HYPERDYNAMICS IS BACK IN BUSINESS

C O N F I D E N T I A L CONAKRY 000454 SIPDIS E.O. 12958: DECL: 08/19/2018 TAGS: ECON EPET PGOV KCRM PREL GV SUBJECT: HYPERDYNAMICS IS BACK IN BUSINESS REF: A. CONAKRY 399 ¶B. CONAKRY 446 ¶1. (C) SUMMARY. Ending a period of rocky relations with the GoG, controversial oil-exploration firm Hyperdynamics will soon begin the next phase of operations after receiving renewed approval from the presidency. The firm has resumed advertising on local television, and reports that revision of their concession is going well, with no changes made to the original agreement so far. Hyperdynamics has consistently cultivated contacts at the presidency, and that strategy seems to be paying off. END SUMMARY. ¶2. (C) On August 7, Minister Secretary-General for the Presidency Alpha Ibrahima Keira authorized Hyperdynamics (HYPD) to begin 3-D imaging of their offshore petroleum concession, the next phase of their exploration. The director of HYPD's Conakry office, Famourou Kourouma, said his firm is in talks with an imaging contracting company and will likely begin imaging in November. Kourouma noted that he had met personally with Keira since he became Minister earlier this month, and that the two "go way back." He said that Keira has "generally been supportive of HYPD, even when he was Minister of Transport" under the government preceding Kouyate. -------------- NEW ADVERTISING -------------- ¶3. (C) HYPD has also resumed their television ad campaign with one new "spot" that talks generally about the firm's drilling operations and how it can help move the country into the future. The Kouyate government had suspended HYPD's advertisements in 2007. -------------- RENEGOTIATIONS "GOING WELL" -------------- ¶4. (C) When asked about the possibility that the GoG might seek to renegotiate HYPD's concession as they recently have with many other major extractive ventures, Kourouma said the government is already taking a second look at their concession. However, he noted that things were "going well," and that after two meetings so far to discuss revisions, the government had "asked for no changes." -------------- COMMENT -------------- ¶5. (C) HYPD's intense lobbying of Guinean government officials in late July (ref A) seems to be paying off, and the firm may have regained the foothold in Guinea that it had lost under the Kouyate government. It also reestablished its relationship to Minister Keira, an ally at the presidency and an influential political player. ¶6. (C) Hyperdynamics has consistently cultivated close ties to the presidency, more recently through former Secretary General Sam Soumah, and now through his successor. (NOTE: Soumah was arrested on August 19, possibly on embezzlement charges - ref B. END NOTE.) Conversely, mining giant Rio Tinto is now in negotiations with the GoG after having their significant mining concession revoked. Rio's local Chief Financial Officer told Charge in a meeting on August 18 that they had not cultivated any relationships with the government and were surprised that their self-identified hands-off, straightforward approach to investment, which had worked well in the U.S. and Australia, has not been as successful in Guinea. END COMMENT. BROKENSHIRE