VZCZCXYZ0013
RR RUEHWEB

DE RUEHSF #0101/01 0461458
ZNR UUUUU ZZH
R 151458Z FEB 08
FM AMEMBASSY SOFIA
TO RUEHC/SECSTATE WASHDC 4770
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC

UNCLAS SOFIA 000101 
 
SIPDIS 
 
SIPDIS 
 
EEB/ESC/IEC FOR B. GLENN GRIFFIN, EUR/ERA, EUR/NCE, EUR/SCA 
 
E.O. 12958: N/A 
TAGS: ENRG SENV APER ABUD
SUBJECT: BULGARIA:  INPUT FOR NEW REQUIRED REPORT TO 
CONGRESS ON ENERGY 
 
REF: SECSTATE 10743 
 
¶1.  (U)  The following is Embassy Sofia's response to reftel, 
which requests input for two new reports to Congress on 
energy. 
 
BACKGROUND:  BULGARIA: INCREASINGLY AT THE CENTER OF ENERGY 
SECURITY ISSUES 
 
¶2.  (U)  Bulgaria is increasingly on the front line of 
European energy security issues.  A hydrocarbon-poor country, 
Bulgaria is turning into a major transit point for proposed 
oil and gas pipelines.  On the gas side, Bulgaria is party to 
the Nabucco pipeline project, which will bring Azerbaijani 
gas to Europe.  In January 2008, it signed an 
intergovernmental agreement with Russia to build the South 
Stream pipeline, designed to bring gas from Russia to Europe. 
 On the oil side, Bulgaria is party to the 
Burgas-Alexandroupolis pipeline, a Bosphorus-bypass project 
that will bring Caspian and Russian oil from the Bulgarian 
port of Burgas to the Greek port of Alexandroupolis. 
Bulgaria will also host the proposed AMBO pipeline, which 
seeks to bring Caspian and Russian oil from Burgas, across 
Macedonia, to the Albanian port of Vlore.  Over ninety 
percent dependent on Russian gas itself, Bulgaria is 
balancing the need to keep Russian gas flowing while looking 
for ways to diversify its energy sources.  The answers 
include the Nabucco gas pipeline; a potential LNG terminal; 
the planned, Russian-designed, nuclear power plant at Belene; 
increased use of renewable energy; and savings associated 
with greater energy efficiency.  In February 2008, the World 
Energy Council named Bulgaria the most energy inefficient 
country in the European Union. 
 
¶3.  (U)  Bulgaria's strategic location, increasing importance 
as a pipeline transit country, and extremely cost-competitive 
operating environment, make Embassy Sofia an ideal platform 
from which to launch any new USG initiatives on energy 
security in Europe.  With ample space in its new, 
state-of-the-art embassy, Mission Sofia could host an 
EU-energy security-focused Energy attache from the Department 
of Energy, a regional energy officer from the State 
Department, additional State Department Public Diplomacy 
staff which could manage regional, energy-focused PD 
programs, and other energy security-focused federal employees 
who could provide regionally-focused research, training 
programs, U.S. business advocacy, and technical assistance on 
energy.  Bringing together such a group of energy-security 
focused USG officials at "Energy Center Sofia" would help the 
USG answer the new strategic imperative posed by the emerging 
dominance of particular energy suppliers. 
 
EMBASSY ACTIVITIES 
 
¶4.  (U)  In addition to providing extensive reporting on the 
pipeline projects that are proposed to transit Bulgaria and 
these project's potential effect on European energy security, 
in 2007 the Embassy: 
 
-- Led and hosted, in December 2007, the USG Energy Reporting 
Officers conference.  This two-day event brought together 
more than 40 officers from 30 different posts and U.S. 
Government agencies to discuss pipeline projects and energy 
security. 
 
--  Supported, in connection with the above-mentioned Energy 
Conference, the visits of the EUR DAS for Energy Issues and 
EEB Energy Coordinator. 
 
-- Urged, through intense high-level engagement, the 
Government of Bulgaria to protect its interests when 
negotiating pipeline deals. 
 
-- Supported the planning of a local NGO's conference on 
energy security in Europe. 
 
-- Briefed U.S. firms interested in entering Bulgaria's 
energy sector. 
 
-- Advocated for a major U.S. renewable energy company when 
it encountered bureaucratic obstacles related to a major 
project in Bulgaria. 
 
--  Instituted an Embassy working group focused on energy and 
investment issues. 
 
 
¶5. (U)  A.  Within Embassy Sofia, the Political/Economic 
section takes the lead on gas and oil issues.  The Executive 
 
Office is heavily engaged in Energy as well.  Department of 
Commerce and USAID staff who worked on energy issues in 2007 
are not covered in this cable. 
 
¶B.  Positions of State Department employees that work on 
energy matters and the percentage of time they devote to 
energy: 
 
--  Ambassador:  15 percent of time 
--  Deputy Chief of Mission:  5 percent of time 
--  Pol/Econ Counselor:  5 percent of time 
--  Economic Officer:  60 percent of time 
--  Pol/Econ OMS:  5 percent of time 
--  Pol/Econ FSN:  30 percent of time 
 
¶C.  Description of the positions of employees and the kinds 
of work they do: 
 
-- Ambassador:  Engages highest level host government 
officials on energy and energy security issues; advocates 
U.S. policy on energy; engages the media on U.S. energy 
policy and energy security issues; maintains contacts with 
U.S. energy companies. 
 
--  Deputy Chief Of Mission:  Engages host government 
officials and business representatives on energy and energy 
security issues. 
 
--  Pol/Econ Counselor:  Supervises the work of the Economic 
Officer handling the energy portfolio. 
 
--  Economic Officer:   Advocates U.S. policy on energy and 
energy security issues; reports on developments in the energy 
sector; reports on energy-related meetings; engages host 
government officials on energy and energy security issues; 
extends and deepens contacts with U.S. and local energy 
companies; supports energy-related visits; coordinates work 
of the Embassy working group on energy issues. 
 
--  Pol/Econ OMS:  Supports energy-related work of Pol/Econ 
Chief and Economic Officer. 
 
--  Econ/FSN:  Researches and reports on developments in the 
energy sector; expands contacts with energy sector officials 
and companies; supports energy-related visits. 
 
¶D.  Budget: 
 
    Base Salary Costs: 106,044 
    Programs:  None in 2007. 
 
¶6.  (U)  Comment:  Energy security is increasingly a 
strategic imperative for the United States.  If the USG plans 
to allocate additional resources to deal with this issue in 
Europe, Embassy Sofia should be considered as a location from 
which to run regionally-focused programs of all types - 
analytical research, public diplomacy, training, export 
promotion.  For additional information on the "Sofia Energy 
Center" concept, please contact Economic Officer Kelly 
Adams-Smith at adamssmithke@state.gov. 
Beyrle