Search

 

Cablegate: Petro-Canada Signs 30-Year Pact with Libya

TelegramRestricted by caption. UNCLASSIFIED TRIPOLI 00000498
R 241419Z JUN 08
FM AMEMBASSY TRIPOLI
TO RUEHC/SECSTATE WASHDC 3596
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEHRB/AMEMBASSY RABAT 0644
RUEHAS/AMEMBASSY ALGIERS 0697
RUEHTU/AMEMBASSY TUNIS 0530
RUEHEG/AMEMBASSY CAIRO 1129
RUEHVT/AMEMBASSY VALLETTA 0312
RUEHRO/AMEMBASSY ROME 0434
RUEHFR/AMEMBASSY PARIS 0518
RUEHLO/AMEMBASSY LONDON 0840
RUEHOT/AMEMBASSY OTTAWA 0023
RUEHTRO/AMEMBASSY TRIPOLI 4104

UNCLAS TRIPOLI 000498

SENSITIVE

DEPT FOR NEA/MAG; COMMERCE FOR NATE MASON
ENERGY FOR GINA ERICKSON

E.O. 12958: N/A
TAGS: ECON EINV EPET CA LY
SUBJECT: PETRO-CANADA SIGNS 30-YEAR PACT WITH LIBYA

REF: TRIPOLI 474

1. (SBU) Summary: Petro-Canada has signed a series of 30-year contracts with Libya's National Oil Corporation (NOC), bringing its old agreements into line with Libya's preferred EPSA-IV contract standard. The new deals stem from Libya's ongoing efforts to secure tougher terms from foreign oil companies, and mark the growing importance of Libya to Petro-Canada. End Summary. DONE DEAL - AT LAST 2. (SBU) On June 19, representatives from Petro-Canada and the NOC signed a total of six contracts covering all of Petro-Canada's acreage in Libya. The contracts were crafted under the NOC's EPSA IV agreement template, which has become the preferred framework for all international oil companies (IOCs) working in Libya (reftel). An agreement signed by the NOC and Petro-Canada in December 2007 was recently ratified by the General People's Congress, paving the way to sign the actual contracts. 3. (SBU) Under the new deals, Petro-Canada has committed to pay a $1 billion signing bonus and invest $3.5 billion in the redevelopment of several large producing fields, and $460 million in oil and gas exploration. Petro-Canada will pay 50% of all development costs and 100% of all exploration costs. The company had to accept a lower production share (a flat 12% for all six contracts, regardless of location), but hopes to double its current production levels to at least 200,000 barrels of oil per day over the next five to seven years. LIBYA OF GROWING IMPORTANCE TO PETRO-CANADA 4. (SBU) As the latest company to renegotiate its presence in Libya, thereby extending its presence to 2038 (its existing deals were set to expire in 2015), Petro-Canada has now opened up new opportunities in both exploration and redevelopment projects, with a predominant focus in the prolific Sirte basin region. According to local contacts with the company, the renegotiation of the contracts is consistent with Petro-Canada's efforts to re-position itself globally. Petro-Canada had not previously regarded Libya as an area central to its operations, given the company's exposure stemming from its Alberta operations and gas production in Syria. This new deal elevates Libya to a priority area of operations for the company, with prospects for substantial growth. 5. (SBU) Comment: Petro-Canada's re-negotiation is the latest in an emerging trend of contract extensions/renegotiations (reftel). The NOC is waging a concerted campaign to re-negotiate or extend existing contracts under better terms, principally with respect to production share. For their part, international oil companies - mindful of the high price of oil and limited venues for new exploration and production - have so far swallowed hard and signed up. End comment. STEVENS

© Scoop Media

 
 
 
 
 
World Headlines

 

Werewolf: Gordon Campbell On North Korea, Neo-Nazism, And Milo

With a bit of luck the planet won’t be devastated by nuclear war in the next few days. US President Donald Trump will have begun to fixate on some other way to gratify his self-esteem – maybe by invading Venezuela or starting a war with Iran. More>>

Victory Declared: New Stabilisation Funding From NZ As Mosul Is Retaken

New Zealand has congratulated the Iraqi government on the successful liberation of Mosul from ISIS after a long and hard-fought campaign. More>>

Gordon Campbell: On The Current US Moves Against North Korea

If Martians visited early last week, they’d probably be scratching their heads as to why North Korea was being treated as a potential trigger for global conflict... More>>

ALSO:

Gordon Campbell: On The Lessons From Corbyn’s Campaign

Leaving partisan politics aside – and ignoring Jeremy Corbyn’s sensational election campaign for a moment – it has to be said that Britain is now really up shit creek... More>>

ALSO:

Another US Court: Fourth Circuit Rules Muslim Ban Discriminatory

ACLU: Step by step, point by point, the court laid out what has been clear from the start: The president promised to ban Muslims from the United States, and his executive orders are an attempt to do just that. More>>

ALSO:

 
 
 
 
 
 
  • Pacific.Scoop
  • Cafe Pacific
  • PMC