US embassy cable - 05LAGOS346

UNCLAS LAGOS 000346 
 
SIPDIS 
 
USDOC WASHDC 
 
E.O. 12958: N/A 
TAGS: NFATC/ECON 
SUBJECT: NOMINATION FOR JULY 25-29 OIL AND GAS INDUSTRY 
COURSE (PE 127) 
 
 
1.  (U) Post nominates Economic Specialist - Obilade, 
Mayowa Olalonpe, as its candidate for the oil and gas 
industry course scheduled for July 25-29, 2005 in 
Houston.  Ms. Obilade holds a Masters degree in 
Economics and has been the Consulate General's Economic 
Specialist for the past 12 months. 
 
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Justification 
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2. (U) The upstream oil and gas industry is the single 
most important sector in the Nigerian economy with an 
estimated proven oil reserves of 22.5 billion barrels 
and 124 Tcf of proven natural gas reserves. Nigeria is 
the fifth largest supplier of U.S. energy and much of 
our bilateral relationship revolves around the sector. 
U.S. energy majors Chevron Texaco and ExxonMobil are 
primary players in the Nigerian oil and gas sector, 
representing several billion dollars in U.S. 
investments.  Likewise, U.S. oil servicing companies 
Schlumberger, Halliburton and its subsidiary TSKJ are 
dominant players within the sector. 
 
3.  (U)  The  Nigerian oil and gas sector is  currently 
going  through changes with the introduction of  a  new 
local  content policy, new gas policy and  the  gradual 
move   to   deep  offshore  and  ultra  deep   offshore 
exploration.  Drilling results in deepwater  have  been 
encouraging.  The average size of discovery is over 600 
million barrels at an average water depth above 1,000m. 
If  these reserves come on line, Nigeria will add  over 
five  billion  barrels of oil to her national  reserves 
from  deepwater  activities  alone.  Success  rate   of 
deepwater exploration in Nigeria is about 60%,  one  of 
the highest in the world. 
 
 
 
4. (U) The Consulate depends heavily on the FSN 
EconSpec to monitor these developments.  She works 
closely with post's Energy FSO to develop 
recommendations and to mediate differences between the 
host government and U.S. oil companies.  Ms. Obilade 
regularly represents the U.S.G at local seminars and 
workshops addressing key issues in the energy sector, 
such as transparency initiatives and tax policies. 
 
5. (U) The Oil and Gas industry training course will 
deepen her knowledge and understanding of the U.S. oil 
and gas sector. It will enhance her analytical and 
reporting capacity and enable her to better assess the 
impact of industry changes on U.S.G national interests. 
We anticipate that the course will also improve Ms. 
Obilade's technical expertise, allowing her to serve as 
post's institutional knowledge base as FSOs rotate in 
and out of Nigeria.  We are confident that Ms. 
Obilade's participation in the course would benefit 
this mission, our Washington audience, and U.S. 
companies operating in Nigeria. 
 
BROWNE