US embassy cable - 04ANKARA1542

C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 001542 
 
SIPDIS 
 
 
STATE FOR EB/CBED AND EUR/SE 
 
 
E.O. 12958: DECL: 03/15/2014 
TAGS: EPET, EWWT, PREL, SENV, TU 
SUBJECT: TURKISH MFA REQUESTS USG REACTION TO IDEA OF 
VOLUNTARY PRINCIPALS ON OIL TANKER TRANSIT THROUGH STRAITS 
 
 
REF: ANKARA 1061 
 
 
(U) Classified by DCM Robert Deutsch.  Reasons:  1.4 (b and 
d). 
 
 
1.  (U) This is an action request -- see para 8. 
 
 
2.  (C) Summary:  MFA Director General for Energy Hakki Akil 
asked March 12 for an initial USG reaction to the Ministry's 
initiative (reftel) to obtain agreement on voluntary 
principles committing oil companies to reduce the flow of oil 
through the Turkish straits.  Akil provided a copy of a draft 
voluntary principles paper, which he said he had drafted with 
the assistance of BP.  The MFA's goal is to sign the 
agreement at the Istanbul Summit in late June.  As an 
intermediate step, the GOT plans to meet with major oil 
companies in April to discuss the best way to approach the 
Russians.  Prior to that meeting, the Ministry would welcome 
the USG's initial reaction to the idea as well as any 
specific comments suggestions on the draft paper and/or on 
how best to approach the Russians.  End Summary 
 
 
3.  (C) MFA Director General for Energy Hakki Akil called in 
EconCouns March 12 to follow up on his earlier discussion 
(reftel) about a GOT initiative to reduce, voluntarily, the 
flow of oil through the Turkish straits. Akil said the 
initiative reflected growing Turkish concern about the 
environmental, safety, and health risks associated with the 
rising volume of oil being transported through the straits. 
The amount had increased from 60 million tons in 1996 to 
134.6 million tons in 2003.  In the MFA's view, an accident 
involving one of the tankers is all but inevitable, and the 
result would be disastrous both for Istanbul and for energy 
markets. 
 
 
4.  (C) Akil argued that the major oil companies realize that 
pushing ever-increasing numbers of oil tankers through the 
straits is not a viable option, and that the solution lies in 
greater use of routes that bypass the straits.  However, the 
companies are reluctant to invest in alternative routes -- 
adding to their costs -- for fear that they would in effect 
subsidize competitors by alleviating tanker traffic in the 
straits (i.e., the "free rider" problem). 
 
 
5.  (C) To get around this problem, the MFA wants to bring 
relevant parties together around a set of "voluntary 
principles" for using bypass routes.  Akil stressed that this 
initiative is not designed to impose any restrictions on 
transit through the straits, nor is it meant to press for a 
specific bypass route.  Rather, it is meant to lay the 
groundwork for commercial decisions by the oil companies. 
 
 
6.  (C) Akil provided us with a copy of a draft set of 
voluntary principles (which we are faxing to EB/CBED), which 
he drafted with the assistance of BP.  The draft lays out the 
problems associated with increased use of the straits, and 
commits the companies to: 
 
 
-- work together to quantify the cost of incremental shipping 
delays to oil producers and to refiners who are forced to buy 
alternative crude oil as a result of such delays and lost 
production; 
 
 
-- give priority to maximizing the use of existing bypass 
routes; 
 
 
-- facilitate and support the development of new bypass 
routes; 
 
 
-- use all available capacity in bypass routes prior to 
shipping crude through the straits. 
 
 
7.  (C) Akil said he had discussed this initiative with BP, 
Chevron-Texaco, Shell, and others, who ranged from 
enthusiastic to mildly supportive.  He has not yet raised 
this with Russian companies or with other governments (though 
he plans to raise with the UK shortly).  The MFA plans to 
chair a meeting of the major oil companies in April to talk 
about next steps, specifically how best to approach and win 
the support of the Russian oil companies.  Prior to that 
meeting, he would welcome any initial USG comments or 
suggestions on the proposal as well as on the specifics of 
the draft text.  Akil added that the Ministry's goal is to 
organize the signing of the voluntary principles at the 
end-June NATO Summit in Istanbul. 
 
 
8.  (C) Comment and action request: The MFA is right that 
there is a need to find alternatives to ever-increasing flows 
of oil tankers via the straits, so we believe this initiative 
warrants serious attention and review.  Embassy would 
appreciate Washington's initial reaction to the idea, as well 
as any specific comments or suggestions we could pass to the 
Foreign Ministry. 
 
 
EDELMAN