Identifier
Created
Classification
Origin
07ASHGABAT1283
2007-11-26 13:57:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN INTERNATIONAL OIL AND GAS EXHIBITION AND
how-toVZCZCXRO5413 PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ RUEHPW RUEHROV RUEHVK RUEHYG DE RUEHAH #1283/01 3301357 ZNR UUUUU ZZH P 261357Z NOV 07 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC PRIORITY 9770 INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY RUCNCIS/CIS COLLECTIVE PRIORITY RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY RUEHAK/AMEMBASSY ANKARA PRIORITY 3032 RUEHBJ/AMEMBASSY BEIJING PRIORITY 0848 RUEHKO/AMEMBASSY TOKYO PRIORITY 0722 RUEHIT/AMCONSUL ISTANBUL PRIORITY 1298 RUEKJCS/JOINT STAFF WASHDC PRIORITY RHMFIUU/CDR USCENTCOM MACDILL AFB FL PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY RUEAIIA/CIA WASHDC PRIORITY RHEHNSC/NSC WASHDC PRIORITY RHEFDIA/DIA WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
UNCLAS SECTION 01 OF 02 ASHGABAT 001283
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EUR/RUS, EEB
STATE PLEASE PASS TO USTDA DAN STEIN
COMMERCE FOR HUEPER
ENERGY FOR EKIMOFF/THOMPSON
E.O. 12958: N/A
TAGS: PREL PGOV ENERG EPET TX
SUBJECT: TURKMENISTAN INTERNATIONAL OIL AND GAS EXHIBITION AND
CONFERENCE (TIOGE-2007): MANY CAME BUT NO SURPRISES
REFTELS: A) ASHGABAT 1256, B) ASHGABAT 1260
UNCLAS SECTION 01 OF 02 ASHGABAT 001283
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EUR/RUS, EEB
STATE PLEASE PASS TO USTDA DAN STEIN
COMMERCE FOR HUEPER
ENERGY FOR EKIMOFF/THOMPSON
E.O. 12958: N/A
TAGS: PREL PGOV ENERG EPET TX
SUBJECT: TURKMENISTAN INTERNATIONAL OIL AND GAS EXHIBITION AND
CONFERENCE (TIOGE-2007): MANY CAME BUT NO SURPRISES
REFTELS: A) ASHGABAT 1256, B) ASHGABAT 1260
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: This year's Turkmenistan International Oil and
Gas Exhibition (TIOGE) and conference had the highest attendance
since 2000 and attracted unprecedented interest from major petroleum
companies, regional stakeholders and press. However, TIOGE-2007 did
not bring any surprises or breakthroughs. If the government really
is interested in attracting foreign companies, it will have to
abandon a number of policies, including its unwillingness to sign
onshore product sharing agreements (PSAs),inflexibility on
discussing Trans-Caspian pipeline options prior to delimitation of
its border with Azerbaijan, and Turkmenistan's adherence to a policy
of selling gas at the border. END SUMMARY.
PARTICIPANTS
3. (U) According to the conference organizer -- ITE, UK -- the TIOGE
conference is one of the fastest growing in the company's portfolio
of eight such events in various CIS countries. With over 650
delegates and 60 speakers, the TIOGE-2007 Coference was highly
oversubscribed, causing logistical problems for organizers who
simply could not provide hotel accommodation for all guests.
Exhibitors included more than 150 foreign companies from 21
countries. U.S. companies exhibiting at TIOGE included Cudd Energy
Services, Cameron Cooper, Chevron, BP, Bertling Logistics, Midland
Oil and Gas, Gateway and Oilwell Varco. Other main exhibitors were
Gazprom and Lukoil of Russia, Naftogaz of Ukraine and Petronas, from
Malaysia.
4. (U) Although Chevron and BP exhibited and presented at the
conference, others, including ExxonMobil, ConocoPhillips, Shell and
even SOCAR (State Oil Company of Azerbaijan) visited to establish or
renew contacts with Turkmenistan's petroleum officials. U.S.
Secretary of Energy Samuel Bodman (reftels) and EU Energy
SIPDIS
Commissioner Andris Piebalgs came to Ashgabat for the first time in
several years.
"GENERALLY BLAND PRESENTATIONS..."
5. (SBU) As a former General Manager of a western company who is now
an independent consultant put it, the conference featured "generally
bland presentations with a few exceptions." The exceptions were the
speeches by BP, Chevron and EU Energy Commissioner Piebalgs. What
made these presentations stand out, according to several
individuals, is the fact that they addressed issues related to real
alternative pipeline routes from Turkmenistan.
6. (SBU) Turkmenistan government officials delivered very short and
traditionally dull speeches with no tangible content that would be
useful for potential and current investor. Even Executive Director
of the State Agency for Management and Use of Hydrocarbon Resources
Bayrammyrat Myradov's presentation was very general, citing the 2030
Oil and Gas Development Plan and reviewing financial elements of
standard PSAs and basic applicable laws.
7. (U) Turkmenistan's traditional partners active in Turkmenistan --
Petronas, Burren, Dragon Oil and Mitro (Hazar Consortium) -- were
extremely cautious and general in their presentations. Petronas
avoided even talking about the status of its current operations, let
alone plans to export its gas. Gazprom proposed to build a joint
gas production platform in the Caspian and a petrochemicals facility
in Turkmenbashy to export refined products by tanker via the
Volga-Don canal.
BURREN READY TO SELL ITS ASSETS IN TURKMENISTAN
8. (SBU) Chris Gupta, General Manager of Burren Energy, UK confirmed
that his company is ready to sell its assets in Turkmenistan "if the
ASHGABAT 00001283 002 OF 002
price is right." He also confirmed that the $3 billion offered by
ENI is not adequate. Gupta did not offer any explanation for
Burren's desire to divest.
9. (SBU) COMMENT: Turkmenistan continues to state publicly that it
wants a multi-route petroleum export policy. Not wanting to
emphasize directly a trans-Caspian option, the government may
nonetheless have used the presence of SOCAR and the presentations of
BP and Chevron to help keep a trans-Caspian pipeline on the table.
However, Turkmenistan's future actions will demonstrate whether it
is serious about increased, diversified foreign involvement in the
country's oil and gas sector. If the leadership really is
interested in attracting foreign companies, it will have to abandon
a number of policies, including its unwillingness to sign onshore
product sharing agreements (PSAs),inflexibility on discussing
Trans-Caspian pipeline options prior to delimitation of its border
with Azerbaijan, and Turkmenistan's adherence to a policy of selling
gas at the border. END COMMENT.
CURRAN
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EUR/RUS, EEB
STATE PLEASE PASS TO USTDA DAN STEIN
COMMERCE FOR HUEPER
ENERGY FOR EKIMOFF/THOMPSON
E.O. 12958: N/A
TAGS: PREL PGOV ENERG EPET TX
SUBJECT: TURKMENISTAN INTERNATIONAL OIL AND GAS EXHIBITION AND
CONFERENCE (TIOGE-2007): MANY CAME BUT NO SURPRISES
REFTELS: A) ASHGABAT 1256, B) ASHGABAT 1260
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: This year's Turkmenistan International Oil and
Gas Exhibition (TIOGE) and conference had the highest attendance
since 2000 and attracted unprecedented interest from major petroleum
companies, regional stakeholders and press. However, TIOGE-2007 did
not bring any surprises or breakthroughs. If the government really
is interested in attracting foreign companies, it will have to
abandon a number of policies, including its unwillingness to sign
onshore product sharing agreements (PSAs),inflexibility on
discussing Trans-Caspian pipeline options prior to delimitation of
its border with Azerbaijan, and Turkmenistan's adherence to a policy
of selling gas at the border. END SUMMARY.
PARTICIPANTS
3. (U) According to the conference organizer -- ITE, UK -- the TIOGE
conference is one of the fastest growing in the company's portfolio
of eight such events in various CIS countries. With over 650
delegates and 60 speakers, the TIOGE-2007 Coference was highly
oversubscribed, causing logistical problems for organizers who
simply could not provide hotel accommodation for all guests.
Exhibitors included more than 150 foreign companies from 21
countries. U.S. companies exhibiting at TIOGE included Cudd Energy
Services, Cameron Cooper, Chevron, BP, Bertling Logistics, Midland
Oil and Gas, Gateway and Oilwell Varco. Other main exhibitors were
Gazprom and Lukoil of Russia, Naftogaz of Ukraine and Petronas, from
Malaysia.
4. (U) Although Chevron and BP exhibited and presented at the
conference, others, including ExxonMobil, ConocoPhillips, Shell and
even SOCAR (State Oil Company of Azerbaijan) visited to establish or
renew contacts with Turkmenistan's petroleum officials. U.S.
Secretary of Energy Samuel Bodman (reftels) and EU Energy
SIPDIS
Commissioner Andris Piebalgs came to Ashgabat for the first time in
several years.
"GENERALLY BLAND PRESENTATIONS..."
5. (SBU) As a former General Manager of a western company who is now
an independent consultant put it, the conference featured "generally
bland presentations with a few exceptions." The exceptions were the
speeches by BP, Chevron and EU Energy Commissioner Piebalgs. What
made these presentations stand out, according to several
individuals, is the fact that they addressed issues related to real
alternative pipeline routes from Turkmenistan.
6. (SBU) Turkmenistan government officials delivered very short and
traditionally dull speeches with no tangible content that would be
useful for potential and current investor. Even Executive Director
of the State Agency for Management and Use of Hydrocarbon Resources
Bayrammyrat Myradov's presentation was very general, citing the 2030
Oil and Gas Development Plan and reviewing financial elements of
standard PSAs and basic applicable laws.
7. (U) Turkmenistan's traditional partners active in Turkmenistan --
Petronas, Burren, Dragon Oil and Mitro (Hazar Consortium) -- were
extremely cautious and general in their presentations. Petronas
avoided even talking about the status of its current operations, let
alone plans to export its gas. Gazprom proposed to build a joint
gas production platform in the Caspian and a petrochemicals facility
in Turkmenbashy to export refined products by tanker via the
Volga-Don canal.
BURREN READY TO SELL ITS ASSETS IN TURKMENISTAN
8. (SBU) Chris Gupta, General Manager of Burren Energy, UK confirmed
that his company is ready to sell its assets in Turkmenistan "if the
ASHGABAT 00001283 002 OF 002
price is right." He also confirmed that the $3 billion offered by
ENI is not adequate. Gupta did not offer any explanation for
Burren's desire to divest.
9. (SBU) COMMENT: Turkmenistan continues to state publicly that it
wants a multi-route petroleum export policy. Not wanting to
emphasize directly a trans-Caspian option, the government may
nonetheless have used the presence of SOCAR and the presentations of
BP and Chevron to help keep a trans-Caspian pipeline on the table.
However, Turkmenistan's future actions will demonstrate whether it
is serious about increased, diversified foreign involvement in the
country's oil and gas sector. If the leadership really is
interested in attracting foreign companies, it will have to abandon
a number of policies, including its unwillingness to sign onshore
product sharing agreements (PSAs),inflexibility on discussing
Trans-Caspian pipeline options prior to delimitation of its border
with Azerbaijan, and Turkmenistan's adherence to a policy of selling
gas at the border. END COMMENT.
CURRAN