US embassy cable - 05TEGUCIGALPA893

UNCLAS TEGUCIGALPA 000893 
 
SIPDIS 
 
STATE FOR WHA/CEN, WHA/MEX, WHA/PPC, AND WHA/USOAS 
STATE FOR L, OES, INL/LP, AND EB/ESC 
 
E.O. 12958: N/A 
TAGS: PBTS, PREL, PGOV, ECON, EPET, EWWT, SENV, SNAR, MX, HO 
SUBJECT:  SEAS WITHOUT FRONTIERS; OIL DRILLING WITHOUT FEARS: 
HONDURAS-MEXICO SIGN MARITIME TREATY 
 
1. On April 18th, Mexico and Honduras signed a maritime 
delimitation treaty for waters in the Caribbean.  Both 
countries agreed to share all information that will assist in 
finding petroleum deposits and to formalize an agreement for 
an efficient and equitable exploitation of such deposits. 
Foreign Minister of Mexico, Luis Ernesto Derbez, said: "This 
treaty shows other nations that it is possible to resolve 
conflicts in a peaceful manner and at the same time respect 
international law." He also stated that this accord would 
improve the two countries' ability to combat new threats 
within the region, such as drug trafficking and terrorism. 
 
2. This treaty signing came at a time of strong Honduran 
support of FM Derbez's bid for the OAS Secretary General 
position. 
 
3. The treaty, under negotiation since 2003, defines the 
maritime limits and the exclusive economic zone of both 
countries, based on the UN Convention of the Law of the Sea. 
It sets up a commission that will handle mutual cooperation 
plans in the areas of common interest.  The agreement 
promises cooperation to protect and preserve the marine 
environment, navigation security, search and rescue, and 
scientific research.  If petroleum deposits were one day 
found in the area, both countries would develop the fields to 
scientific and industry standards and then share the profits 
and production. 
 
4. The signing of this treaty opens doors for Honduras to 
complete several other pending maritime treaties with 
Guatemala, Belize, Jamaica, Nicaragua, and Cuba.  Honduras 
has already signed maritime border treaties with the UK, in 
regards to the area near the Grand Caimans, and with 
Colombia. It currently has a maritime dispute in The Hague 
with Nicaragua over whether their maritime borders delineate 
on the 15th or 17th parallels. Its maritime negotiations with 
Cuba seem to hinge on Honduras' vote on the UNCHR Cuban Human 
Rights issue; however, MFA officials said that the maritime 
agreement with Mexico, which adjoins the Honduran-Cuban 
maritime frontier, could facilitate the conclusion of a 
Honduras-Cuba agreement. 
 
5. Post has not reviewed the text of this treaty, but from 
published descriptions it appears that the treaty includes 
provisions for "unitization" of any maritime oil fields. 
Such provisions are increasingly common in the oil sector, 
and stem from a recognition that oil fields frequently cross 
maritime borders, but competitive exploitation of the field 
on both sides of the border can actually damage the field and 
reduce production.  It, therefore, makes more sense to 
develop the field according to responsible scientific and 
industry standards, with an agreement in place to then share 
the production or the profits. 
 
6. Comment:  To our knowledge, the area in question is not 
one currently being explored or developed for petroleum 
production.  Moreover, of the 32 exploration wells reportedly 
drilled in Honduras since 1920, only one showed signs of 
hydrocarbons, and that reportedly was not in commercial 
quantities.  Recent speculation in the Honduran press aside, 
Post sees no indication of significant oil sector interest in 
Honduras as a potential frontier oil province.  End comment. 
 
Pierce