Identifier
Created
Classification
Origin
08RIYADH1864
2008-12-29 06:53:00
UNCLASSIFIED
Embassy Riyadh
Cable title:  

SAUDI ARABIA'S NUCLEAR ENERGY PLANS

Tags:  ENRG TRGY BEXP BTIO SA 
pdf how-to read a cable
VZCZCXRO5727
RR RUEHDE RUEHDIR
DE RUEHRH #1864/01 3640653
ZNR UUUUU ZZH
R 290653Z DEC 08
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC 9693
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS SECTION 01 OF 02 RIYADH 001864 

SIPDIS

COMMERCE FOR SARAH LOPP
STATE FOR MARC HUMPHREY

E.O. 12958: N/A
TAGS: ENRG TRGY BEXP BTIO SA
SUBJECT: SAUDI ARABIA'S NUCLEAR ENERGY PLANS

REF: A. SECSTATE 127423

B. SECSTATE 65500

C. RIYADH 1667

D. RIYADH 1244

----------
KEY POINTS
----------

-- Key Saudi officials have made clear their intention to
acquire nuclear energy but as yet have not developed specific
plans.

-- These Saudi officials have expressed an interest in
nuclear development with the U.S. as its partner, an interest
formalized with an agreement signed by President Bush and
King Abdullah in May 2008.

-- U.S.-Saudi cooperation is on hold until Saudi Arabia
deposits a nuclear Safeguards Agreement with the IAEA, which
Saudi officials assure is coming soon.

-- Saudi officials have shown an interest in working with
U.S. commercial firms in the nuclear energy field.

-- Foreign competitors, including France, Russia, Belgium,
and Canada, are lobbying for future nuclear-related
contracts.

---------------------------------------
Nuclear Planning at a Formative Stage
---------------------------------------

UNCLAS SECTION 01 OF 02 RIYADH 001864

SIPDIS

COMMERCE FOR SARAH LOPP
STATE FOR MARC HUMPHREY

E.O. 12958: N/A
TAGS: ENRG TRGY BEXP BTIO SA
SUBJECT: SAUDI ARABIA'S NUCLEAR ENERGY PLANS

REF: A. SECSTATE 127423

B. SECSTATE 65500

C. RIYADH 1667

D. RIYADH 1244

--------------
KEY POINTS
--------------

-- Key Saudi officials have made clear their intention to
acquire nuclear energy but as yet have not developed specific
plans.

-- These Saudi officials have expressed an interest in
nuclear development with the U.S. as its partner, an interest
formalized with an agreement signed by President Bush and
King Abdullah in May 2008.

-- U.S.-Saudi cooperation is on hold until Saudi Arabia
deposits a nuclear Safeguards Agreement with the IAEA, which
Saudi officials assure is coming soon.

-- Saudi officials have shown an interest in working with
U.S. commercial firms in the nuclear energy field.

-- Foreign competitors, including France, Russia, Belgium,
and Canada, are lobbying for future nuclear-related
contracts.

--------------
Nuclear Planning at a Formative Stage
--------------


1. Saudi Arabia has only recently begun to examine how
nuclear energy can best meet its national needs. Government
statements have noted that Saudi Arabia would benefit from
the ability to produce electricity from nuclear sources as
well as to power expanded desalination operations. Part of
the Saudi rationale is to reduce the domestic consumption of
oil in order to free up more of this revenue-producing
resource for export. Saudi officials regard the acquisition
of nuclear power to be important to Saudi Arabia's future,
while insisting that they are in no hurry.


2. The organization charged with leading the Saudi planning
effort is the King Abdulaziz City for Science and Technology,
headed by its President, Dr. Mohammed Al-Suwaiyel. King
Abdulaziz University in Jeddah, which hosted an International
Symposium on the Peaceful Uses of Nuclear Energy in November,
has also played a role in bringing academic and technical
attention to the issue of civil nuclear development in the
region.


3. In May 2008, King Abdullah and President Bush signed an
agreement that pledged U.S. support for Saudi Arabia as it
builds a peaceful nuclear energy program. Since then there
have been two visits by the State Department's acting
Assistant Secretary for International Security and
Nonproliferation Affairs to discuss future U.S.-Saudi
cooperation on nuclear development. The next step to be taken
toward launching this cooperation is the conclusion of a 123
Agreement. However, USG has made clear that prior to closing
a 123 Agreement, Saudi Arabia must deposit a Safeguards
Agreement letter with the IAEA, which has not yet been done.
Saudi officials have given the Embassy repeated assurances
over recent months that the Safeguards Agreement will be
deposited soon and that it is only a matter of completing a
few administrative procedures.


4. Two Saudi officials who appear to be leading the planning
of Saudi Arabia's nuclear future are Dr. Prince Turki Saud
Mohammed Al-Saud, Vice President for Research Institutes at
KACST and Dr. Khalid Aleissa, Director of the KACST Atomic
Energy Research Institute. At the Ministry of Foreign
Affairs, the nuclear planning portfolio has been put in the
hands of Dr. Prince Turki Saud Al-Kabeer, Undersecretary for
Multilateral Affairs.


5. Saudi Arabia has virtually no nuclear-trained indigenous
workforce. King Abdulaziz University in Jeddah would likely
be the primary domestic institution mobilized to produce a
generation of Saudi nuclear engineers once plans take shape.
Nonetheless, it can be expected that any near movement to
develop civil nuclear power would require significant foreign
manpower and expertise.

--------------
Opportunities for U.S. Business
--------------

RIYADH 00001864 002 OF 002




6. There appears to be strong potential for U.S. firms to
participate in the design and building of Saudi Arabia's
nuclear industry. At the moment, Saudi officials appear to be
looking to the U.S. to play a major role. The two key KACST
planning officials mentioned above, for example, requested to
visit the U.S. in December 2008 to consult with U.S.
commercial companies in the nuclear field with the objective
of studying nuclear technologies appropriate for Saudi
Arabia. However, the KACST officials were advised that such a
visit would not be supported or appropriate unless and until
a Safeguards Agreement was on deposit with the IAEA.


7. Several other nuclear supplier countries are engaging
Saudi Arabia, including China, France, Belgium, Canada, and
Russia. Representatives of companies or research institutes
from each of these countries attended last month's symposium
held by King Abdulaziz University in Jeddah.
RUNDELL