US embassy cable - 05SANAA1360

C O N F I D E N T I A L SANAA 001360 
 
SIPDIS 
 
E.O. 12958: DECL: 05/21/2015 
TAGS: PREL, PGOV, PTER, PHUM, ECON, YM, DOMESTIC POLITICS, ECON/COM, ENERGY 
SUBJECT: SHURA LEADER ON HUNT OIL EXTENSION, AL-HOUTHI AND 
PROPOSED PRESS LAW 
 
REF: A. SANAA 1282 
     B. SANAA 2863 
 
Classified By: Ambassador Thomas Krajeski for reasons 1.4 (b) and (d). 
 
1. (C) Summary: On May 17 Ambassador met with Shura Council 
Chairman Abdul Aziz Abdul Ghani.  Discussions centered on the 
canceled Hunt Oil extension for Block 18, ongoing violence in 
Saada, and the controversial draft press law.  On the Hunt 
extension (ref A), Ghani expressed optimism that a deal could 
still be reached, despite the cabinet's support for 
Parliament's cancellation of the extension agreement.  Ghani 
rebuked al-Houthi (the father) for refusing Saleh's offer of 
a peace agreement, delivered by Shura Council members, 
guaranteeing his safety.  He also said the Council was still 
debating its official position on the draft press law and did 
not want to directly interfere.  End Summary. 
 
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Still Hope for Hunt? 
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2. (C)  Ghani assured Ambassador that Hunt could still strike 
a deal with Parliament to extend its operating license for 
Block 18.  This despite a May 2 letter from the Ministry of 
Oil to Hunt confirming the Cabinet's support for Parliament's 
cancellation of the deal.  Ghani was confident that, "under 
certain conditions," Parliament could still be persuaded to 
reverse its decision, saying he believed that Hunt remains 
the leading candidate and claimed the American company is 
"willing to agree with whatever Parliament says."  (Comment: 
Ghani's rosy outlook on a ROYG-Hunt agreement on Block 18 
contradicts all other evidence, which indicates that Hunt 
faces a difficult road ahead in extending their contract and 
plans to the take the ROYG to the ICC in Paris.  End Comment). 
 
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"Fanatics" Who Refuse to Save Face 
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3. (C) On the ongoing clashes between government forces and 
al-Houthi supporters in Saada, Ghani rebuked the insurgents 
for refusing Saleh's offer of a "face saving" peace.  Calling 
them fanatics, Ghani said the best advice the Shura Council 
could offer to President Saleh would be to "crush the 
insurrection."  Ghani said that once the public received a 
frank accounting of the affair, public support would be 
solidly in favor of Saleh. 
 
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Draft Press Law 
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4. (C) Ambassador praised the ROYG for attempting to redraft 
its press law (ref B) in order to expand journalists' rights 
and freedoms.  Ghani shared that the Shura Council is still 
debating its official position on the new law, but echoed 
Ambassador in his hopes that the ROYG will bring journalists 
into the process before sending the draft to Parliament. 
Krajeski