Identifier
Created
Classification
Origin
08MOSCOW2715
2008-09-10 12:44:00
CONFIDENTIAL
Embassy Moscow
Cable title:
NIGERIAN EMBASSY SAYS GAZPROM DEAL "JUST AN
how-toVZCZCXRO9571 PP RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR DE RUEHMO #2715 2541244 ZNY CCCCC ZZH P 101244Z SEP 08 FM AMEMBASSY MOSCOW TO RUEHC/SECSTATE WASHDC PRIORITY 9921 INFO RUCNCIS/CIS COLLECTIVE PRIORITY RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY RUEHUJA/AMEMBASSY ABUJA PRIORITY 0037 RUEHOS/AMCONSUL LAGOS PRIORITY 0129 RHEHNSC/NSC WASHDC PRIORITY RHMFISS/DEPT OF ENERGY WASHINGTON DC PRIORITY
C O N F I D E N T I A L MOSCOW 002715
SIPDIS
DEPT FOR EUR/RUS, FOR EEB/ESC/IEC GALLOGLY AND WRIGHT
EUR/CARC, SCA (GALLAGHER, SUMAR)
DOE FOR FREDRIKSEN, HEGBORG, EKIMOFF
E.O. 12958: DECL: 09/08/2018
TAGS: EPET ENRG ECON PREL RS
SUBJECT: NIGERIAN EMBASSY SAYS GAZPROM DEAL "JUST AN
OUTLINE"
Classified By: Econ MC Eric T. Schultz for Reasons 1.4 (b/d)
-------------------------------
DEAL STILL IN "EMBRYONIC" STAGE
-------------------------------
C O N F I D E N T I A L MOSCOW 002715
SIPDIS
DEPT FOR EUR/RUS, FOR EEB/ESC/IEC GALLOGLY AND WRIGHT
EUR/CARC, SCA (GALLAGHER, SUMAR)
DOE FOR FREDRIKSEN, HEGBORG, EKIMOFF
E.O. 12958: DECL: 09/08/2018
TAGS: EPET ENRG ECON PREL RS
SUBJECT: NIGERIAN EMBASSY SAYS GAZPROM DEAL "JUST AN
OUTLINE"
Classified By: Econ MC Eric T. Schultz for Reasons 1.4 (b/d)
--------------
DEAL STILL IN "EMBRYONIC" STAGE
--------------
1. (C) Gazprom announced on September 3 that it has signed an
MOU with the Nigerian National Petroleum Company (NNPC) to
implement joint exploration, production, and transportation
projects in Nigeria's hydrocarbons sector. According to
Gazprom's statement the two sides will establish a joint
venture to carry out future projects. Nigerian Economic
Counselor Onesimus Atanze told us September 9 that the deal
is "just an outline" for cooperation. He said the proposal
is still in the "embryonic" stage and contains no financial
commitments and few details.
2. (C) Atanze said this is the first such agreement between
the two companies. He said Nigeria has long sought to
develop its gas resources, but that there has been little
interest on the part of international oil and gas companies.
He said he believes Gazprom will bring valuable experience
and expertise in gas development to Nigeria. According to
Atanze, any gas resulting from a future Gazprom-NNPC project
would be destined for Nigeria's domestic consumption.
--------------
COMMENT
--------------
3. (C) Gazprom is leaving no stone unturned in its bid to
expand internationally. As this deal and others suggest, its
approach is to get something, anything, signed as quickly as
possible and work on details later. Hashing out details of
this deal, however, could prove problematic. Gazprom's
strategic goals of controlling stakes in as much future LNG
as possible and building up assets to swap with other
international players may clash with Nigeria's more parochial
goals of supplying its domestic market. Furthermore, NNPC
may come to realize why Gazprom is not exactly known for its
technical prowess in offshore gas fields or in onshore jungle
terrain. All that said, given Nigeria's and Russia's
reputations for corruption, a Gazprom-NNPC joint venture
could be interesting to watch.
BEYRLE
SIPDIS
DEPT FOR EUR/RUS, FOR EEB/ESC/IEC GALLOGLY AND WRIGHT
EUR/CARC, SCA (GALLAGHER, SUMAR)
DOE FOR FREDRIKSEN, HEGBORG, EKIMOFF
E.O. 12958: DECL: 09/08/2018
TAGS: EPET ENRG ECON PREL RS
SUBJECT: NIGERIAN EMBASSY SAYS GAZPROM DEAL "JUST AN
OUTLINE"
Classified By: Econ MC Eric T. Schultz for Reasons 1.4 (b/d)
--------------
DEAL STILL IN "EMBRYONIC" STAGE
--------------
1. (C) Gazprom announced on September 3 that it has signed an
MOU with the Nigerian National Petroleum Company (NNPC) to
implement joint exploration, production, and transportation
projects in Nigeria's hydrocarbons sector. According to
Gazprom's statement the two sides will establish a joint
venture to carry out future projects. Nigerian Economic
Counselor Onesimus Atanze told us September 9 that the deal
is "just an outline" for cooperation. He said the proposal
is still in the "embryonic" stage and contains no financial
commitments and few details.
2. (C) Atanze said this is the first such agreement between
the two companies. He said Nigeria has long sought to
develop its gas resources, but that there has been little
interest on the part of international oil and gas companies.
He said he believes Gazprom will bring valuable experience
and expertise in gas development to Nigeria. According to
Atanze, any gas resulting from a future Gazprom-NNPC project
would be destined for Nigeria's domestic consumption.
--------------
COMMENT
--------------
3. (C) Gazprom is leaving no stone unturned in its bid to
expand internationally. As this deal and others suggest, its
approach is to get something, anything, signed as quickly as
possible and work on details later. Hashing out details of
this deal, however, could prove problematic. Gazprom's
strategic goals of controlling stakes in as much future LNG
as possible and building up assets to swap with other
international players may clash with Nigeria's more parochial
goals of supplying its domestic market. Furthermore, NNPC
may come to realize why Gazprom is not exactly known for its
technical prowess in offshore gas fields or in onshore jungle
terrain. All that said, given Nigeria's and Russia's
reputations for corruption, a Gazprom-NNPC joint venture
could be interesting to watch.
BEYRLE