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Viewing cable 03AMMAN861, SAUDIS TELL KING ABDULLAH THEY WILL JOIN OIL DEAL;

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Reference ID Created Released Classification Origin
03AMMAN861 2003-02-06 16:42 2011-08-30 01:44 SECRET Embassy Amman
This record is a partial extract of the original cable. The full text of the original cable is not available.
S E C R E T AMMAN 000861 
 
SIPDIS 
 
E.O. 12958: DECL: 02/06/2013 
TAGS: PREL EPET MARR IZ EAID SA KU JO UA
SUBJECT: SAUDIS TELL KING ABDULLAH THEY WILL JOIN OIL DEAL; 
JORDAN WILL ASK FOR REIMBURSEMENT FOR IRAQ HUMANITARIAN 
RELIEF COSTS 
 
Classified By: Amb. Edward W. Gnehm for reasons 1.5 (B) and (D) 
 
--------------------------------------------- ------------- 
CP ABDULLAH MAKES FUZZY COMMITMENT TO SUPPLY OIL TO JORDAN 
--------------------------------------------- ------------- 
 
1.  (S)  King Abdullah told the Ambassador and PolCouns 
February 5 that Saudi CP Abdullah confirmed to him during his 
February 4 visit to Saudi Arabia that the Saudis are prepared 
to provide Jordan with oil in the event of a cutoff in 
supplies from Iraq.  The King said the oil would come through 
Yanbo, and that the Saudis were "seeking an increased 
commitment from Kuwait and the UAE" on the oil deal.  CP 
Abdullah told the King he wants to see "50 - 50, plus 50 from 
Saudi Arabia" (presumably meaning provision of 50,000 bpd to 
Jordan from each of the three countries).  The King 
commented, however, that there was "no practical conversation 
about the details" of the possible oil deliveries on either 
price or specific delivery mechanism.  In a separate 
conversation February 6, Prime Minister Ali Abul Ragheb told 
the Ambassador that Saudi Oil Minister Naimi told him that 
Jordan could send a ship to Yanbo and get Saudi oil "on 24 
hours notice."  Abul Ragheb understood from the Saudis that 
such an arrangement would last for three months "assuming 
that oil shipments from Iraq will come back."  "I know that I 
am now getting my oil," he concluded. 
 
2.  (S)  In a separate conversation with Ambassador and 
PolCouns February 5, Foreign Minister Marwan Muasher repeated 
the substance of the King's remarks.  Based on the 
Jordanians' conversations with the CP, Muasher said, "things 
seem to be going well" with the Saudis on oil.  "The Crown 
Prince told us 'we will cover your needs,' but no one has yet 
given us the terms.  We think they will be favorable, but we 
don't know the final quantities or the price."  He noted that 
Jordanian Energy Minister Mohammad Bataineh had recently met 
with the Saudi, UAE, and Kuwaiti oil ministers in Abu Dhabi, 
"and the UAE Minister didn't even know about the deal." 
Muasher said he had called UAE MinState for Foreign Affairs 
Prince Hamdan later to confirm that the deal was still on the 
table, and Hamdan said he would make sure his oil minister 
was brought into the loop. 
 
3.  (S)  PM Abul Ragheb said that he was also looking at the 
possibility that Saudi Arabia and Kuwait (or Saudi Arabia 
alone) could supply all of Jordan's oil needs, and that the 
UAE (or the UAE and Kuwait) would make a monetary 
contribution in lieu of actual petroleum.  Abul Ragheb said 
he would go to Abu Dhabi and Kuwait after the Eid to try to 
work out details of such an arrangement (although he also 
said during another part of the conversation that GID 
Director Saad Kheir was in charge of this deal). 
 
--------------------------------------------- ---------- 
IRAQ RELIEF EFFORTS:  "WE NEED TO GET BACK EVERY PENNY" 
--------------------------------------------- ---------- 
 
4.  (C)  Ambassador and PolCouns briefed the King and Muasher 
on the visit of the PRM/OFDA Humanitarian Planning Team, 
emphasizing the team's desire to work out mechanisms to 
increase coordination between the Jordanian Armed Forces 
(JAF), the U.S. military, UN agencies, and NGOs in the event 
of war.  Muasher and the King welcomed the news of a USD 15m 
grant to UN agencies and hoped this would permit UNHCR to 
reimburse some of the GOJ's costs associated with possible 
flows of refugees and/or third country nationals into and 
through Jordan.  Noting that Jordan got almost no 
international assistance to cover its refugee/TCN costs 
during the 1990-91 Gulf War, Muasher quipped "We need to get 
back every penny we spend.  If UNHCR can pay, fine.  If they 
don't pay, we will ask you (the USG)." 
 
GNEHM 
GNEHM