VZCZCXYZ0000
RR RUEHWEB

DE RUEHMS #0053/01 0261408
ZNY CCCCC ZZH
R 261408Z JAN 10
FM AMEMBASSY MUSCAT
TO RUEHC/SECSTATE WASHDC 1170
INFO GULF COOPERATION COUNCIL COLLECTIVE
RHEBAAA/DEPT OF ENERGY WASHINGTON DC

C O N F I D E N T I A L MUSCAT 000053 
 
SIPDIS 
STATE FOR NRC. 
 
E.O. 12958: DECL: 2020/01/26 
TAGS: PREL ENRG TSPL MU
SUBJECT: OMAN AND THE U.S. KICK OFF CIVIL NUCLEAR COOPERATION 
 
REF: 09 MUSCAT 575; 09 MUSCAT 405 
 
CLASSIFIED BY: Richard Schmierer, Ambassador, Department of State, 
Embassy Muscat; REASON: 1.4(B), (D) 
 
¶1. (C) SUMMARY: A U.S. delegation composed of experts in the field 
of civil nuclear technology met on January 24 with Oman's Nuclear 
Steering Committee regarding areas for potential cooperation. The 
composition of the Committee, with members from relevant 
ministries, is indicative of Oman's serious interest in developing 
its civil nuclear capabilities. The new, and by Omani standards 
rapidly progressing, interest in civil nuclear technology, is 
unsurprising given the government's recognition that Oman will 
require twice the amount of energy it now consumes in a mere ten 
years. Therefore, the Committee seemed keen for future cooperation 
with the U.S., particularly in developing appropriate human 
resource capacity to handle Omani nuclear endeavors. This is an 
ideal and crucial time for U.S. nuclear cooperation with Oman. END 
SUMMARY. 
 
 
 
¶2. (C) MEETINGS BETWEEN U.S. DELEGATION AND OMAN'S NUCLEAR STEERING 
COMMITTEE: On January 24, a team of civil nuclear experts from the 
Department of State and the Department of Energy, led by Alex 
Burkart, Deputy Director of the Office of Nuclear Energy, Safety 
and Security in the Department of State, met with members of Oman's 
Nuclear Steering Committee to discuss areas for U.S. - Oman 
cooperation. Oman's Nuclear Steering Committee is composed of 
Sayyid Badr, Secretary General of the Ministry of Foreign Affairs 
and chairperson of the Committee, Dr. Hadj Slimane Cherif, Head of 
the Peaceful Nuclear Technology Office (PNTO), Hafidh Al Ghannami, 
Economic Expert at the Ministry of National Economy, Dr. Ahmed Al 
Rawas, Professor of Physics at Sultan Qaboos University, Ali Al 
Ghafri, Director General at the Public Authority for Electricity 
and Water, Dr. Mohammed Al Busaidi, Ambassador at the PNTO, and 
Fauod Al Farsi, Assistant Legal Advisor at the Ministry of Legal 
Affairs. 
 
 
 
¶3. (C) INTEREST IN WORKING WITH THE U.S.: The Committee was 
receptive to many of the U.S. nuclear cooperation programs 
presented by the delegation, although it noted on two occasions the 
need to tailor the programs to meet specific needs in Oman. The 
delegation members emphasized the need for an independent 
regulatory authority for Oman's nuclear programs/activities, a goal 
which the Committee had already identified and strongly supports. 
The Committee members sought U.S. delegation assistance to properly 
establish a nuclear regulatory framework, although the specifics of 
such a framework were not discussed. Although not mentioning a 
specific purpose, Omani officials inquired several times about 
entering into a MOU with the Departments of Energy and State with a 
likely goal to solidify the partnership with the U.S. (NOTE: 
EconOff has previously been asked about potential MOUs, as Dr. 
Cherif was following up on conversations he had with Department of 
Energy and Nuclear Regulatory Commission officials at an IAEA 
conference over a year ago. These conversations took place prior to 
the Omani MOU on nuclear cooperation with the Russians (para 4). 
END NOTE).The delegation explained that a MOU is not immediately 
necessary for cooperation and, depending upon the type of 
assistance requested, "statements of intent to cooperate" and/or 
"agreements for cooperation" may be required. The Omanis were 
keenly interested in these options. Committee members, especially 
Dr. Al Rawas, expressed particular interest in State's nascent 
international reactor laboratory. The Committee, however, clarified 
that they are not interested in discussing a 1-2-3 Agreement at 
this time. 
 
 
 
¶4. (C) OMAN'S NUCLEAR STEERING COMMITTEE AND INTERNATIONAL 
INVOLVEMENT: The Nuclear Steering Committee is new to Oman, having 
been formed by Royal Decree in January 2009. In the short period 
since it was formed, the Committee has been active, spearheading 
Oman's entry into the International Atomic Energy Association 
(IAEA) on February 5, 2009 and completing a MOU with Russia's 
Nuclear Energy State Cooperation Commission in June 2009 (reftel 
A). (NOTE: Oman's first international agreements on nuclear issues 
were its accession in 2006 to the Non-Proliferation Treaty and its 
membership in the Global Nuclear Energy Partnership which began in 
¶2008. END NOTE). Since joining the IAEA, Oman has benefitted from 
technical cooperation focusing on energy planning and human health 
applications in 2009, and energy planning, human health, 
environmental and radiation in 2010. 
 
¶5. (C) NUCLEAR STRATEGY: During the meeting Dr. Cherif set forth 
the current vision for nuclear development in Oman involving a 
strategic framework which will occur in phases. The initial phase 
would have two parallel goals of developing a regulatory framework 
and cultivating the human resource expertise to work in the nuclear 
field. Accordingly, the Committee heavily emphasized the need to 
have Omanis who have hands-on experience working with nuclear 
materials. The second phase would include direct work with nuclear 
materials, including the expansion of the nuclear medicine program 
and radioactive material disposal. Following Oman's typically 
cautious style, more ambitious projects would then be considered 
once the proper infrastructure is in place. Based upon the 
Committee's inquiries this might include a Phase IV reactor, most 
likely a small modular light water reactor. 
 
 
 
¶6. (C) POTENTIAL REGIONAL COOPERATION: The Committee also clarified 
the Gulf Cooperation Council's (GCC) approach in the nuclear field 
to delegation members. From the Committee's standpoint the focus of 
the GCC working group for cooperation is on the peaceful use of 
nuclear energy for electricity and desalinization. However, the GCC 
has not yet identified any particular areas for cooperation among 
member states nor defined basic parameters, such as whether GCC 
members would share a common infrastructure or allow joint 
ownership. 
 
 
 
¶7. (C) OMAN'S ENERGY NEEDS: The formation of the Committee was 
timely due to the anticipated dramatic increase in Oman's 
electricity demand, forecasted to jump from this year's 4000 
megawatts (mw) to 8000 mw by 2020. In addition to nuclear power, 
Oman is currently exploring several alternative sources of energy 
to satisfy the increased demand,  including wind and solar power, 
coal, and natural gas. Alternative forms of energy are unlikely to 
meet Omani demands by 2020, however. Based upon current technology, 
the most optimistic projection is that there will be one solar 
power plant capable of producing 200 mw by 2020. Due to Oman's 
focus on the environment, coal is also unlikely to be a source of 
energy for Oman, a point which was confirmed to Econoff by two 
Committee members who were part of the symposium created by royal 
directive to study the use of coal. However, the Oman News Agency 
(ONA), reporting on the symposium, intoned that coal will be the 
last resort if no other cost-effective options or technological 
advancements are identified. Oman has already identified the 
Iranian Kish gas field as a potential source of natural gas to 
serve its energy needs (reftel B). Due to a costly price tag a deal 
has yet to be struck, although there are rumors of an arrangement 
wherein Uzbekistan would sell natural gas to Iranian to free up the 
Kish resources to be sold to Oman. Regarding nuclear power, the 
Committee informed the delegation that a feasibility study will 
shortly be conducted upon which the strategic framework for nuclear 
development in Oman will be based. However, it was made clear 
throughout the discussions that the Omanis have not yet decided to 
pursue nuclear power as a source of energy. 
 
 
 
¶8. (C) COMMENT. In less than five years Oman has joined major 
nuclear treaties and organizations, created a nuclear technology 
office within the MFA,  formed a nuclear steering committee 
composed of stakeholders from various ministries, and begun 
engagement for technical assistance with the IAEA. By Omani 
standards, civil nuclear development is moving at warp speed. 
However, despite the rapidity of progress, Oman remains pragmatic 
in its nuclear plans. The progression from the planned feasibility 
study to a strategic plan and then to implementation in phases is a 
tempered approach. The pace of development is probably reflective 
of Oman's tremendous need for another energy source and the 
relative paucity of viable options. Although a small country, Oman 
has dramatically developed in less than 40 years and shown accuracy 
in its ability to predict future needs as well as a strong 
commitment to obtaining the resources necessary to carry out its 
ambitious development plans. As the USG has continually discouraged 
Oman from partnering with Iran on the Kish gas fields, and as Oman 
has shown a willingness then to turn to others if the USG is 
unresponsive, it is in our strategic interest to assist Oman in 
viewing nuclear power as a viable alternative to a long-term 
commitment with Iran. Entering into nuclear cooperation agreements 
with Oman in a timely manner is the best way to advance our 
interests. END COMMENT. 
Schmierer