OIL CHIEF REQUESTS DIALOGUE ON ENERGY, CLIMATE

UNCLAS SECTION 01 OF 02 ABUJA 000501 STATE FOR SPECIAL ENVOY STERN STATE FOR OES DAS MIOTKE, OES/EGC, OES/ENV, AF/W, AND EB STATE PASS CEQ SUTLEY, USTR AGAMA, USTDA MARIN, AID/AFR/SD DOE AND EPA FOR INTERNATIONAL BAGHDAD FOR DMCCULLOUGH SENSITIVE SIPDIS E.O. 12958: N/A TAGS: EPET SENV PREL ELAB ECON ENRG EFIN PGOV NI SUBJECT: OIL CHIEF REQUESTS DIALOGUE ON ENERGY, CLIMATE REF: ECONCOUNS/EEB/OES/AF TELECONS AND EMAILS SENSITIVE BUT UNCLASSIFIED - HANDLE ACCORDINGLY. ¶1. (U) THIS IS AN ACTION REQUEST. PLEASE SEE PARAGRAPH 7. ¶2. (SBU) SUMMARY: The new Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) is requesting that USG officials visit Abuja in the near future to commence a dialogue on energy and climate policies, including discussing respective approaches in the run-up to the Copenhagen talks in December. GON Petroleum Ministry as well as others would be involved in roundtable to kickoff discussions. This request presents an important opportunity to engage Nigeria's predominant parastatal and the GON on a range of policy issues critical to the development of Nigeria's oil and gas resources and opens the possibility of having the GON as an ally on climate efforts as well, including the challenge of flared gas, the problem of deforestation and sharing of adaptation approaches. END SUMMARY. ¶3. (SBU) New NNPC GMD Mohammed Barkindo, accompanied by several of his senior staff, called on Ambassador at Embassy March 11. EconCouns also attended. This message reports on proposal by Barkindo for a dialogue on energy and climate policies. Septel will report his comments on petroleum sector and related security issues. Petroleum Boss Suggests Energy/Climate Roundtable -------------- - ¶4. (SBU) Barkindo, who has represented Nigeria in climate talks as recently as the December COP 14 meeting in Poznan, and who now has responsibility for the productivity and profitability of Nigeria's key petroleum sector as the recently-appointed head of NNPC, told Ambassador that he was keenly interested in receiving USG officials in near future to initiate a dialogue on energy and climate policies, especially as both are expected to change dramatically under the Obama Administration. ¶5. (SBU) Barkindo proposed a roundtable on energy and climate policies, including likely impact of USG policies for Nigeria and other countries. He sees the roundtable as kicking off an enhanced dialogue between Nigeria and the U.S. on these and related issues, to include ongoing exchange on positions toward upcoming climate talks. He would be pleased to have the roundtable address Nigeria's own oil and gas policies as well and saw the proposed roundtable as including a range of stakeholders: international companies involved in Nigeria's petroleum sector and the ministries of petroleum, finance and planning as well. He recognized that such issues as gas to power and financing arrangements were key challenges for NNPC and Nigeria. (NOTE: In other conversations, Petroleum Minister Lukman has expressed his own interest in close communication and cooperation with the USG on these issues. END NOTE). Barkindo projected the hope that U.S. action on climate change going forward would in some way benefit Nigeria's efforts to reduce and eventually end extensive gas flaring in the Niger Delta. ¶6. (SBU) Ambassador emphasized to Barkindo that the focus of the Obama Administration on renewable energy sources should not be viewed as a zero sum game by oil and gas producing countries such as Nigeria. As a partner and major energy consumer, the U.S. had an interest in Nigeria maintaining its oil and gas production. We also shared the concern about gas flaring and the need to utilize that stranded gas, particularly to generate electricity. And clearly the Obama Administration was interested in doing more on global climate change and engaging with other countries in the run-up to Copenhagen in December. She stressed that the roundtable and dialogue should be driven by clear objectives important to both sides and strive for concrete deliverables. Barkindo agreed, and gave as one illustrative example his interest in making full use of an existing U.S. Trade Development Agency study on LPG. He acknowledged U.S. interest in broader production issues as well, and confirmed his commitment to an open exchange on those. On climate issues, he spoke of the good working relationship he had had with U.S. negotiators and said that Nigeria and other oil and gas producers wanted to ensure open communication with the U.S. on any post-Kyoto ABUJA 00000501 002 OF 002 agreement. Action Request -------------- ¶7. (SBU) The proposal from NNPC GMD Barkindo presents an important opportunity to engage Nigeria's predominant parastatal and the GON on a range of policy issues critical to the development of Nigeria's oil and gas resources. It also opens the possibility of having the GON as an ally on climate efforts, including the challenge of flared gas, the problem of deforestation and sharing of adaptation approaches. The key ministries and other participants, including U.S. oil and gas and services firms, would also participate in the roundtable - providing useful access for our companies. Post understands that Washington officials would want to be closely involved in shaping the agenda and format for the roundtable and dialogue. We are confident that Barkindo and GON counterparts will be flexible and responsive on the particulars. Post requests that Department identify appropriate official(s) who could travel to Abuja at an early date to participate in the above-described roundtable and kick off a new energy and climate dialogue with Nigeria. ¶8. (U) This cable was coordinated with Consulate Lagos. SANDERS