NORWEGIAN FM VISITS BAGHDAD, PLEDGES TO ESTABLISH

C O N F I D E N T I A L BAGHDAD 001773

SIPDIS

E.O. 12958: DECL: 06/30/2019
TAGS: PREL EPET ENRG IZ NO
SUBJECT: NORWEGIAN FM VISITS BAGHDAD, PLEDGES TO ESTABLISH
EMBASSY

REF: A. BAGHDAD 1648

B. BAGHDAD 1447

C. OSLO 171

D. OSLO 383

Classified By: Acting Political Counselor Peter H. Vrooman for reason 1
.4 (d).


1. (C) SUMMARY: During his first visit to Baghdad on June
29, Norwegian Foreign Minister Jonas Gahr Stoere announced
that Norway will establish an Embassy here and discussed
expanding Norwegian cooperation with Iraq after four years of
minimal diplomatic contact. He also advocated for Norwegian
oil company StatoilHydro,s bid in Iraq,s oil licensing
rounds that were scheduled to begin the same day (see reftel
A). The visit follows a May 15 agreement between the two
countries on the return of Iraqi nationals residing in Norway
who do not qualify for asylum, and is another sign of
Norway,s increased engagement with Iraq. END SUMMARY


2. (C) In his meeting with Foreign Minister Hoshyar Zebari,
Stoere discussed expanding Norwegian cooperation with Iraq in
energy and culture, highlighting that both countries are
energy exporters. In a press conference with Zebari, Stoere
publicly announced that Norway will establish a formal
presence at the Swedish Embassy in Baghdad, with Norwegian
diplomats reporting to the Norwegian Embassy in Amman. A
permanent mission will follow, he said, but did not indicate
a timeline. At the press conference, Stoere also made a
pitch for StatoilHydro, saying that the company is "a very
qualified Norwegian candidate among those who present
themselves to the Ministry of Oil" this week. (NOTE: The
next day, StatoilHydro bid in a consortium with Spain,s
Repsol and Denmark,s Maersk. The consortium,s bid was the
lowest scoring bid; it was not offered a chance to match the
Ministry of Oil,s maximum renumeration fee and did not win.
END NOTE)


3. (C) While in Baghdad, Stoere also met with Minister of
Human Rights Wijdan Salim and representatives from the Iraqi
Red Crescent. Embassy Baghdad, at the request of the GON,
provided security support during the visit.


4. (C) COMMENT: Minister Stoere,s visit follows a direct
request from Secretary Clinton during their bilateral meeting
in April. The GON decided in March to normalize relations by
establishing a diplomatic presence in Baghdad and possibly in
northern Iraq (see reftels B and C). Norway is the world,s
third largest exporter of oil and natural gas and has
significant business interests in Iraq,s oil sector,
including StatoilHydro,s participation in the oil bidding
rounds as well as Norwegian energy company DNO
International,s involvement in the development of oil fields
in the Kurdistan Region (see reftel D). DNO began exporting
from the Tawke field in June, but tensions between the
Kurdistan Regional Government (KRG) and the GOI over the
validity of oil contracts signed by the KRG could jeopardize
payment to DNO.
HILL