VZCZCXYZ0018
RR RUEHWEB

DE RUEHUJA #1555/01 2011229
ZNR UUUUU ZZH
R 201229Z JUL 07
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC 0313
INFO RUEHOS/AMCONSUL LAGOS 7442
RUEHNY/AMEMBASSY OSLO 0034
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC

UNCLAS ABUJA 001555 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
TREASURY FOR DPETERS 
USDOC FOR USDOC FOR 3317/ITA/OA/KBURRESS 
USDOC FOR 3130/USFC/OIO/ANESA/DHARRIS 
ENERGY FOR CAROLYN GAY 
 
E.O. 12958: N/A 
TAGS: EPET EAID PHUM EITI NI
SUBJECT: NORWEGIAN TECHNICAL ASSISTANCE IN OIL SECTOR 
 
¶1. (SBU) Summary: Norway has an MOU with the Nigerian 
Government to provide technical assistance in the oil 
sector to make available Norway's experience and 
expertise as an oil producing nation in managing the 
resource for national benefit.  The framework includes 
public/private institutional cooperation.  The program 
is overseen by a Counselor for Petroleum Cooperation who 
splits his time between Nigeria and Angola.  The key 
areas of cooperation in the Public Sector are policy and 
resource Management, Petroleum Activity monitoring, metering, Data 
management, Environmental and Safety 
Issues, Deepwater Technology, Training. The Private 
sector program includes enhancing local content and technology 
seminars. In addition, Norway is active in supporting the Extractive 
Industries Transparency Initiative (EITI), the Voluntary Principles 
Task for 
and The Gulf of Guinea Energy Security Strategy (GGESS). Norway sees 
the EITI as key to making progress, but 
finds its efforts are resisted by GON Petroleum 
officials and governors, but supported by the Finance Ministry and 
EFCC.   End Summary. 
 
¶2. (U) On June 28, the Norwegian Ambassador briefed 
the Ambassador on the Norwegian government's oil 
sector assistance in Nigeria. Since 2000 Norway has 
had an MOU with the Nigerian Government to provide technical 
assistance in the oil sector. The Norwegian government assistance is 
mainly provided through the Nigerian Department of Petroleum 
Resources (DPR), 
based in Lagos. The key goal of the technical assistance 
is to make available Norway's experience and expertise 
as an oil producing nation in managing petroleum 
resources for national benefit.  The program is overseen 
by a Counselor for Petroleum Cooperation who splits his time between 
Nigeria and Angola.  The key areas of cooperation in the Public 
Sector are policy and resource Management, Petroleum Activity 
monitoring, metering, 
Data management, Environmental and Safety Issues, 
Deepwater Technology, Training. Norway wants to expand 
the effort to include working with the Ministry of 
Finance and other bodies on petroleum revenue management issues. 
They also are increasing there activity on environmental protection 
have an MOU with the Ministry 
of Environment. 
 
¶3. (U) The framework also includes public/private institutional 
cooperation, which on the Nigerian side involves INTSOK a private 
consortium that includes the Norwegian government, Statoil and 
Hydro, and major oil services companies.  The focus of this program 
in 
Nigeria is enhancing local content in the upstream 
oil and gas industry. The second major activity is providing 
technical seminars in areas where Norwegian companies have 
significant expertise. 
 
¶4. (SBU) The National Planning Commission has been 
trying to persuade Norway to get involved in development issues in 
the Niger Delta.  While Norway is doing some things there via UNDP, 
Norway shares the concerns of 
other donors that governance issues make real assistance 
in the region hard manage effectively. Nonetheless Norway is very 
interested in increasing its development work and is preparing a new 
program called Oil for Development to focus more tightly on how to 
use oil resources to promote broader improvements in the welfare of 
the populations. Norway sees participation in the EITI as key for 
countries that want to be part of this new program. Norway also is 
active multilateral efforts of the Voluntary Principles Task for and 
the Gulf of Guinea Energy Security Strategy (GGESS). 
 
NEITI 
----- 
 
¶5. (SBU) Norway is active in supporting the Extractive Industries 
Transparency Initiative (EITI), and the 
Nigerian program (NEITI) specifically. NEITI has 
requested assistance in several areas from Norway. 
One proposal was to look at metering at wellheads, but 
the project is not going anywhere because Nigerian Petroleum 
officials say that that is not feasible. 
NEITI has asked for assistance to the Federal Internal Revenue 
Service (FIRS) and the Accountant General to 
set up processes to better account for and track 
petroleum taxes. NEITI would like to make the process 
for oil block licensing more transparent and has also 
asked Norway to provide salary support for NEITI staff. 
 
¶6. (SBU) The Norwegians report that the DPR is not supportive of the 
NEITI proposals and that the Nigerian National Petroleum Corporation 
and the Delta Governors 
tend to be obstructive. The EFCC has been one the NEITI's allies on 
these proposals.  For the moment it is not 
clear who is in charge of the NEITI. Former Education Minister Obi 
Ezewiskili left for the World Bank, and 
no new head has been named. Special Advisor to the 
Minister of Finance Bright Okugu had been in charge of 
day to day work, but he too has left and not been 
replaced. The current acting official is Stan Werri. 
The Norwegians believe that President Yar'adua will 
need to support NEITI if he is going to affect political change and 
get control of key levers of Nigerian power politics. 
GRIBBIN