Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 07COLOMBO632, SRI LANKA: OIL EXPLORATION PROSPECTS REAL, BUT CONSTRAINED

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.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

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. #07COLOMBO632.
Reference ID Created Released Classification Origin
07COLOMBO632 2007-04-27 12:29 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Colombo
VZCZCXRO9379
PP RUEHDE RUEHLMC
DE RUEHLM #0632/01 1171229
ZNR UUUUU ZZH
P 271229Z APR 07
FM AMEMBASSY COLOMBO
TO RUEHC/SECSTATE WASHDC PRIORITY 5947
INFO RUCPDOC/USDOC WASHDC
RUEHNE/AMEMBASSY NEW DELHI 0911
RUEHKA/AMEMBASSY DHAKA 0065
RUEHIL/AMEMBASSY ISLAMABAD 7046
RUEHKT/AMEMBASSY KATHMANDU 5131
RUEHLO/AMEMBASSY LONDON 3707
RUEHGP/AMEMBASSY SINGAPORE 5686
RUEHAD/AMEMBASSY ABU DHABI 0438
RUEHDE/AMCONSUL DUBAI 0115
RUEHKP/AMCONSUL KARACHI 2186
RUEHCG/AMCONSUL CHENNAI 7631
RUEATRS/DEPT OF TREASURY WASHDC
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION
UNCLAS SECTION 01 OF 03 COLOMBO 000632 
 
SIPDIS 
 
SENSITIVE, SIPDIS 
STATE FOR SCA/INS 
MCC FOR S GROFF, D NASSIRY AND E BURKE 
 
E.O 12958: N/A 
TAGS: ECON EAID ENRG EPET ETRD CE
SUBJECT:  SRI LANKA: OIL EXPLORATION PROSPECTS REAL, BUT CONSTRAINED 
BY UNREALISTIC GOVERNMENT EXPECTATIONS 
 
REF:  A) 2006 COLOMBO 431  B) 2006 COLOMBO 1902 
C) COLOMBO 200  D) COLOMBO 418 
 
1.  (SBU) Summary: U.S. experts who have looked at recent geological 
survey data believe that significant petrochemical deposits lie off 
the coast of Sri Lanka.  On May 1, the Ambassador will join Sri 
Lanka's Petroleum minister and others at the Offshore Technology 
Conference in Houston to describe this potential investment 
opportunity for U.S. oil companies.  At that conference, Sri Lanka 
will announce plans to solicit international bids on three of its 
eight offshore exploration blocks between May and October this year. 
 
 
2.  (SBU) Summary cont'd: The U.S. Trade and Development Agency is 
assisting Sri Lanka's inexperienced Petroleum and Resources 
Development Secretariat in preparing a regulatory structure to 
govern the oil exploration process.  However, Sri Lanka turned down 
the USG's offer to help it develop a marketing plan and a model 
production sharing contract for the upcoming licensing round.  It 
did so in haste to get on with the licensing round -- a sign that 
political expediency is likely to outweigh good judgment in this 
critical national development opportunity.  Similarly, Sri Lanka's 
early decision to reserve an exploration block each for China and 
India is troubling both as a reflection of how much sway those big 
neighbors hold with Sri Lanka and as an indication of how Sri Lanka 
continues to manage major national economic policies in a 
non-transparent and non-market fashion.  End summary. 
 
EIGHT BLOCKS: THREE TO BE AUCTIONED NOW, 
THREE LATER, TWO RESERVED FOR CHINA AND INDIA 
--------------------------------------------- 
 
3.  (SBU) According to USG and other experts, seismic surveys 
indicate the potential for significant oil and gas deposits in the 
Mannar Basin off Sri Lanka's northern and western coasts.  Sri 
Lanka's Ministry of Petroleum and Petroleum Resources Development 
has identified eight blocks for exploitation.  According to the 
Petroleum and Resources Development Secretariat, Sri Lanka will 
promote and auction three of those blocks with a May-October 2007 
licensing round; it plans to award exploration licenses in early 
2008; exploration could begin in 2009; production could be possible 
by 2012.  Sri Lanka has reserved two other blocks for China and 
India.  It will keep the final three blocks aside for a future 
bidding round.  The eight blocks comprise both shallow and deeper 
waters; the easiest to explore blocks will be auctioned first. 
According to one U.S. expert, the Mannar Basin could contain among 
the best oil and gas reserves in South Asia.  High world oil prices, 
if sustained, make it more likely that Sri Lanka's reserves will be 
viable to develop. 
 
4.  (SBU) Petroleum Minister A.H.M. Fowzie will announce the opening 
of the initial bidding round at the April 30-May 3 Offshore 
Technology Conference in Houston.  The conference will feature a May 
1 industry breakfast focused on Sri Lanka, organized by the U.S. 
Department of Commerce.  Ambassador Blake will participate, to 
describe U.S.-Sri Lanka relations and the investment climate in Sri 
Lanka.  Petroleum and Resources Development Secretariat Director 
General Neil De Silva will give a technical overview of the offshore 
oil potential in the Mannar Basin.  The managing director of 
Chevron's Caltex Sri Lanka operation will describe the private 
sector perspective on investing in Sri Lanka. 
 
PROMISE OF TWO BLOCKS TO INDIA 
AND CHINA WITHOUT CLEAR TERMS 
------------------------------ 
 
5.  (SBU) Sri Lanka decided long before readying the upcoming 
licensing round to allot an exploration block each to India (in 
2003) and to China (in 2006).  The GSL has told emboffs that it 
reserved the blocks for India and China because it views the two 
countries as "strategic partners."  Some GSL officials have told us 
that they likewise regard the United States as a strategic partner 
and that it should get a block too.  In response, we have emphasized 
that we believe a competitive and transparent process would be best 
for Sri Lanka and for the private companies that would bid on the 
blocks, and that we are confident that U.S. companies could deliver 
the best expertise and value. 
 
COLOMBO 00000632  002 OF 003 
 
 
 
6.  (SBU) The GSL has not disclosed which blocks will go to India 
and China, but has begun discussing possible terms for the eventual 
award of blocks to Chinese and Indian firms.  On February 7, 
Minister Fowzie told the press that Sri Lanka hoped to receive $100 
million each from China and India for the blocks.  He recently told 
Econoff that China had not yet replied to this proposal and that 
discussions were underway with India.  Post, on the advice of 
USTDA's consultant, has recommended that Sri Lanka attempt to use as 
a basis for these deals the same production sharing agreement that 
would govern the competitively auctioned blocks.  This would avoid 
the distortive impact of having companies potentially bringing oil 
up from different blocks under different financial terms. 
 
FINAL THREE BLOCKS HELD IN RESERVE 
---------------------------------- 
 
7.  (SBU) The final three blocks identified for future development 
will be held in reserve, pending the outcome of the initial 
licensing round.  Director General De Silva believes the GSL will 
learn from the initial licensing round, and will be able apply those 
lessons in a later bidding round.  Further, he notes that 
technological advances might improve the viability of exploring the 
more difficult fields.  (Comment:  This is one of Sri Lanka's most 
prudent decisions involving offshore development so far.) 
 
MARKETING AND BIDDING ROUND PLANS 
--------------------------------- 
 
8.  (SBU) The GSL will announce which blocks will be available in 
the initial licensing round on May 1 at the Offshore Technology 
Conference.  The Secretariat is currently evaluating several 
proposals by consultants to assist in preparing for and marketing 
the bidding round.  These services will consist of preparing the 
production sharing contract, conducting a road show, and writing 
software to evaluate exploration bids.  Dr. De Silva anticipates the 
road show taking place in July and August in the United States, 
London, Dubai and Singapore, leading to the blocks being auctioned 
off by October, or no later than early 2008. 
 
UNREALISTIC EXPECTATIONS FOR GSL-CONTRACTED CONSULTANT 
--------------------------------------------- --------- 
 
9.  (SBU) In 2006, USTDA offered to fund a consultant to develop a 
production sharing contract and develop and implement marketing 
plans.  It funded a definitional mission for this work.  The 
Petroleum Resources and Development Secretariat used many of the 
suggestions provided at that time to develop its plans.  The 
proposed USTDA grant would have improved the likelihood that Sri 
Lanka received high quality, comprehensive services, and increased 
the potential for a transparent bidding process for the fields.  But 
the Secretariat declined this offer, citing the need to minimize 
preparatory time for these consultancy services (Ref B).  The 
Secretariat on February 15 published a small ad in a local paper to 
 
SIPDIS 
request proposals for these services, which Embassy reported (Ref 
D).  That RFP allowed only five weeks for submission of proposals, 
which limited both the time for word to spread about the RFP and the 
time companies would have to prepare bids.  One U.S. company 
official told Econoff that the fees the GSL expected to pay were 
insufficient to provide the entire set of services requested. 
 
USTDA CONSULTANT TO DRAFT PROPOSED 
REGULATORY SYSTEM FRAMEWORK 
-------------------------------- 
 
10.  (U) The GSL gladly accepted a related USTDA offer to grant 
$474,000 to develop a regulatory structure to govern the oil 
development process, including designing of a regulatory authority 
(Ref C).  This assistance will facilitate development of a 
productive Secretariat while outlining world-class legal, 
operational, environmental, and safety standards offshore. 
Ambassador Blake and Secretary of the Treasury Jayasundera signed 
the grant agreement on March 14.  Several dailies reported the 
signing on their front page, or on the first page of their business 
section.  In keeping with USTDA requirements, this technical 
assistance project will be carried out by a U.S. company.  USTDA's 
request for bids opened on March 30 and will close on May 15. 
 
COLOMBO 00000632  003 OF 003 
 
 
 
U.S. MINERALS MANAGEMENT SERVICE CONDUCTS 
RESOURCES MANAGEMENT SEMINAR 
----------------------------------------- 
 
11.  (SBU) Additional U.S. assistance was provided by the Minerals 
Management Service, which held a three-day training course on 
"managing oil and gas resources" in Colombo in December 2006. 
Facilitated by USAID, the workshop covered oil and gas management 
systems, leasing and tendering methodologies, risk management, 
resource evaluation and inspection.  The session concluded with a 
simulated lease sale.  Petroleum and Resources Development 
Secretariat staff, as well as a core group of officials from various 
 
SIPDIS 
line agencies who are expected to work together on oil exploration 
related work, attended the course.  The workshop provided critical 
first-time exposure to offshore development issues for most of the 
attendees, who lacked any prior knowledge or experience in resource 
management. 
 
12. (SBU) Bio note: Dr. De Silva is the only real oil development 
expert within the Ministry of Petroleum Resources Development.  He 
is a Canadian Sri Lankan dual citizen with M.Sc. and Ph.D. degrees, 
a diploma in business administration.  For over two decades, Dr. De 
Silva has served as a petroleum geologist, petroleum geophysicist 
and exploration manager, mainly in Newfoundland.  He is a consultant 
to the Integrated Ocean Drilling Program at Texas A&M University. 
He returned to Sri Lanka at the government's request to lend 
expertise to this critical national opportunity.) 
 
COMMENT: FUMBLING A MAJOR OPPORTUNITY 
------------------------------------ 
 
13. (SBU) Despite our attempts to assist, and Dr. De Silva's 
professionalism, we fear that Sri Lanka is fumbling this critical 
opportunity to develop a valuable national resource.  While Minister 
Fowzie no longer blithely tells the press that oil derricks will 
gush oil within eight months (as he did frequently last year), Sri 
Lanka still appears unwilling to spend the  time and resources to 
get the offshore oil development process right the first time.  If 
so, it will never get as good a chance to convince the international 
oil companies that it can be a professional partner in a long-term 
and mutually profitable process.  Still, Post continues to press for 
appropriate planning, development and marketing of these fields, to 
ensure that the bidding cycle as is competitive and transparent as 
possible. 
BLAKE