Identifier
Created
Classification
Origin
08KUALALUMPUR703
2008-08-08 06:27:00
UNCLASSIFIED
Embassy Kuala Lumpur
Cable title:  

BLUE LANTERN RESPONSE ON MALAYSIAN FIRM'S APPEAL

Tags:  ETTC KOMC MY 
pdf how-to read a cable
VZCZCXYZ0006
RR RUEHWEB

DE RUEHKL #0703 2210627
ZNR UUUUU ZZH
R 080627Z AUG 08
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC 1460
INFO RUEKJCS/SECDEF WASHDC
RHMFIUU/HQ BICE WASHINGTON DC
RHMFIUU/FBI WASHINGTON DC
RUEAIIA/CIA WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
UNCLAS KUALA LUMPUR 000703 

SIPDIS

PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC MY
SUBJECT: BLUE LANTERN RESPONSE ON MALAYSIAN FIRM'S APPEAL
ON PRE-LICENSE END-USE CHECK ON APPLICATION 050088296

REF: EMAIL ON 7 AUGUST 2008

UNCLAS KUALA LUMPUR 000703

SIPDIS

PM/DTCC - BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: ETTC KOMC MY
SUBJECT: BLUE LANTERN RESPONSE ON MALAYSIAN FIRM'S APPEAL
ON PRE-LICENSE END-USE CHECK ON APPLICATION 050088296

REF: EMAIL ON 7 AUGUST 2008


1. Pursuant to reftel email inquiry, KL Embassy Econ staff
re-contacted Orogenic Resources - a Malaysian firm located
outside of Kuala Lumpur that had appealed a negative USG
response on its request to purchase eight (8) G2000
Gyroscopes manufactured by Northrop Grumman, Litton Systems
Inc. Contrary to their uncooperative communication before,
this time Orogenic was amenable to open dialogue and a site
visit. Econoff visited the site on 28 July and received a
briefing from three Orogenic Resources managers, as well as a
site tour. The Orogenic managers, including Mr. Saidi Ideris
and Mr. Ku Izhar Ku Bahurudin -- apologized profusely for
their earlier refusal to provide a site visit and for their
miscommunication. They showed two video presentations and
allowed a question and answer session which satisfactorily
responded to Econoff's requirements. Afterwards, the
Orogenic managers showed Econoff the location where the
gyroscopes would be kept if Orogenic is allowed to purchase
them. The storage facility appeared secure.


2. The USG refusal to sell the gyroscopes enabled a 180
degree turnaround of cooperation from Orogenic, which
apparently had thought that minimal cooperation with the U.S.
Embassy was all that it needed to secure the sale. With the
USG refusal, Orogenic saw the writing on the wall and agreed
to cooperate. With this in mind, Econoff was able to find
answers to his questions and now recommends the sale. As
background, the managers said that Orogenic's principal
customers are Petronas, Hess, Shell, ExxonMobil, and Murphy
Oil, and that Orogenic has a separate "Mud Logging and
Gyroscope" division, which was featured within the video
presentations and handouts that were given to Econoff. The
company intends to use the gyroscopes with petrochemical
customers such as , to determine if new oil wells in
Malaysia are being accurately drilled. More specifically,
the equipment is used for bore hole surveys on about 10
separate oil drilling rigs.


3. The company plans to order approximately two of the
gyroscopes in the near future (2008),followed by two
gyroscopes over the next three years (through 2011). The
company claimed that it does not wish to purchase them all at
once. The company's headquarters facility is a medium-sized
facility in the Shah Alam industrial district -- specifically
No. 17 Jalan Astaka U8/84 Seksyen U8, Bukit Jelutong, 40150
Shah Alam, Malaysia. Orogenic employees would be handling
the gyroscopes at all times. Now that Orogenic Resources has
proven to be cooperative, we recommend completion of the
proposed sale.
KEITH