VZCZCXRO7753
PP RUEHMA RUEHPA
DE RUEHUJA #2049/01 2910644
ZNR UUUUU ZZH
P 170644Z OCT 08
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 4202
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 0086
RUEHYD/AMEMBASSY YAOUNDE 0423
RUEHZK/ECOWAS COLLECTIVE
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF LABOR WASHDC

UNCLAS SECTION 01 OF 02 ABUJA 002049 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR DRL TDANG 
DEPT PASS TO USTR FOR AGAMA 
LABOR FOR SHALEY 
 
E.O. 12598: N/A 
TAGS: ELAB PHUM EPET PGOV EINV PREL NI
SUBJECT: DRL DAS KRILLA DISCUSSES VOLUNTARY PRINCIPLES WITH GON 
OFFICIALS AND IOC'S 
 
SENSITIVE BUT UNCLASSIFIED - NOT FOR DISTRO OUTSIDE USG 
 
¶1. (SBU) Summary: DRL DAS Krilla met in Abuja with representatives 
of the offices of the President and Vice President and separately 
with international oil company (IOC) representatives to discuss the 
Voluntary Principles on Security and Human Rights and the potential 
for their wider implementation in Nigeria's oil and gas sector.  GON 
engagement on the voluntary principles is still in the early stages. 
 IOC representatives discussed challenges to doing business in 
Nigeria, but stated they want to work more closely with the GON and 
state governments to further voluntary principles.  End Summary. 
 
¶2.  (SBU) DAS Krilla met with the Vice President's desk officer for 
the Niger Delta Oranto Douglas and Presidential advisor Ken 
Saro-Wiwa Jr. in Abuja on September 8, 2008.  Krilla briefed on his 
experience with and interest in the voluntary principles and asked 
Douglas and Sara-Wiwa Jr their thoughts on the subject.  They 
explained that they had been deeply engaged for decades in voluntary 
principle concepts along with human rights and championed 
environmental rights.  They lamented that under military rule, prior 
to 1999, civil society suffered harassment, beatings, rape, 
executions, and arrest without charges or bail, especially in the 
southern Nigerian area known as the  Delta.  Their history of human 
and environmental rights advocacy convinced President Yar'Adua and 
Vice President Jonathan to request their becoming personal staff 
with the intent to advise and engage to strike a balance with local, 
state, and national levels on human rights, security, voluntary 
principles and corporate responsibility.  Douglas underscored that 
Nigeria is an evolving state, and needed Western influence and 
continued support. 
 
¶3. (SBU) DAS Krilla encouraged Douglas and Saro-Wiwa to further 
engage the GON on voluntary principles and asked what U.S. 
assistance is needed to build capacity.  Saro- Wiwa Jr noted that he 
and Douglas had just left the State House, where they participated 
in the inaugural meeting of the Niger Delta Technical Advisory 
Committee.  This committee is charged with developing a peaceful and 
economic way forward for the Niger Delta to provide sustainable 
solutions to the decade's old Niger Delta crisis and its miserable 
legacy of human rights woes, environmental disasters, and other 
wrongful deeds.  Both men were hopeful and optimistic toward the 
success of the committee.  They strongly encouraged the U.S. to 
support community empowerment in the Delta. 
 
¶4. (SBU)  Saro-Wiwa continued by noting the need to support the 
Rivers State First Lady in her program that teaches small children 
empowerment and social responsibility from as early as preschool 
age.  This program seeks to teach non-violence and discourage young 
people from joining "militant" groups.  The effort is in direct 
response to what is known as the "Lost Generation," those teens and 
young twenty-somethings huddled in gangs in the deep Delta, living 
well off bunkering and other unlawfulness.  People want a better 
life and demand good roads, electricity, potable water, jobs, good 
schools, functional health care facilities, and a safe and secure 
environment. 
 
¶5. (SBU) On September 9, DAS Krilla chaired an IOC roundtable 
discussion on the voluntary principles.  Attending with Krilla were 
A/S Kramer and Pol Counselor.  The IOC guests were Abubakar Amed, 
Shell Abuja Office Director; Noble Pepple ,Shell External Affairs 
Manager, Vincent Olaiya ExxonMobil, Manager of Government and 
Business Relations, and his colleague Tauhida Zayyad, Advisor for 
Government and Business Relations, and Senator Aluku, Chevron 
Director of Government Affairs and Policy. 
 
¶6. (SBU) The IOC representatives reported on their companies' 
voluntary principle efforts and noted specifically that these 
efforts included active and long term community programs.  They said 
that there is currently negative incentive toward further gas 
exploration and that taxation of proceeds is among the highest in 
the world.  Nigerian businesses are allowed to hide profit and duck 
taxation, where IOCs are paying tax on profit calculated on gross 
sales without normal and expected expenses, including money 
channeled back to the Government of Nigeria, which in most cases 
owns up to 60 percent of joint venture. 
 
¶7. (SBU) The IOCs see the Nigerian National Petroleum Committee 
(NNPC) as a non-performing entity.  They welcome a breakup and 
reorganization, but lament that traditionally the same old players 
become reappointed to leadership roles, netting no gain.  The IOCs 
believe that USG direction in carrying out this reorganization would 
 
ABUJA 00002049  002 OF 002 
 
 
be a huge plus going forward.  To give a perspective on the rich oil 
companies vs. poor Nigeria, the IOCs give 95 percent of their 
profits to the GON after expenses.  Each joint venture entity has an 
MOU that determines sharing percentages.  Many are 60/40, Shell 
stated that theirs was 55/30/10/5.  Also as a perspective on state 
government wealth, the budget of Rivers State in the Delta Region is 
25 percent of the national budget of Ghana.  The IOCs welcome 
helpful dialogue, particularly on local content legislation, NNPC 
reorganization, and gas pricing.  Qualified technical experts (not 
IOC related) would help to open dialogue.  Also, a champion in the 
government for better relations between the GON and the IOCs and for 
joint contributions to the voluntary principles would be ideal.  The 
IOCs remain committed to voluntary principles and to mentoring 
Nigerian businesses. 
 
¶8. (U) This cable was coordinated with Consulate Lagos.  DAS Krilla 
did not have an opportunity to clear this message. 
 
PIASCIK