US embassy cable - 03ABUJA1138

C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 001138 
 
SIPDIS 
 
 
NOFORN 
 
 
E.O. 12958: DECL: 07/01/2013 
TAGS: EPET, PREL, PGOV, PINS, NI 
SUBJECT: NIGERIA:  OIL COMPANIES COURT DELTA MILITANTS 
 
 
Classified by Ambassador Howard F. Jeter; reasons 1.5 (b) and 
(d). 
 
 
1.(C/NF) SUMMARY:  With no discernible progress in the three 
month-old Warri crisis, ChevronTexaco (CTX) appears to be 
talking to the armed Ijaw militants who killed scores of 
people when they attacked and razed over 40 Itsekiri villages 
and several oil installations.  According to sources, CTX 
appears to be seeking a modus vivendi with the militants. 
While it may provide a short-term remedy allowing CTX to up 
production, any compromise with the Ijaw militants will only 
enhance their power and status and will whet their appetite 
for more money and control of the local area.  END SUMMARY 
 
 
2.(C/NF) In a June 24 meeting with Embassy ECON and Political 
Officers, Ijaw leader Chief Edwin K. Clark stated  that 
ChevronTexaco Manager for Community Relations Awotorafa 
visited him in Port Harcourt.  According to Clark, Awotorafa 
had earlier shown up in Warri (near Clark's home in Uwhelli, 
Delta State) seeking an urgent meeting with the Ijaw leader. 
Awotorafa, an ethnic Ijaw, explained that he sought Clark's 
help in brokering a meeting with the Federated Niger Delta 
Ijaw Communities (FNDIC), the militant Ijaw youth 
organization in the Warri area.  Clark and Awotorafa 
reportedly agreed on a meeting at Clark's residence for June 
19. 
 
 
3.(C/NF) On June 18, however, the Chevron manager contacted 
Clark to postpone the meeting until July 10.  Clark recounted 
that the FNDIC officials had already begun arriving at his 
residence from their remote bases in the creeks of Warri, and 
this last-minute postponement caused great consternation. 
 
 
4.(C/NF)  According to Clark, Awotorafa stated that Chevron 
is anxious to resume production at the wells and flow 
stations of the Warri area and wants to negotiate terms for 
resumption of operations with the FNDIC militants.  The 
Chevron representative reportedly asked Clark to identify 
what the armed youth group wanted in return for Chevron's 
safe resumption of production. 
 
 
5.(C/NF) Embassy's Corporate Responsibility Officer (CRO) 
asked Clark if these prospective negotiations would lead to a 
request that Chevron pay the FNDIC militants money.  Clark 
avowed that he would not solicit a payoff but emphasized that 
his role would be solely that of facilitator; he would excuse 
himself from the direct negotiations and, therefore, would 
not be involved in the terms of an agreement. 
 
 
6. In a June 25 meeting with EMBOFFs, FNDIC Advisor Daniel 
Ekpedibe confirmed Chevron overtures to his group.  He added 
that the FNDIC welcomes direct talks with Chevron, which it 
views as decidedly anti-Ijaw in the past.  While also denying 
that the FNDIC seeks a cash payoff from Chevron, Ekpedibe 
stated that Chevron would have to agree to "concessions" to 
the Ijaw, including a redistribution of benefits to the 
various local ethnic communities (e.g. jobs, scholarships and 
community development projects) that would be more favorable 
to the Ijaw of Warri. 
7.(C/NF) Both Clark and Ekpedibe separately confirmed that 
Clark had brokered a meeting between FNDIC leaders and 
representatives of the Nigerian National Petroleum 
Corporation (NNPC) earlier in the month.  NNPC requested the 
meeting to negotiate an agreement allowing a NNPC 
sub-contractor access to repair an oil pipeline in the 
Escravos area of Warri.  The pipeline goes to a refinery in 
Kaduna.  (Comment:  Bombings, which occurred a month after 
the outbreak of hostilities in Warri, ruptured the pipeline 
in seven areas and effectively shut down one of Nigeria's 
only two operational refineries. The attacks were presumably 
the work of the FNDIC. End Comment)  Clark and Ekpedibe claim 
that a deal was reached, which tracks with press reports that 
NNPC has been granted access to repair  the damaged pipeline. 
  NNPC and its sub-contractor can work securely -- protected 
by FNDIC -- and the repaired pipeline will be protected from 
further sabotage. 
 
 
8.(C/NF) According to several outside sources, including CTX 
officials and NGOs in the Delta, NNPC paid approximately 7 
million naira ($55,000) to the militants for permission to 
repair the pipeline.  This is a source of irony.  The Ijaw 
militants are a challenge to government authority, yet NNPC 
-- a government entity -- actually paid the militants who in 
turn will become a stiffer challenge to the GON's writ in the 
Warri area. 
 
 
9.(C/NF) Comment:  Chevron is no doubt feeling intense 
economic pressure to bring wells back on-line.  Its 
management may have reluctantly decided to follow NNPC's lead 
and negotiate with the armed militants.  For now, the Federal 
Government appears unwilling to reassert its authority around 
Warri.  FNDIC controls the area's waterways and, at the 
moment, is the guarantor of security or the purveyor of 
violence in the area.  Right now it is the ultimate authority 
and companies wanting to operate in the area have to consult 
its leaders. 
 
 
10.(C/NF)  Comment Cont'd: ChevronTexaco is not likely to 
publicize its approach to FNDIC.  CTX's last minute 
postponement of discussions with FNDIC --after its initial 
request -- may indicate the company has reservations and 
would like an alternative to dealing with the insurgents. 
Although the militants do not admit that a payoff is sought 
from CTX, this is most certainly their objective.  While this 
stop gap may allow the company to resume operations, any 
payment will promote FNDIC's prowess, allowing it to become 
stronger and more entrenched, presenting an even greater 
danger to major U.S. and other oil interests in the Niger 
Delta. 
JETER