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Reference ID	Created	Released	Classification	Origin
06SANAA1788	2006-06-19 09:24	2011-08-30 01:44	UNCLASSIFIED	Embassy Sanaa

VZCZCXRO3262
PP RUEHDE
DE RUEHYN #1788 1700924
ZNR UUUUU ZZH
P 190924Z JUN 06
FM AMEMBASSY SANAA
TO RUEHC/SECSTATE WASHDC PRIORITY 4379
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY

UNCLAS SANAA 001788 
 
SIPDIS 
 
SIPDIS 
 
PLEASE PASS TO EB/IFD/OIA FOR JAMES ROSELI; L/CID FOR EMILY 
DAUGHTRY. 
 
E.O. 12958: N/A 
TAGS: PGOV PREL CASC KIDE EINV ECON YM
SUBJECT: YEMEN 2006 REPORT ON INVESTMENT DISPUTES AND 
EXPROPRIATION CLAIMS 
 
REF: SECSTATE 60294 
 
¶1. The United States Government is aware of two ongoing 
claims of United States persons against the Republic of Yemen 
Government (ROYG).  The following information is keyed to 
reftel instructions. 
 
------------------------- 
Claim 1: Property Dispute 
------------------------- 
 
a.  Claimant A 
 
b.  2005 
 
c.  Claimant A opened an American Citizen Services property 
case with the Embassy on 25 September 2005 regarding his 
claim against the Sanaa Governate.  Claimant A contends that 
the Governate seized 113 "libnas" of his land (a libna is a 
local unit of land area equal to roughly 210 square meters). 
The seized portion of land is part of a larger 250-libna 
block in the Beir Obeid zone of Sanaa where the government is 
planning to build a new road.  According to Claimant A's 
lawyer and an official in the Sanaa Governate Capital 
Secretariat, compensation for the land seizure would require 
 
SIPDIS 
the personal approval of Sanaa's mayor.  To date, Claimant 
has received no decision on compensation in the case, though 
local officials say the responsibility for pursuing the 
compensation claim lies with Claimant A.  Rather than pushing 
for compensation, Claimant A maintains that the entire 
seizure is inappropriate and that the property should be 
returned. 
 
-------------------------------- 
Claim 2: Canceled Oil Concession 
-------------------------------- 
 
a. Claimant B 
 
b. 2005 
 
c. On 14 November 2005, Claimant B's production sharing 
agreement (PSA) with the ROYG expired.  The PSA covered an 
oil concession in Block 18 in the Mareb region, and was taken 
over by the Government-owned Safir Exploration and Production 
Operations Company.  Claimant B signed a five-year extension 
agreement with the Ministry of Oil in January 2004, and 
believes the agreement is binding.  The claimant also argues 
that the ROYG required the company to commit to additional 
investments based on the extension agreement.  The ROYG 
contends that the agreement required, and failed to obtain, 
parliamentary approval and is therefore not legally binding. 
Claimant B filed arbitration procedures against the ROYG on 
21 November 2005 before the International Chamber of Commerce 
in Paris, and seeks damages of more that USD 1 billion.  The 
case is ongoing, and post expects both sides to abide by the 
outcome of the ICC. 
 
--------------------- 
Identity of Claimants 
--------------------- 
 
Claimant A:  Noman Al Huth.  American citizen at time of 
taking.  Has not signed Privacy Act Waiver. 
 
Claimant B:  Yemen Exploration and Production Company.  An 
American company at time of taking, comprised of Hunt Oil 
Company and Exxon Mobil Corporation.  The company has not 
singed a Privacy Act Waiver. 
Krajeski

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Viewing cable 06SANAA1788, YEMEN 2006 REPORT ON INVESTMENT DISPUTES AND