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