US embassy cable - 02KUWAIT5415

C O N F I D E N T I A L KUWAIT 005415 
 
SIPDIS 
 
STATE FOR EB/ESC, NEA/ARP, AND NEA/NGA 
USDOC FOR 4520/MAC/AME 
USDOC FOR 3131/USFCS/OIO/ANESA 
USDOE FOR IE - L.COBURN AND C.WASHINGTON 
TREASURY FOR OASIA 
 
E.O. 12958: DECL: 12/16/2012 
TAGS: EPET, ETRD, PREL, KU, SA, QA, IR, ENRG EINV 
SUBJECT: KUWAIT ACTING OIL MINISTER ON PROJECT KUWAIT, 
QATARI GAS 
 
REF: A. KUWAIT 5019 
 
     B. KUWAIT 5296 AND PREVIOUS 
 
Classified By: Ambassador Richard H. Jones for reasons 1.5 (B) and (D) 
 
1.(C) Acting Minister of Oil Sheikh Ahmed Fahed Al-Sabah told 
the Ambassador on December 14 that he and the government 
remain committed to Project Kuwait (reftel A), and said that 
he intends to secure parliamentary approval for the project 
before the current session of Parliament ends, during his 
term as Minister.  When Ambassador noted that U.S. and other 
international oil companies are losing patience, the Minister 
said it was his intention to work simultaneously with oil 
companies and the National Assembly to polish the draft 
agreements while securing passage of authorizing legislation. 
 
2. (C)  The Ambassador also asked about the status of the 
agreement with Qatar for natural gas supplies, and 
specifically the pipeline to transit Saudi and Bahraini 
waters.  The Minister suggested that nothing was happening at 
the moment, and when the Ambassador asked if there was a role 
for the US to play, the Minister said the Saudis have said 
"don't do anything."   The Minister inferred that the SAG 
just wants to let the situation alone for some time to let 
everyone cool off.  He added that it's not just Saudi Arabia; 
Qatar also has its problems with Bahrain (and Kuwait itself) 
over Al-Jazeera. 
 
3. (C) The Minister said that the indefinitely delayed 
delivery of Qatari gas should have no significant impact on 
Kuwait.  The Minister noted that Kuwait intends to proceed 
with the development of the offshore Dorra field, and that 
this coupled with new wells in Rawdatain should provide 
sufficient gas for Kuwait's near-term needs.  When the 
Ambassador asked if Iran was being considered as a source of 
supply, the Minister acknowledged that Kuwait had discussed 
the matter with the Iranians, but quickly noted that they had 
discussed many similar projects in the past.  The Minister 
stated flatly Kuwait had no serious intentions of purchasing 
Iranian gas. 
 
4. (C) Comment:  The Minister's oft repeated message that 
Project Kuwait is 'just around the corner' is received again 
with hope, but not much optimism.  We found his statement 
that he wanted to get it done during his term as Minister 
interesting in that it seems he does not expect to be Oil 
Minister in the next cabinet.  As for his strategy of 
double-tracking talks with oil companies and the National 
Assembly, we've heard this before.  We still have not seen an 
adequate explanation as to why the GOK continues to wait, or 
a commitment to launch this strategy on a date certain and 
see it through to the end.  End comment. 
JONES