VZCZCXRO9692
RR RUEHBC RUEHDBU RUEHDE RUEHKUK RUEHLH RUEHMOS RUEHPA RUEHPW
DE RUEHNK #0330/01 0821849
ZNY CCCCC ZZH
R 231849Z MAR 06
FM AMEMBASSY NOUAKCHOTT
TO RUEHC/SECSTATE WASHDC 5285
INFO RUCNISL/ISLAMIC COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0157
RUEHRL/AMEMBASSY BERLIN 0215
RUEHBY/AMEMBASSY CANBERRA 0246
RUEHBAD/AMCONSUL PERTH 0210
RUEHZK/ECOWAS COLLECTIVE
RUEAIIA/CIA WASHDC
RUEKDIA/DIA WASHDC
RUEHNO/USMISSION USNATO 0158
RUCPDOC/DEPT OF COMMERCE WASHDC

C O N F I D E N T I A L SECTION 01 OF 02 NOUAKCHOTT 000330 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR AF/W; AF/EPS (A. ADLER J. HAENI); EB/ESC/IEC (K. 
RIOS); EB/CBA (D. WINSTEAD) 
DOC FOR 4510/IEP/ANESA/OA/PMICHELINI; 
6930/ITA/MAS/MFG/OEEI/ABRICKMAN 
DAKAR FOR RSCO CGRIFFIN 
 
E.O. 12958: DECL: 03/23/2016 
TAGS: BBSR ECON EFIN EINV EPET MR
SUBJECT: COMPROMISE NEAR ON WOODSIDE OIL DISPUTE? 
 
REF: A. NOUAKCHOTT 0170 
 
     ¶B. NOUAKCHOTT 0111 
     ¶C. NOUAKCHOTT 0067 
 
Classified By: CLASSIFIED BY AMBASSADOR JOSEPH LEBARON, REASON 1.4 (B), 
(D) 
 
-------------- 
(C) Key Points 
-------------- 
 
--  The Foreign Minister told Ambassador March 22 that the 
two sides are meeting in Paris right now to discuss a 
resolution, and that the talks are "going well."  But the 
Foreign Minister stressed that no agreement has yet been 
reached. 
 
-- The Foreign Minister added that the talks involve a 
mediator from the ruling al-Thani family of Qatar.  The 
mediator, whose full name the Foreign Minister did not 
have, resides in Dubai, and has for years, the Foreign 
Minister said. 
 
-- Meanwhile, Woodside is expected to export its first 
cargo this week.  The first cargo shipment of roughly one 
million barrels will be shipped to China. 
 
-- Also, inspectors from the Coast Guard International Port 
Security Liaison have given the green light for future 
shipments to sail to the U.S. 
 
------------ 
(C) Comments 
------------ 
 
-- Given this latest news, Embassy is more optimistic that 
a settlement of the dispute will be reached without 
recourse to formal arbitration.  The al-Thani assisted 
talks follow a visit by Col. Fal to Qatar on February 21. 
 
-- If the Qataris are successful in mediating this dispute, 
the result could well be stepped up Qatari involvement in 
Mauritania's oil and gas sector. 
 
End Key Points and Comments. 
 
-------------------------- 
A Compromise in the Works? 
-------------------------- 
 
¶1. (C) Both publicly and privately, the Embassy is seeing 
signs that the two sides are moving toward resolution of 
the dispute that has marred the otherwise positive 
development of first oil and first cargo from Mauritania. 
However, what is more telling is what we are not seeing, in 
that the government and Woodside are no longer debating the 
issue in the press or within the diplomatic community. 
 
¶2. (C) While the press continues to cover the Woodside 
dispute and the related pending trial of former oil 
minister Zeidane Ould H'Meida, articles appear to be more 
critical than before of the government.  The argument 
Zeidane's lawyers have made in the press that the Woodside 
amendments are similar to a contract the present government 
signed with German company Wintershall seems to resonate as 
well. 
 
¶3. (C) The Foreign Minister's remarks to Ambassador 
confirms information we have heard from other sources that 
the Qataris, and specifically representatives from al-Thani 
family business interests, are working to broker a 
compromise.  The Embassy understands that the al-Thani 
family wants to invest in gas exploration here and by using 
their good offices in this matter they will have opened the 
door to future ventures.  This will likely please local 
businessmen (the name Bouamatou keeps coming up in 
conversations) who have dealings with the Qataris. 
 
NOUAKCHOTT 00000330  002 OF 002 
 
 
 
¶4. (C) Woodside, which would likely welcome opportunities 
in Qatar, would have a strong interest as well for more 
Qatari involvement in Mauritania.  Post notes that, while 
not directly related to the Woodside case, during Fal's 
visit to Doha, the Qatar's steel company QASCO signed an 
MOU with Mauritania's national mining company SNIM to 
invest in a plant to produce iron ore. 
 
--------------------------------------------- - 
Australian Ambassador Presents Her Credentials 
--------------------------------------------- - 
 
¶5. (C) Australian Ambassador to France, Algeria, 
Mauritania, and Morocco Penelope Anne Wensley, in town 
March 15-22 to present her credentials, told Ambassador 
that she told Col. Fal that the situation with Woodside is 
a commercial dispute between partners.  She explained that 
it should be "resolved quickly and transparently, with 
respect to both sides, and have an outcome that is amicable 
with mutual benefits."  She reminded the Mauritanian 
authorities that they promised to respect all prior 
commercial contracts, which she believes they are not 
doing. 
 
¶6. (C) Wensley noted that Australian companies are the 
largest foreign investors in Mauritania.  The Australian 
government advocates investing in Africa but "investor 
confidence has been damaged and will further be damaged" as 
a result of this dispute. 
 
-------------------------- 
Oil Shipments to U.S. Soon 
-------------------------- 
 
¶6. (C) Meanwhile, Woodside's first cargo of roughly one 
million barrels will be shipped to China this week. 
Inspectors from the Coast Guard International Port Security 
Liaison have given Woodside the green light for shipments 
to sail to the U.S. in the near future. 
LeBaron