

Currently released so far... 6239 / 251,287
Articles
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Amsterdam
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lagos
Mission USNATO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate Shenyang
Consulate Shanghai
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Tijuana
USUN New York
USEU Brussels
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Browse by tag
ASEC
AU
AORC
AF
AM
AFIN
AEMR
AR
ASIG
AMGT
AG
APER
AL
ABLD
ASUP
AA
ASECKFRDCVISKIRFPHUMSMIGEG
AE
AMED
AS
AGMT
APECO
AO
AFFAIRS
AJ
ACOA
AX
AROC
ATFN
ASEAN
AFGHANISTAN
ADCO
AFU
AER
ALOW
AODE
ABUD
ATRN
AID
AC
AVERY
APCS
CASC
CJAN
CVIS
CS
COUNTER
CD
CU
CI
CO
CG
CE
CA
CMGT
CH
CWC
CBW
CKGR
CR
CN
CPAS
CONS
CDG
CLINTON
CT
CJUS
CY
CV
COUNTERTERRORISM
CIA
CACM
CDB
CAN
COE
CM
COUNTRY
CLEARANCE
CACS
CF
CONDOLEEZZA
CARSON
CL
CIS
CODEL
CTM
CB
COM
ECON
EFIN
ETRD
EAIR
EAID
ET
EFIS
ENRG
EPET
ETTC
ER
EG
EINV
EAGR
ELAB
EUN
EWWT
ENGR
EMIN
ECIN
ENIV
ES
EC
ECPS
EIND
EI
EU
ENVI
ETRDEINVECINPGOVCS
ELTN
EZ
EINT
ELN
EUR
EUNCH
EN
EINVECONSENVCSJA
ELECTIONS
EINVEFIN
ENNP
ECUN
EXTERNAL
EK
EFINECONCS
ECINECONCS
ECIP
EINDETRD
EUC
EREL
ENVR
ECA
ENERG
ENGY
ETRO
EFTA
ECONCS
ECONOMICS
ECONEFIN
EINVETC
EINN
ESA
ETC
ETRDEINVTINTCS
ESENV
ETRDECONWTOCS
IR
IZ
IWC
IC
ILC
IO
IAEA
IN
IS
IT
ICRC
INTELSAT
ILO
IBRD
IMF
ICAO
IMO
ITALY
ITALIAN
IRAQI
ITRA
ISRAELI
ICJ
IACI
INTERPOL
ID
IV
ICTY
IQ
IPR
INRB
ITPHUM
IIP
IL
IA
INR
ITPGOV
IZPREL
IRC
INRA
INRO
IRAJ
IEFIN
IF
KE
KCRM
KDRG
KIPR
KCOR
KSCA
KBIO
KDEM
KMCA
KMPI
KNNP
KJUS
KOMC
KGHG
KSUM
KSTC
KIRF
KTIP
KWMN
KZ
KG
KTFN
KHLS
KPAO
KFRD
KTIA
KOLY
KCFE
KISL
KFLU
KPKO
KWBG
KTBT
KTDB
KOCI
KUNR
KAWK
KICC
KPAL
KSTH
KN
KS
KGIC
KNPP
KWAC
KMDR
KAWC
KBCT
KIDE
KFLO
KWMNCS
KSEP
KU
KNEI
KVPR
KACT
KRAD
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KCIP
KSAF
KV
KSPR
KPRP
KFSC
KCRS
KR
KRFD
KX
KO
KPWR
KMIG
KSEC
KIFR
KDEMAF
KFIN
KGCC
KPIN
KHIV
KPLS
KIRC
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KGIT
KBTS
KPRV
KBTR
KERG
KWMM
KRVC
KNSD
KVIR
KNUP
KTER
KDDG
KHSA
KMRS
KHDP
KTLA
KPAK
KNAR
KREL
KPAI
KTEX
KCOM
KNNPMNUC
KPOA
KLIG
KHUM
KDEV
KNUC
KCFC
KREC
KOMS
KWWMN
MASS
MP
MARR
MOPS
MNUC
MX
MO
MCAP
MY
ML
MU
MIL
MC
MTRE
MA
MD
MTCRE
MEPI
MAR
MRCRE
MR
MV
MPOS
MZ
MEPP
MOPPS
MAPP
MASC
MT
MERCOSUR
MK
MDC
MI
MAPS
MCC
MASSMNUC
MQADHAFI
MUCN
MTCR
MG
OVIP
OREP
OTRA
OSCE
OECD
OIIP
OEXC
OPCW
OPIC
OPDC
OPRC
ODIP
OVP
OSCI
OAS
OFDP
OTR
OSAC
OIC
OFFICIALS
OIE
PREL
PGOV
PHUM
PTER
PE
PINR
PINS
PARMS
PARM
PHSA
PA
PK
PBTS
PO
PREF
POL
PLN
POLITICS
PROP
PL
PM
PAO
PSI
PG
PEPR
POV
PALESTINIAN
PINT
PSOE
PU
POLITICAL
PARTIES
PBIO
PECON
PAK
POGOV
PINL
PKFK
PMIL
PY
PFOR
PHALANAGE
PARTY
PRAM
PMAR
PGOVLO
PUNE
PORG
PHUMPREL
PF
POLINT
PHUS
PGOC
PNR
PGGV
PNAT
PGOVE
PRGOV
PRL
PROV
PTERE
PGOF
PHUMBA
PINF
PEL
SNAR
SO
SENV
SU
SCUL
SOCI
SP
SC
SA
SMIG
SAN
SZ
SW
SN
SY
SR
SL
SEVN
SF
SYR
SI
SG
STEINBERG
SIPRS
SH
SNARCS
SOFA
SANC
SHUM
SK
ST
TERRORISM
TRGY
TZ
TX
TBIO
TSPA
TS
TSPL
TW
TU
TD
TIP
TURKEY
TP
TI
TC
TPHY
TH
TO
TK
TNGD
TINT
TRSY
TR
TFIN
TT
UG
UK
UP
UNGA
UNHRC
UZ
UN
UNAUS
USTR
UNSC
US
UNEP
UY
UNESCO
USUN
UNHCR
UAE
UNMIK
USEU
UV
UNO
UNDP
UNCHS
UNVIE
UNCHC
UE
UNDESCO
USAID
UNDC
Browse by classification
Community resources
courage is contagious
Viewing cable 09TRIPOLI517,
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09TRIPOLI517.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09TRIPOLI517 | 2009-07-01 16:04 | 2011-01-31 21:09 | CONFIDENTIAL | Embassy Tripoli |
VZCZCXRO3891
PP RUEHBC RUEHDE RUEHDH RUEHKUK RUEHROV
DE RUEHTRO #0517/01 1821602
ZNY CCCCC ZZH
P 011602Z JUL 09
FM AMEMBASSY TRIPOLI
TO RUEHC/SECSTATE WASHDC PRIORITY 4972
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHOT/AMEMBASSY OTTAWA PRIORITY 0025
RUEHGA/AMCONSUL CALGARY PRIORITY 0005
RUEHTRO/AMEMBASSY TRIPOLI 5507
C O N F I D E N T I A L SECTION 01 OF 02 TRIPOLI 000517
SIPDIS
STATE FOR NEA/MAG; ENERGY FOR GINA ERICKSON; COMMERCE FOR NATE
MASON; PARIS AND LONDON FOR NEA WATCHERS
E.O. 12958: DECL: 6/25/2019
TAGS: EPET EINV LY CA EFIN PGOV ECON
¶1. (C) Summary: Verenex, a Canadian oil firm, continues to experience delays from the Libyan National Oil Company (NOC) on approving the proposed sale of Verenex to China National Petroleum Company International Ltd (CNPCI) in a deal estimated at 400 million U.S. dollars. In the latest round of stalling, the NOC introduced allegations of misconduct during Verenex's initial bid. The head of Verenex believes the Libyan authorities are trying to force down the proposed share price (10 Canadian dollars) in order to buy the company itself. The reasoning behind the NOC's stone-walling remains elusive, but may be related to a number of issues, including: Libyan concerns about the Chinese offer, NOC's interest in accumulating funds for the Compensation Fund agreed to with the U.S., or bureaucratic incompetence. Regardless of the NOC's reasoning (or lack thereof), Verenex's troubles may have broad implications for other foreign firms doing business here, as GOL's actions to stall the sale appear to violate the sanctity of its contract with Verenex. End summary.
¶2. (C) On April 23, Jim McFarland (strictly protect), President of Verenex, a relatively small Canadian oil firm with exploration activities in Libya, provided an update on the proposed sale of Verenex to CNPCI. As reported in Refs A and B, the proposed sale requires the approval of Libya's NOC under the terms of Verenex's Exploration and Production Sharing Agreement (EPSA) with the NOC and contains a clause allowing the NOC to pre-empt any bid that has been offered. McFarland believes that the Libyans are dragging out the approval process in an attempt to drive down Verenex's share-price and pre-empt the CNPCI offer of 10 Canadian dollars per share (a deal that would amount to roughly $400 million USD). He also stated that while the Libyans have political concerns about the Chinese offer, they want to avoid offending the Chinese government.
¶3. (C) The sizable profit that NOC stands to gain in acquiring Verenex could be intended to repay the GOL entity (reportedly NOC) for its contributions to the Libyan terrorism compensation fund agreed to by the U.S. and Libya and completed on October 31, 2008. NOC Ghanem has reportedly been under intense pressure to make up for the Libyan funding that resolved the issue. xxxxxxxxxxxx told Pol/Econ Chief on June 28 that NOC is developing various creative ways to try to collect money from the IOCs for the fund. NOC's acquisition of Verenex's fields would be consistent with that goal. On April 23, McFarland noted that an NOC-owned subsidiary, African Gulf Oil Co. (AGOCO), which previously operated in Verenex's block, may be trying to re-acquire the area.
¶4. (C) McFarland said the consideration of the proposed sale of Verenex has shifted from the NOC to the General People's Committee (GPC), which is led by the Secretary of the GPC (prime minister-equivalent) al-Baghdadi Ali al-Mahmoudi. McFarland commented that the chair of the NOC Shukri Ghanem, had been straightforward with him regarding the deal and wanted to avoid tarnishing the NOC's reputation.
¶5. (C) In addition to regular meetings with al-Baghdadi, Verenex is now meeting with the GPC's legal counsel. The lead attorney is Ahmed Messalati. Verenex's lawyers "did some checking" on Messalati, including asking the State Department about him. It appears he was one of the main negotiators on the 2008 claims compensation agreement between the U.S. and Libya. McFarland said the reports he received about Messalati were positive and that Verenex appreciated knowing that a serious interlocutor would be working on the case. Verenex also expects Messalati to be a shrewd negotiator, who will try to win the best deal for the Government of Libya (GOL).
¶6. (C) McFarland said Verenex had recently received letters from the NOC saying the legal authorities in Libya were investigating allegations that Verenex was improperly pre-qualified to bid in the EPSA IV first bid round in January 2005, under which Verenex acquired its rights to its exploration zones (Area 47) in Libya (see Ref A). xxxxxxxxxxxx He believes the investigation is being carried out by the auditors of the GPC, as part of their review of the Verenex "file." He said they had had plenty of time to investigate the deal, including since last September when the process for selling Verenex began. He noted the first EPSA bidding round did not have clear criteria in the first place; thus, GPC allegations had no real basis. TRIPOLI 00000517 002.2 OF 002
¶7. (C) Verenex is also keeping the Canadian Embassy informed of the progress of their negotiations and the ongoing challenges. The Canadian Ambassador told the Ambassador that he has raised the Verenex issue with high-level officials in Tripoli and has requested a meeting with Muammar al-Qadhafi to discuss Verenex, among other issues. Verenex has also kept the UK Ambassador apprised of the latest developments, given the important role British companies play in the oil and gas sector in Libya.
¶8. (C) Comment: A number of reasons could be driving GOL's blocking of the Verenex sale, including Libyan concerns about the Chinese offer, NOC's interest in accumulating funds for the compensation fund, revenge on the part of Libyan stakeholders whose ox had been gorged by the initial permission for Verenex to operate, or simple bureaucratic incompetence. While it would appear the Verenex saga is not of direct concern to us (although there are a considerable number of American shareholders) given its status as a small Canadian company that perhaps entered the Libyan market to make a quick profit and then exit, the case has broader implications for other foreign firms doing business here. GOL's stone-walling of Verenex's sale to the Chinese, and the last-minute introduction of allegations of misconduct in initial bidding rounds, raise strong concerns about Libya's commitment to the sanctity of contract, a principle that is essential for companies operating in Libya. We intend to raise this troubling aspect of the case in future discussions with GOL officials. End comment. CRETZ