NIGERIA: ACTION REQUEST FOR TECHNICAL ASSISTANCE

UNCLAS ABUJA 001469

SENSITIVE
SIPDIS

DEPT PASS AID AFR/SD FOR CURTIS, ATWOOD AND SCHLAGENHAUF
DEPT PASS TO USTDA-PAUL MARIN, EXIM-JRICHTER
DEPT PASS TO USTR-AGAMA
JOHANNESBURG FOR NAGY
USDOE FOR GEORGE PERSON
TREASURY FOR PETERS, SOLOMON AND RITTERHOFF
DOC FOR 3317/ITA/OA/BURRESS AND 3130/USFC/OIO/ANESA/REED

E.O. 12958: N/A
TAGS: EPET EINV ENRG EAGR EAID ELTN NI
SUBJECT: NIGERIA: ACTION REQUEST FOR TECHNICAL ASSISTANCE

REF:

A. ABUJA 1400

B. ABUJA 1328

C. ABUJA 1209

D. ABUJA 1109

E. ABUJA 1096

F. ABUJA 1050

G. ABUJA 549

H. ABUJA 262

I. LAGOS 155

SENSITIVE BUT UNCLASSIFIED; BUSINESS PROPRIETARY INFORMATION; NOT
FOR DISSEMINATION OUTSIDE USG


1. (SBU) This is an action request cable. Please see paragraphs 3
and 4.


2. (SBU) The Ambassador received a letter dated July 23 from Dr.
Rilwanu Lukman, Minister of Petroleum Resources, as follow up to
their meeting on June 8 and requesting USG technical assistance in
reducing gas flaring through the application of new American
gas-to-liquid (GTL) technology. She also received a letter from Dr.
Bello Gusau, Secretary of the Oil and Gas Sector Reform
Implementation Committee (OGIC),requesting U.S. technical
assistance in setting up a policy and two regulatory bodies pursuant
to the omnibus Petroleum Industry Bill (PIB) under consideration by
the National Assembly.


3. (SBU) ACTION REQUEST: With regard to Lukman's request, Post
requests the Office of Economic, Energy and Business Affairs/Energy
Sanctions and Commodities (EEB/ESC) to coordinate an interagency
dialogue with the U.S. Agency for International Development (USAID),
U.S. Department of Energy (USDOE),U.S. Treasury, U.S. Export-Import
Bank (EX-IM),U.S. Trade and Development Agency (USTDA),Bureau of
Oceans, International Environmental and Scientific Affairs, and
other entities as appropriate to determine how the USG can support
Nigeria's efforts to reduce gas flaring and create sustainable
industrial clusters for electric power generation (reftel B and C).
(Note: According to the World Bank, Nigeria is the second largest
gas-flarer (byproduct of crude oil production) in the world after
Russia, significantly contributing to global warming. The Nigerian
National Petroleum Corporation (NNPC) reports that annually 26% of
gas produced in the country is burned into the atmosphere. In 2008,
an estimated 666 million standard cubic feet of gas was flared. End
Note).


4. (SBU) ACTION REQUEST CONTINUED: In response to Gusau's letter,
Post requests that EEB/ESC coordinate a dialogue with the above and
other appropriate agencies to determine how the USG can provide the
GON technical assistance in setting up one policy and three
independent regulatory bodies, separate from the new "for profit"
National Petroleum Corporation to be established under the PIB. The
GON also needs assistance in negotiating and setting up joint
ventures with the various international oil companies (IOC)
operating in Nigeria. Post requests U.S. technical assistance to
Nigeria in this area as well.


5. (U) Post contact on this issue is Economic Officer Carolyn Jensen
(jensencj@state.gov - 234-9-461-4371).


6. (U) This cable was coordinated with ConGen Lagos.

SANDERS