VZCZCXYZ0003
RR RUEHWEB

DE RUEHHK #0824/01 1270211
ZNR UUUUU ZZH
R 060211Z MAY 08
FM AMCONSUL HONG KONG
TO RUCPDOC/USDOC WASHDC
INFO RUEHC/SECSTATE WASHDC 4802
RHMFIUU/HQ BICE WASHINGTON DC
RUEHGP/AMEMBASSY SINGAPORE 3846

UNCLAS HONG KONG 000824 
 
USDOC FOR 532/OEA/MNICKSON-DORSEY /DMUSLU 
USDOC FOR 3132 FOR FCS/OIO REGIONAL DIRECTOR WILLIAM ZARIT 
BICE FOR OFFICE OF STRATEGIC INVESTIGATIONS 
SINGAPORE FOR FCS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BMGT BEXP ETRD ETTC HK
SUBJECT: EXTRANCHECK: POST SHIPMENT VERIFICATION: SEISMIC CABLE 
REPAIRS PTE LTD 
 
REF: A) USDOC 01395 B) USDOC 01396 
 
1.Unauthorized disclosure of the information provided below is 
prohibited by Section 12C of the Export Administration Act. 
 
¶2. As per Reftel A request and at the direction of the Office of 
Enforcement Analysis (OEA) of the USDOC Bureau of Industry and 
Security (BIS), Regional Export Control Officer Philip Ankel (ECO) 
conducted a post shipment-verification (PSV) at Seismic Cable 
Repairs Pte. Ltd., Loyang Offshore Supply Base, Loyang Crescent Unit 
B19, Singapore (SCB). The items in question are depth limited 
hydrophones.  The items referenced in Reftel A are valued at USD 
27,000 and the items referenced in Reftel B are valued at 
approximately USD 103,000. The items are classified under Export 
Control Classification Number (ECCN) 6A991 and are controlled for 
anti-terrorism (AT) reasons.  The exporter for the items in Reftel A 
was Hydroscience Technologies of Mineral Wells, Texas while the 
exporter for the items referenced in Reftel B was Teledyne 
Instruments of Houston, Texas. 
 
¶3.  According to the Singapore companies registry, SCB was 
registered in 1989 and its registered share capital is the Singapore 
dollar equivalent of approximately USD 100,000.  Its directors are 
Singapore citizens Vincent De Silva, Leon Vashon De Silva, Shirlyn 
De Silva and Mrs. Vincent De Silva, Nee Doreen Tan Siam Choon. 
Shareholders are Mr. And Mrs. Vincent De Silva.  The company does 
not have a web site. 
 
¶4.  On April 21, 2008, the ECO, accompanied by a representative of 
Singapore Customs visited the company and met with Mr. Leon Vashon 
de Silva, General Manager, Mr. Vincent De Silva, Managing Director 
and Mrs. De Silva.  According to Vincent De Silva, the company was 
founded as a partnership between he and his wife in 1978.  In 1991, 
the company was registered as a limited company in Singapore.  It is 
a family business engaged in the repair of oil and gas exploration 
cables.  Its clients are multinational seismic companies engaged in 
oil and gas exploration.  Those customers include PGS Exploration, 
Scan Geophysical, CGG Veritas.  In turn, those customers are engaged 
by the world's major oil companies for exploration activities 
worldwide. 
 
¶5.  The hydrophones that are the subject of the PSV are used on 
cables that are themselves used to obtain seismic data from the sea 
bottom.  The new hydrophones are used to replace damaged hydrophones 
in cables brought to SCB for repair.  Old hydrophones are destroyed 
and sold for scrap. SCB's customers do not tell SCB the location 
where the cables are being used, primarily for commercial 
competitive reasons.  That is because those customers do not want 
competitors to know that one or more of their exploration boats is 
unable to work because of technical difficulties. However, Mr. 
Vincent De Silva stated that he is typically able to ascertain where 
the cables are being used because of some of the physical 
characteristics of the cables.  SCB's customers use various 
logistics companies to deliver and pick up the cable that is being 
repaired (typically in Singapore).  Mr. Leon Vashon De Silva 
stressed that SCB does not resell any hydrophones as such but only 
purchases those items for use in cables that it repairs. 
 
¶6.  As to the particular items in question, Mr. Leon Vashon De Silva 
provided documentation reflecting that SCB had received the items 
referenced in Reftel B.  These items had, in turn, been turned over 
to Scan Geophysical as part of repaired cable.  Mr. Leon Vashon De 
Silva provided documentation reflecting receipt of the items in 
Reftel A and subsequent delivery to Dalmorneftegeophysica 
(www.dmng.ru) as part of repaired cable.  According to Mr. Leon 
Vashon De Silva, this company has two boats in the region conducting 
various oil and gas exploration projects.  He noted that this 
company has switched to a French system and will likely no longer 
need replacement hydrophones from the United States. 
 
¶7.  Mr. Leon Vashon De Silva was very well versed in U.S. export 
controls on the applicable items.  He as quite pleased to meet the 
ECO and discussed at length the company's troubles associated with a 
prior attempt to obtain more controlled (but apparently cheaper) 
hydrophones.  That attempt was not successful as a result of a BIS 
license denial referenced in Reftels A and B.  Mr. Leon Vashon De 
Silva attended a BIS seminar held in Singapore in 2005 and relayed 
the company's attempt to legally acquire other hydrophones.  He 
stressed that the company does not sell the hydrophones except as a 
part of works contracts for seismic exploration services providers. 
He also stressed that his company does not do business with any of 
the sanctioned countries.  He also stated that his company is not 
related to Seismic Singapore and that this company had gone out of 
business some time ago. 
 
¶8.  In addition, Mr. De Silva also pointed out to the ECO (during a 
 
 
tour of the facility) that Teledyne Instruments (the supplier in 
Reftel B) had itself opened a cable repair facility immediately 
adjacent to the SCB facility.  He further stated that Teledyne had 
offered to acquire SCB but had been rebuffed (apparently on account 
of price).  In effect, Teledyne is now both a supplier of 
hydrophones but also a direct competitor in the cable repair 
business. 
 
¶9.  At the time visited, SCB appeared to be a suitable recipient of 
the commodities shipped since SCB cooperated with the PSV, provided 
ECO with access to all appropriate documents and operates a line of 
business consistent with the use of the items.  Also, SCB was 
informed of applicable export control rules (especially those 
relating to reexports to sanctioned countries) and indicated its 
intent to comply with them.