US embassy cable - 05LAGOS1163

C O N F I D E N T I A L SECTION 01 OF 02 LAGOS 001163 
 
SIPDIS 
 
STATE PASS DOE FOR DAS JBRODMAN AND CGAY 
STATE PASS TREASURY FOR ASEVERENS AND SRENENDER 
STATE PASS DOC FOR PHUPER 
STATE PASS TRANSPORTATION FOR MARAD 
STATE PASS OPIC FOR CDUFFY 
STATE PASS TDA FOR BTERNET 
STATE PASS EXIM FOR JRICHTER 
STATE PASS USTR FOR ASST USTR SLISER 
STATE PASS USAID FOR GWEYNAND AND SLAWAETZ 
 
E.O. 12958: DECL: 12/08/2014 
TAGS: EPET, EINV, CASC, PGOV, ASEC, MOPS, NI 
SUBJECT: CHEVRON'S SECURITY STRATEGY IN DELTA STATE 
 
REF: LAGOS 433 
 
Classified By: Acting Consul General William M. Howe for Reasons 1.4 (B 
 & D) 
 
1.    (U)  Summary.  Months after successfully containing an 
invasion of its facilities in Escravos, Delta State,  Chevron 
Texaco (CT) characterized the relative quiet in the Niger 
Delta region as "the calm before the storm." CT has 
registered some small successes in the region, including 
involving the Delta State government in negotiations with the 
ethnic councils and capacity building projects (see reftel). 
The company also believes that significant federal government 
involvement is on the horizon; however, the uncertain 
political future of the Delta State governor, troubles 
incorporating the Itsekiri community into the ethnic 
councils, and continued illegal arms sales and money 
laundering assistance from abroad continue to impede progress 
and cause anxiety. End Summary. 
 
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POLITICS IN THE DELTA 
--------------------- 
 
2.  (C) CT chose Delta State as their first target in 
building ethnic councils and collaborating more closely with 
state governments.  Under the ethnic council model, each 
major ethnic group in a state elects council representatives 
to negotiate collectively with CT (reftel).   Hamish 
Macdonald, a Chevron consultant from the British firm 
MarsOmega, characterized Delta as a "pariah" state, and he 
reported recently asking Delta State governor, Chief James 
Ibori, "Who in their right mind would invest in Delta State?" 
 The governor, in turn, admitted that security risks made 
Delta an utterly unappealing investment prospect and promised 
to play a more significant role in company negotiations with 
ethnic communities. 
 
3.  (C) Ibori's political future, however, is far from 
certain.  Now completing his second term, the governor has 
been talked about as a potential Vice-President running mate; 
however, other sources report that he is seriously 
considering leaving politics for a post-grad fellowship at 
Princeton University.  The short window between now and 
election preparations leaves only about six to nine months 
for Ibori's current involvement to take root, and CT is 
unsure about what will follow. 
 
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COMPANY-COMMUNITY-GOVERNMENT: A NEW PARTNERSHIP 
--------------------------------------------- -- 
 
4.  (C) Eight weeks after the Escravos invasion in February, 
Delta State sent the state Secretary and the Commissioner for 
Conflict Resolution to meetings between CT and community 
leaders. A manual for continued state government involvement 
has been produced, and CT is certain that state backing is 
the key to making the ethnic council strategy succeed where 
the "host community" plan has failed (reftel).  While the 
Ijaw community has responded to the strategy, Itsekiri groups 
are still recalcitrant. The Secretary of Delta State, 
however, belongs to the Itsekiri community, and CT views his 
involvement in recent talks as a boon for future cooperation 
across ethnic lines. 
 
5. (C) MacDonald reported that the pillaging of pipelines for 
parts poses a bigger problem for CT than oil bunkering in the 
Escravos area. 
 
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NATIONAL GOVERNMENT INVOLVEMENT 
------------------------------- 
 
6.  (C) In February, CT executives spoke with Edmund Dakouru, 
now Petroleum Minister, and were encouraged by his vision for 
national government participation in negotiations for 
regional security and harmony. Dakouro promised to provide 
for an improved Niger Delta Development Commission (NDDC), 
and he publicly acknowledged that, for their own well-being, 
local communities must ensure that oil services experts be 
able to operate safely and uninterruptedly. 
 
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LINGERING WORRIES, FUTURE EXPANSION 
----------------------------------- 
 
7. (C) Despite successes with government involvement and 
capacity building programs, CT is still worried by the 
overall security climate.  Recent events, such as the 
prison-break of a key commander of the Niger Delta People's 
Vigilante Force (NDPV) do not bode well (reftel). Hamish also 
cited concerns about the steady stream of arms and laundered 
money, which he said pours in from places like South Africa 
and the Ukraine.  Nevertheless, Chevron is still plowing 
ahead with plans to restore full production at their Escravos 
facility, which would eventually represent an additional 
150,000 barrels per day. 
HOWE