US embassy cable - 05LAGOS422

UNCLAS SECTION 01 OF 02 LAGOS 000422 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR AF/W 
STATE FOR EB/ESC/IEC/ENR/BLEVINE 
STATE FOR DS/IP/AF 
STATE FOR INR/AA 
STATE PASS DOE FOR DAS JBRODMAN AND CGAY 
STATE PASS TREASURY FOR ASEVERENS AND SRENANDER 
STATE PASS DOC PHUEPER 
STATE PASS TRANSPORTATION MARAD 
STATE PASS USAID FOR GWEYNAND AND SLAWAETZ 
STATE PASS EX-IM FOR JRICHTER 
STATE PASS OPIC FOR CDUFFY 
STATE PASS TDA FOR NCABOT AND BTERNET 
 
E.O. 12958: N/A 
TAGS: EPET, EINV, NI, ENERG 
SUBJECT: GOVERNMENT REQUESTS ASSISTANCE WITH 2005 PETROLEUM 
BID ROUND 
 
 
Summary 
-------- 
 
1.  (U)  This is an action request for the Department of 
Energy and the U.S. Trade and Development Agency: Please see 
paragraphs five and six. 
 
2.   (SBU)  In a series of meetings on March 9 and 10 with a 
visiting Department of Energy official, Presidential Advisor 
for Petroleum and Energy Resources, Dr. Daukuro, and 
Ministry of Petroleum Resources Technical Advisor Tony 
Chukweueke requested assistance from the Department of 
Energy on the 2005 bid round, publicly launched by the 
Ministry of Petroleum Resources (MPR) at a March 11 press 
conference.  The bid round will allow firms to bid for 
licenses to develop the sixty-one remaining blocks in 
Nigeria.  A final conference, where bids will be collected 
and awards announced, is currently planned for late July or 
early August. 
 
3.   (SBU)  Dr. Daukuro stated his concerns that the bidding 
be perceived as open and transparent by potential foreign 
investors, because Nigeria hopes to attract new independent 
energy firms.  Chukweueke noted that Nigeria was "tired of 
being dominated" by the same major firms, and would like to 
bring other, smaller firms to the table.  Dakouro and 
Chukweueke proposed DOE assistance to audit the GON bidding 
process, which they believe would give "international 
assurances" to investors that the process was clean, 
provided the GON passed the audit.  DOE Africa Team Leader 
Gay and Energy Off promised to forward this request for 
assistance to the DOE, but made no further commitments. 
They cautioned Dr. Daukuro and his team that DOE is not in 
the position to give public assurances of the transparency 
and equity of the process, but at best might be able to 
provide informal feedback on the bid process.  Without prior 
notice to us, the MPR, at its March 11 press conference, 
publicly advertised it had given "Invitations to the UK and 
US Departments of Energy to provide international 
assurances." 
 
4.  (SBU)  Ministry of Petroleum Resources (MPR) Technical 
Advisor Tony Chukweueke also requested U.S. Trade and 
Development Agency assistance in organizing and financing a 
one-day business conference with the Association of Blacks 
in Energy, to attract African-American and smaller 
independent firms to participate in the bid round.  He 
proposed this could be an add-on to the 2005 Bid Round 
Investor roadshow, scheduled in Houston on March 28. 
 
5.  (SBU)  Action Request:  For DOE - Not withstanding MPR's 
inelegant advertisement about international assurances, 
there may be a benefit to providing some assistance to help 
improve the bid process. However, any assistance would have 
to be tailored in a manner that does not give the impression 
that we are lending "international assurances," particularly 
given that the bid round is imminent.  Consequently, Mission 
requests DOE advice on assistance DOE could make available 
to the MPR to enhance the transparency of the 2005 bidding 
round.  Mission recognizes the short time frame involved in 
this request, but would appreciate assistance that might 
make the bid round more transparent for the American firms 
that will participate in it.  While mission does not endorse 
MPR's desire for "international assurances, it would be 
helpful if DOE could suggest a list of well-regarded U.S. 
firms in the energy sector that could perform a credible 
audit of the bid process. 
 
6.  (SBU)  Action Request: For TDA - Mr. Chukweueke's 
request for organizing and financing the one-day conference 
with the Association of Blacks in Energy comes with very 
little notice, given that he wants the conference to take 
place around March 28. However, any assistance TDA could 
give at this late juncture may help get more U.S. entrants 
into the bid process - a good thing for the U.S.  Thus 
mission asks TDA to let us know if there is any assistance 
it can give MPR at this time.  We regret the lateness of 
this request from MPR. 
 
BROWNE#