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 07MANAGUA2116, NICARAGUA: GOVERNMENT RETURNS EXXON FUEL DEPOT

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. #07MANAGUA2116.
Reference ID Created Released Classification Origin
07MANAGUA2116 2007-09-14 01:14 2011-06-01 08:00 CONFIDENTIAL Embassy Managua
Appears in these articles:
http://www.nacion.com/2011-05-30/Mundo/NotasSecundarias/Mundo2758456.aspx
http://www.nacion.com/2011-05-30/Mundo/NotasSecundarias/Mundo2758467.aspx
http://www.nacion.com/2011-05-30/Mundo/NotasSecundarias/Mundo2758468.aspx
http://www.nacion.com/2011-05-30/Mundo/NotasSecundarias/Mundo2758464.aspx
http://www.confidencial.com.ni/articulo/4103/la-embusa-y-el-gabinete-de-ortega
http://www.confidencial.com.ni/articulo/4104/d-rsquo-escoto-en-onu-ldquo-un-desafio-de-ortega-a-ee-uu-rdquo
http://www.confidencial.com.ni/articulo/4102/estrada-y-la-ldquo-doble-cara-rdquo-ante-ee-uu
http://www.confidencial.com.ni/articulo/3966/la-ldquo-injerencia-rdquo-de-ee-uu-en-el-2006
http://www.nacion.com/2011-05-23/Mundo/Relacionados/Mundo2758764.aspx
http://www.nacion.com/2011-05-23/Mundo/NotaPrincipal/Mundo2758753.aspx
http://www.confidencial.com.ni/articulo/4041/millones-de-dolares-sin-control-y-a-discrecion
http://www.confidencial.com.ni/articulo/4040/la-ldquo-injerencia-rdquo-de-venezuela-en-2006
http://www.confidencial.com.ni/articulo/4047/rodrigo-barreto-enviado-de-ldquo-vacaciones-rdquo
http://www.nacion.com/2011-05-16/Mundo/NotasSecundarias/Mundo2757239.aspx
http://www.nacion.com/2011-05-16/Mundo/NotaPrincipal/Mundo2746658.aspx
http://www.nacion.com/2011-05-16/Mundo/Relacionados/Mundo2757244.aspx
http://www.nacion.com/2011-05-16/Mundo/Relacionados/Mundo2746673.aspx
http://www.confidencial.com.ni/articulo/3991/dra-yadira-centeno-desmiente-cable-diplomatico-eeuu
http://www.confidencial.com.ni/articulo/3968/pellas-pronostico-a-eeuu-victoria-de-ortega-en-2006
http://www.confidencial.com.ni/articulo/3967/barreto-era-ldquo-fuente-confiable-rdquo-para-eeuu
VZCZCXYZ0000
OO RUEHWEB

DE RUEHMU #2116/01 2570114
ZNY CCCCC ZZH
O 140114Z SEP 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1279
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHCV/AMEMBASSY CARACAS 1178
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
C O N F I D E N T I A L MANAGUA 002116 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EEB/ESC, EEB/BTA, WHA/EPSC, WHA/CEN/TLERSTEN 
SAN JOSE FOR CS/JMCCARTHY 
DEPT PLEASE PASS TO USTR AND OPIC 
 
E.O. 12958: DECL: 09/12/2017 
TAGS: EINV EPET ETRD NU
SUBJECT: NICARAGUA: GOVERNMENT RETURNS EXXON FUEL DEPOT 
 
REF: A. MANAGUA 2055 
     B. MANAGUA 2016 
     C. MANAGUA 1952 
 
Classified By: Classified By: A/DCM Jerome Oetgen, Reason: E.O. 12958 1 
.4 (b) and (d) 
 
1. (C) Summary.  Exxon representatives informed the Embassy 
that Esso/Nicaragua's Corinto I fuel depot was returned to 
Esso/Nicaragua during the afternoon of September 13.  This 
triggered the signing of a memorandum of intent between the 
government and Esso/Nicaragua, stating Esso's willingness to 
negotiate the use of Corinto I for the handling of imported 
Venezuelan gasoline and diesel.  Exxon also promises to 
consider purchasing Venezuelan crude oil for its Managua 
refinery through Petronic, Nicaragua's state-owned petroleum 
importing and distribution company.  In recent days, the 
government has reiterated a series of complaints against 
Esso/Nicaragua for nonpayment of taxes and environmental 
crimes.  None seem valid, but this will likely not stop 
politicized courts or Ortega-controlled tax institutions from 
ruling otherwise, should the government want to reassert 
pressure against Esso in future. End Summary. 
 
2. (C) Esso/Nicaragua Country Manager Joaquim de Magalhaes 
told Econoff that the return of Corinto I fuel depot to Esso 
took place during the afternoon of September 13.  De 
Magalhaes described the transfer as "uneventful."  Judge 
Socorro Toruno appeared at the site around 1:00 p.m. to 
deliver the order reassigning control of the plant to 
Esso/Nicaragua.  This triggered the signing of the agreed 
upon memorandum of intent between the government and 
Esso/Nicaragua regarding future cooperation in the import of 
Venezuelan petroleum products. 
 
3. (C) In the end, the government agreed to Exxon's demand to 
return Corinto I and requirements to manage potential safety 
issues caused by state-owned Petronic modifications to 
Esso/Nicaragua's storage tanks.  Exxon's inspection Corinto I 
storage tanks is still ongoing at the drafting of this cable. 
 However, De Magalhaes told Econoff that so far there are no 
surprises; he is still waiting for the final report. 
 
4. (C) The memorandum of intent addresses Esso/Nicaragua's 
willingness to negotiate the use of Corinto I (either through 
contract, lease, or sale) to receive imported Venezuelan 
gasoline and diesel.  Total capacity of the seven tanks in 
question is 22,000 barrels.  This falls far short of a normal 
shipment of between 80,000 and 120,000 barrels, but is what 
Petronic lacks at the Port Corinto to do the job.  Esso's 
eighth tank in Corinto I holds 30,000 barrels, but actively 
used.  Esso's second facility, Corinto II, handles the 
balance and the bulk of Esso's storage needs at the Port of 
Corinto. 
 
5. (C) Esso/Nicaragua also promises to consider purchasing 
Venezuelan crude oil through Petronic for its Managua 
refinery.  The refinery processes around 21,000 barrels per 
day.  we believe that the proceeds of these purchases will be 
subject to Venezuela's commitments to ALBA, i.e., 25% of the 
revenues routed to an ALBA development bank and 25% routed to 
an ALBA fund.  We note that the annual oil import bill for 
Nicaragua is around $600 million.  The Nicaraguan government 
wants to source at least 50% of this from Venezuela in a form 
subject to ALBA commitments. 
 
6. (C) The government has given no indication that it is 
backing away from a series of claims against Esso/Nicaragua 
involving tax evasion and environmental crimes.  In fact, the 
government has recently reiterated these claims.  None seem 
valid, but this fact will likely not stop politicized courts 
or Ortega-controlled tax institutions from ruling otherwise, 
should the government want to reassert pressure on Esso in 
future.  The memorandum of intent includes the notion that 
the government will sit down with Esso to work through these 
issues. 
 
7. (C) Esso/Nicaragua has provided us with the following 
breakdown of government claims against the company, including 
charges of environmental crimes and negligence, as of 
September 7, 2007. 
 
Tax Assessment Arising from a Fiscal Audit of 2003-2006 
--------------------------------------------- ---------- 
 
8. (C) Esso/Nicaragua received a request from Nicaraguan tax 
authorities to conduct a tax assessment during the period 
2003-2006.  The scope of the assessment, which is still in 
progress, includes the corporate income tax, value added tax, 
energy consumption tax, and withholding taxes.  The 
government later expanded the period of the assessment to 
1996)2007, despite the fact that there is four-year statute 
of limitations on tax violations.  Esso will cooperate with 
the government's request for information, but is opposing the 
expansion of the assessment period. 
 
Customs Duties $6 Million 
------------------------- 
 
9. (C) Nicaraguan Customs claims that Esso/Nicaragua's 
refinery owes $6 million in unpaid duties related to crude 
oil imports.  Esso opposes the claim because petroleum is 
exempt by law from import duties.  Esso argues that importing 
the oil in question before filing for a tax exemption amounts 
to administrative problem requiring an administrative 
solution.  This was the claim that started the attachment 
order on Corinto I. 
 
Tax Notice Claiming $6 Million Payment 
-------------------------------------- 
 
10. (C) The first part of this notice is the government's 
claim that Esso/Nicaragua failed to pay $2 million in income 
tax during the period 2003-2006.  To make this claim, the 
government ignores the 25% tax rate that the government 
granted to Esso/Nicaragua under the terms of Esso's 
investment contract.  Instead, the government argues that 
today's 30% tax rate should apply, though it was instituted 
after the government signed the contract with Esso.  Esso 
argues that its investment contract is still valid under 
Nicaragua's foreign investment law and that the 25% rate 
still applies.  Esso has letters from tax authorities 
acknowledging this point. 
 
11. (C) The second part of this claim adds $4 million in 
unpaid energy consumption taxes (IEC) for the period 
1995)2007.  Here, the government challenges a credits taken 
for value added taxes in IEC returns.  Esso/Nicaragua plans 
to appeal on the grounds that it has obtained government 
approval to take these credits.  Esso argues that the logic 
of the IEC regime was to incorporate various taxes into a 
single tax on petroleum products. 
 
Tax Notice Claiming $40 Million in Unpaid Taxes 
--------------------------------------------- -- 
 
12. (C) This claim centers upon Esso/Nicaragua's supposed 
failure to pay $5 million in withholding taxes during the 
period 1993-2007.  Another $35 million is assessed on owed 
interest.  Esso claims that it properly paid this tax.  Tax 
authorities are still reviewing Esso's documentation to this 
effect. 
 
Tax Notice Claiming Unpaid Municipal Taxes of $5 Million 
--------------------------------------------- ----------- 
 
13. (C) In a long standing dispute, municipal authorities 
charge that Esso/Nicaragua, Shell, Texaco, and Petronic 
should pay a municipal business license fee assessed as a 2% 
tax on sales.  The companies lost their appeal, but 
petitioned the Supreme Court, where a final decision is 
pending.  The companies are braced for defeat, but argue that 
the law states that the sale of petroleum products is exempt 
from all municipal taxes.  Esso's share is $5 million. 
 
Environmental Crime ) Puerto Sandino 
------------------------------------ 
 
14. (C) The government has charged two Esso/Nicaragua 
executives with criminal negligence for the (severe) weather 
related spill of oil residue during contracted fuel tank 
cleaning in October 2006.  Esso has fully cooperated with 
authorities in cleaning up the spill and monitoring clean up 
activities.  The area has been thoroughly cleaned and 
certified by the responsible environmental agency.  No major 
or irreversible damage has occurred.  The six months 
limitation for a speedy trial has lapsed, but since December 
2006 the two Esso executives are prevented from departing the 
country. 
 
Environmental Negligence ) Oil Pipeline 
--------------------------------------- 
 
15. (C) Vandals cut the oil pipeline leading from the Port of 
Sandino to Esso/Nicaragua's refinery in Managua.  Esso 
promptly notified authorities, filed a police report, and 
began clean-up of the area.  Nonetheless, the Municipality of 
Managua fined Esso, and the Ministry of the Environment and 
Natural Resources is initiating an administrative charge 
against Esso. 
TRIVELLI