

Currently released so far... 6230 / 251,287
Articles
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Amsterdam
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lagos
Mission USNATO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate Shenyang
Consulate Shanghai
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Tijuana
USUN New York
USEU Brussels
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Browse by tag
ASEC
AF
AE
AR
AORC
AJ
AU
AM
ABLD
AL
AMGT
ASUP
AFIN
APER
ABUD
AVERY
APCS
AEMR
ADCO
APECO
ASIG
AG
AA
AS
AFFAIRS
ASECKFRDCVISKIRFPHUMSMIGEG
AMED
AO
ACOA
AX
AROC
ATFN
ASEAN
AFGHANISTAN
AFU
AER
ALOW
AODE
ATRN
AID
AC
AGMT
CH
CO
CS
CE
CU
CLINTON
CG
CVIS
CMGT
CI
CJAN
CF
COM
CASC
CA
CBW
CM
CDG
CR
COUNTER
CD
CWC
CKGR
CN
CPAS
CJUS
CV
CONS
CT
CY
COUNTERTERRORISM
CIA
CACM
CDB
CAN
COE
COUNTRY
CLEARANCE
CACS
CONDOLEEZZA
CARSON
CL
CIS
CODEL
CTM
CB
ECON
EFIN
EAIR
EUN
EINV
ENRG
EG
ETRD
EPET
ETTC
ELAB
EU
ER
ET
EAGR
ECPS
ECIN
ELTN
EAID
EMIN
EWWT
EFIS
EIND
EC
ES
EN
EI
ENVR
ENGR
ENIV
EUNCH
ENVI
ETRDEINVECINPGOVCS
ELN
EZ
EXTERNAL
EINVECONSENVCSJA
EINT
EUR
ECINECONCS
ENNP
EFINECONCS
EK
ELECTIONS
ECUN
EINVEFIN
ECIP
EINDETRD
EUC
EREL
ECA
ENERG
ENGY
ETRO
EFTA
ECONCS
ECONOMICS
ECONEFIN
EINVETC
EINN
ESA
ETC
ETRDEINVTINTCS
ESENV
ETRDECONWTOCS
IN
IC
IR
IZ
IS
IAEA
IT
ICTY
IO
IA
IWC
ID
ICRC
ILC
INTELSAT
IMO
ISRAELI
IACI
ILO
ITRA
IBRD
IMF
ICJ
ICAO
ITALY
ITALIAN
IRAQI
INTERPOL
IV
IQ
IPR
INRB
ITPHUM
IIP
IL
INR
ITPGOV
IZPREL
IRC
INRA
INRO
IRAJ
IEFIN
IF
KDEM
KCRM
KJUS
KTIA
KWBG
KPAL
KIPR
KTIP
KE
KNNP
KGHG
KICC
KV
KTFN
KU
KCFE
KDRG
KWMN
KSCA
KGIC
KCOR
KFRD
KPKO
KSUM
KPRP
KPAO
KBCT
KIRF
KCFC
KISL
KREC
KSPR
KHIV
KBIO
KMCA
KMPI
KFLU
KSTH
KBTR
KS
KOMC
KOMS
KSEP
KPRV
KFLO
KHLS
KN
KWWMN
KUNR
KLIG
KSTC
KZ
KG
KRAD
KOLY
KTBT
KTDB
KOCI
KAWK
KCIP
KNPP
KWAC
KMDR
KAWC
KIDE
KSAF
KX
KWMNCS
KNEI
KCRS
KVPR
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KACT
KO
KFSC
KR
KPWR
KMIG
KSEC
KIFR
KDEMAF
KFIN
KGCC
KPIN
KPLS
KIRC
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KGIT
KBTS
KERG
KWMM
KRVC
KNSD
KVIR
KNUP
KTER
KDDG
KHSA
KMRS
KHDP
KTLA
KPAK
KNAR
KREL
KPAI
KTEX
KCOM
KNNPMNUC
KPOA
KRFD
KHUM
KDEV
KNUC
MOPS
MARR
MASS
MNUC
MO
MX
MCAP
ML
MTCRE
MR
MP
MY
MU
MIL
MAR
MC
MRCRE
MTRE
MA
MEPI
MV
MPOS
MD
MZ
MEPP
MOPPS
MAPP
MASC
MT
MERCOSUR
MK
MDC
MI
MAPS
MCC
MASSMNUC
MQADHAFI
MUCN
MTCR
MG
OREP
OVIP
OFDP
ODIP
OPDC
OAS
OTRA
OSCE
OECD
OIIP
OEXC
OPCW
OPIC
OPRC
OVP
OSCI
OTR
OSAC
OIC
OFFICIALS
OIE
PHUM
PREL
PGOV
PREF
PTER
PARM
PBTS
PINR
PINS
PHSA
PK
POL
PM
PINT
PE
PINF
PEL
PA
PARMS
PO
PLN
PROP
PALESTINIAN
PAO
PL
POV
PG
POLITICS
PEPR
PSI
PSOE
PU
POLITICAL
PARTIES
PBIO
PECON
PAK
POGOV
PINL
PKFK
PMIL
PY
PFOR
PHALANAGE
PARTY
PRAM
PMAR
PGOVLO
PUNE
PORG
PHUMPREL
PF
POLINT
PHUS
PGOC
PNR
PGGV
PNAT
PGOVE
PRGOV
PRL
PROV
PTERE
PGOF
PHUMBA
SENV
SY
SZ
SOCI
SO
SR
SNAR
SA
SP
SW
SMIG
SU
SCUL
SC
SAN
SN
SL
SG
SYR
SEVN
SF
SI
STEINBERG
SIPRS
SH
SNARCS
SOFA
SANC
SHUM
SK
ST
TRGY
TU
TBIO
TH
TS
TSPL
TT
TPHY
TSPA
TI
TK
TIP
TERRORISM
TZ
TX
TW
TD
TP
TC
TO
TNGD
TINT
TRSY
TR
TFIN
TURKEY
UK
UNGA
UN
UNHRC
UNMIK
UNO
UZ
UNSC
UP
UG
UNHCR
UNDC
US
UNAUS
USTR
UV
UNEP
UY
UNESCO
USUN
UAE
USEU
UNDP
UNCHS
UNVIE
UNCHC
UE
UNDESCO
USAID
Browse by classification
Community resources
courage is contagious
Viewing cable 09CAIRO209, POWER TRIP: RESTRUCTURING THE PETROLEUM
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09CAIRO209.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09CAIRO209 | 2009-02-05 13:01 | 2011-02-16 21:09 | CONFIDENTIAL | Embassy Cairo |
VZCZCXRO3772
PP RUEHDE
DE RUEHEG #0209/01 0361301
ZNY CCCCC ZZH
P 051301Z FEB 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC PRIORITY 1554
INFO RHEBAAA/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUEHHH/OPEC COLLECTIVE
C O N F I D E N T I A L SECTION 01 OF 02 CAIRO 000209
SIPDIS
NEA/ELA FOR SCHALL
DOE FOR ERICKSON AND SPERLE
E.O. 12958: DECL: 02/02/2019
TAGS: ENRG EPET PREL EG
SUBJECT: POWER TRIP: RESTRUCTURING THE PETROLEUM
BUREAUCRACY IN EGYPT
...
REF: 2008 CAIRO 959 Classified By: MINISTER COUNSELOR FOR ECONOMIC AND POLITICAL AFFAIRS WI LLIAM R. STEWART
1.(C) SUMMARY: The Egyptian General Petroleum Corporation (EGPC), a parastatal company under the authority of the Ministry of Petroleum (MoP), controls every facet of the oil business in Egypt, from upstream exploration and production, to midstream refining and downstream marketing and retail sales. Independent newspaper Al Masry Al Yom reported in late January that EGPC's Board of Directors approved a plan to restructure EGPC and set up an independent regulatory authority for petroleum and natural gas. Denying that a major reorganization was in the works, EGPC Chairman Abdel Alim Taha told econoff on February 2 that Minister of Petroleum Sameh Fahmy was considering a "few changes" to EGPC, and that discussions were in a very early phase. Ibrahim Saleh, Senior Advisor at the Ministry of Finance, confirmed to us February 5 that EGPC's board approved a limited reorganization plan but did not mention whether an independent regulator was included.
2.(C) Summary Continued: Oil and gas sector reform has been a priority for Prime Minister Nazif since the autumn 2007 National Democratic Party (NDP) conference. Nazif appointed several key economic reformers to EGPC's board to facilitate transparency, including Finance Minister Yousef Boutros-Ghali and Investment Minister Mohamed Mohieldin, but there has been little tangible change. Energy sector contacts believe that there is a kernel of truth to the news report and that a major shake-up at EGPC is inevitable. U.S. oil and gas producers Apache and El Paso report that EGPC is in arrears in its payments to all producers by almost 150 days. END SUMMARY.
ΒΆ3. (U) The Ministry of Petroleum (MoP) oversees three holding companies that manage all elements of the oil and gas business and form joint ventures with international partners: the Egyptian Holding Company for Natural Gas (EGAS), the Egyptian Holding Company for Petrochemicals (ECHEM) and the Egyptian General Petroleum Company (EGPC). EGPC sets prices and controls the oil business in Egypt, from upstream exploration and production, to midstream refining and downstream marketing and retail sales. Prime Minister Ahmed Nazif and NDP Policies Committee head Gamal Mubarak introduced an ambitious plan to reform the oil and gas sector at the NDP party conference in 2007, proposing the establishment of an independent regulatory agency. ------------------------------------------ EGPC: BLACK HOLE FOR INFORMATION AND MONEY ------------------------------------------
4.(C) MoP's financial opacity was a key factor behind the NDP leadership's push for reform: oil and gas revenues go directly to EGPC and aren't incorporated into the Egyptian treasury. Nazif appointed several key economic reformers to EGPC's board of directors, including Finance Minister Yousef Boutros-Ghali and Investment Minister Mohamed Mohieldin, to encourage transparency in accounting and planning and greater coordination between Petroleum Minister Fahmy and the rest of the cabinet. Boutros-Ghali made two moves in 2008 to shed light on EGPC's financial situation and assert a measure of control, by bringing in former EGPC Chairman Ibrahim Saleh as a special advisor on energy sector finance and imposing a small excise tax on gasoline in May 2008, to help pay for a salary hike for public sector workers (reftel). According to Khaled AbuBakr, managing director of TAQA Arabia and chair of the American Chamber of Commerce in Cairo's Energy Committee, Gamal Mubarak and the economic ministers have failed to gain acceptance for their reform agenda within EGPC. AbuBakr lamented that the NDP's key reformers appear to have given up the fight by failing to attend EGPC board meetings.
5.(C) Oil and gas producers Apache (the largest U.S. investor in Egypt) and El Paso told us recently that EGPC is in arrears to international producers by 150 days, and estimate that EGPC owes all international producers in Egypt just over $2 billion. (NOTE: EGPC usually pays oil producers 30 days following the month of production, and natural gas producers 45 days after receipt of gas invoice. END NOTE.) Apache contacts note that falling oil prices since fall 2008 have depressed Egypt's revenues but that this situation is unprecedented and may lead the company to contract its exploration and development activities by the second quarter of 2009 if it remains unresolved. CAIRO 00000209 002 OF 002 ----------------------------------------- POSSIBLE OUTLINE OF A RESTRUCTURING PLAN -----------------------------------------
6.(C) Independent Egyptian newspaper Al Masry Al Yom reported January 27 that EGPC's board of directors, minus "prominent ministers or their representatives," approved a proposal to reorganize EGPC, liberalize the distribution side, and set up an independent regulatory agency for oil and natural gas, reporting to the Prime Minister. EGPC Chairman Abdel Alim Taha told econoff on February 2 that Minister Fahmy was considering a "few changes" but noted that discussions were in preliminary stages within the ministry. He denied that a major reorganization was in the works. MoF advisor Ibrahim Saleh confirmed to us February 5 that EGPC's board had approved Minister Fahmy's plan to create separate holding companies for refining and distribution, but did not mention whether an independent regulatory agency was part of the plan. Saleh stated that he and other representatives of economic ministries were not present to vote on the plan, and would not comment on whether Fahmy's proposal was in line with the PM's agenda for energy sector reform.
7.(SBU) Industry contacts assert that restructuring at EGPC is inevitable and believe that Al Masry Al Youm's report was at least partly accurate. Tom Walter, the director of ExxonMobil Egypt, suggests that the likeliest scenario would split EGPC in three between exploration and production activities, refining, and marketing and sales. They believe that this will allow the GOE to have greater visibility into oil and gas revenues and would eventually start to open up the refining and distribution sides to the private sector. Right now, over 80 percent of Egypt's refining capacity is owned by the government. Just over 60 percent of retail sales of gasoline are controlled by two parastatal companies.
8.(C) COMMENT: According to the IMF, oil-related revenue comprised 57 billion Egyptian pounds ($10.2 billion) or 6.4 percent of GDP in FY2007/2008. Cash flow problems have resulted in delayed payments to producers in the past, but the current delay of 150 days is unprecedented. While the GOE is taking steps to restructure its petroleum bureaucracy, it is not clear to us how quickly this will happen or whether this will result in faster payments to producers. Just as troubling is the continuing dissonance between the economic ministries and MoP over the management of hydrocarbons in Egypt. SCOBEY