SUBJECT: BLUE LANTERN RESPONSE FOR PRE-LICENSE

UNCLAS KUALA LUMPUR 000500 SIPDIS STATE FOR PM/DTCC BLUE LANTERN PRE-LICENSE END-USE CHECK ON 050088296 E.O. 12958: N/A TAGS: ETTC KOMC MY SUBJECT: SUBJECT: BLUE LANTERN RESPONSE FOR PRE-LICENSE END-USE CHECK ON APPLICATION 050088296 REF: SECSTATE 41081 ¶1. Pursuant to reftel inquiry, econoff contacted Orogenic Resources Sdn. Bhd., a Malaysian firm that had requested to purchase eight G2000 gyroscopes manufactured by Northrop Grumman/Litton System Inc. Orogenic Resources is one of five subsidiaries of a larger parent company, Orogenic Group. Econoff in April, May, and June 2008 contacted Orogenic via email, as the company did not wish to communicate via telephone. After six separate email inquiries, an Orogenic representative provided information about its company in addition to what is posted on its official -- and impressive -- website (www.orogenic.com/my). Orogenic did not give permission for a site visit, although a map on the website indicated its general location outside Kuala Lumpur. ¶2. Per reftel questions, the nature of Orogenic's business is "exploration and production and geo-solution specialist" in the petroleum and natural gas industries. The company has many worldwide operations, and stated that revenue in 2008 was estimated to be 120 million Malaysian ringgit (approximately USD 37 million). Orogenic estimates that circa 40 percent of its income is derived from activity in Malaysian petro production activities, with the remaining 60 percent derived from international operations - mostly in Southeast Asia. The company was established in 1993 and has grown into a firm with more than 300 employees. Its principal officers include Executive Chairman Ziyad Elias and ACEO Marine/Asian Geography Managing Director Dr. Mohamed Helmi Zulkawi. The address listed in septel is the same provided on its website. The firm's list of clients includes several major U.S. oil/gas companies. ¶3. The company representative confirmed that it had ordered the exact type and quantity of items listed on its application, and that Orogenic understands the restrictions on United States Munition List (USML) items. Post cannot confirm whether the company has facilities secure enough to properly account for and handle the equipment, although the website is substantive, professionally done, and has multiple pages from which to learn about the company and pose inquiries. However, econoff discovered that inquiries do not appear to be answered until after much discussion and/or approval from unknown senior company manager(s). Overall, the company appears to be truthfully portraying its activities and the intended use of the gyroscopes. KEITH