstances. She added that she
had just helped Chevron with a visa question relating to one
of it employees. Moshiri noted delicately that Chevron is
perceived by the GBRV as Venezuela's "energy link" to the
United States. This position has perhaps given Chevron more
fQxibility than that given to other joint venture partners
and the GBRV had, in the past, approached Chevron for
assistance in dealing with U.S. issues. Moshiri then offered
Chevron's assistance to the Embassy in dealing with the GBRV
if it were needed. EconCouns said the Embassy had identified
the Ministry of Foreign Affair's Protocol Director as a
roadblock.
2. (C) Moshiri confirmed that Chevron is pursuing an interest
in the heavy oil production blocks offered in the Carabobo
block bid round launched October 30. He identified financing
as the greatest risk in the current international
environment. He added, however, that Chevron would
ultimately only move ahead with a project if it were to
receive an "ironclad" legal guarantee from the Venezuelan
government. Moshiri said Chevron had learned its lesson from
its experience with the nationalization of the heavy oil
Hamaca project. The Hamaca project agreements were only
signed with PDVSA. Any future agreements will, he said, not
only be approved by the National Assembly but also include
Chavez's signature. According to Lohec, the 19 companies
that purchased the Carabobo data pack included BP, Chevron,
Ecopetrol, ENI, GALP, Inpex (Teikoku),Japan Oil and Gas,
Mitsubishi, ONGC, Perobras, Petronas, Repsol, Shell, Sinopec,
Statoil, Suelopetrol, Total, CNPC, and a "Russian Consortium."
--------------
COMMENT
--------------
3. (C) It is widely rumored in the Caracas oil patch that the
GBRV perceives Chevron as a preferred partner to lead one of
the winning Carabobo block consortia.
CAULFIELD