Identifier
Created
Classification
Origin
07ASHGABAT1311
2007-12-03 08:43:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: ENI PURCHASES ONSHORE OIL COMPANY
how-toVZCZCXRO1803 PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ RUEHPW RUEHROV RUEHVK RUEHYG DE RUEHAH #1311 3370843 ZNR UUUUU ZZH P 030843Z DEC 07 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC PRIORITY 9823 INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY RUCNCIS/CIS COLLECTIVE PRIORITY RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY RUEHAK/AMEMBASSY ANKARA PRIORITY 3077 RUEHBJ/AMEMBASSY BEIJING PRIORITY 0892 RUEHKO/AMEMBASSY TOKYO PRIORITY 0766 RUEHIT/AMCONSUL ISTANBUL PRIORITY 1342 RHMFIUU/CDR USCENTCOM MACDILL AFB FL PRIORITY RUEAIIA/CIA WASHDC PRIORITY RHEFDIA/DIA WASHDC PRIORITY RUEKJCS/JOINT STAFF WASHDC PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY RHEHNSC/NSC WASHDC PRIORITY RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
UNCLAS ASHGABAT 001311
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN AND EEB; STATE PLEASE PASS TO USTDA DAN
STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: N/A
TAGS: PREL EPET ECON TX
SUBJECT: TURKMENISTAN: ENI PURCHASES ONSHORE OIL COMPANY
BURREN ENERGY
UNCLAS ASHGABAT 001311
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN AND EEB; STATE PLEASE PASS TO USTDA DAN
STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: N/A
TAGS: PREL EPET ECON TX
SUBJECT: TURKMENISTAN: ENI PURCHASES ONSHORE OIL COMPANY
BURREN ENERGY
1. (U) Sensitive but unclassified. Not for public Internet.
2. (U) Burren Energy, a second-tier hydrocarbon company
registered in the UK that is the holder of one of the the few
onshore production sharing agreements (PSAs) in Turkmenistan,
has just been sold to the Italian-based hydrocarbon firm,
Eni. Eni reportedly purchased Burren for $3.6 billion in an
all-cash deal, following months of Eni efforts to find an
offer attractive enough for Burren to take the bait. The
deal will give Eni a foothold in Turkmenistan, where Burren
has increased its gross production levels by 17% in the first
half of 2007 to 21,800 barrels of oil per day. According to
press reports, Eni Chief Executive Paolo Scaroni said that
Burren's presence in Turkmenistan will offer Eni "an
interesting entry into a new market" that is still largely
unexplored. Scaroni also reportedly suggested that Eni could
team up with Gazprom, with which Eni has a longstanding
relationship, to develop Burren's assets in Turkmenistan,
though he did not specify what he has in mind.
3. (SBU) COMMENT: Burren's PSA block, located just south of
the provincial capital of Balkanabat, has been doing well,
and Burren has been steadily increasing its production of oil
-- and its shares price on the London stock exchange. While
it is not clear whether Eni has any other motive in mind in
purchasing Burren than acquiring a solid company with proven
production levels (post would be interested in hearing more
from Moscow and Rome about Eni's relationship with Gazprom in
moving forward on the South Stream project),it has
aggressively been pursuing Burren Energy since 2006. We note
from press reports that Eni and Burren also both have
drilling operations in Congo, and the acquisition of the
facility in Turkmenistan might have been incidental. In any
case, however, this deal locks in a new player with --
possibly -- a new agenda.
CURRAN
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN AND EEB; STATE PLEASE PASS TO USTDA DAN
STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: N/A
TAGS: PREL EPET ECON TX
SUBJECT: TURKMENISTAN: ENI PURCHASES ONSHORE OIL COMPANY
BURREN ENERGY
1. (U) Sensitive but unclassified. Not for public Internet.
2. (U) Burren Energy, a second-tier hydrocarbon company
registered in the UK that is the holder of one of the the few
onshore production sharing agreements (PSAs) in Turkmenistan,
has just been sold to the Italian-based hydrocarbon firm,
Eni. Eni reportedly purchased Burren for $3.6 billion in an
all-cash deal, following months of Eni efforts to find an
offer attractive enough for Burren to take the bait. The
deal will give Eni a foothold in Turkmenistan, where Burren
has increased its gross production levels by 17% in the first
half of 2007 to 21,800 barrels of oil per day. According to
press reports, Eni Chief Executive Paolo Scaroni said that
Burren's presence in Turkmenistan will offer Eni "an
interesting entry into a new market" that is still largely
unexplored. Scaroni also reportedly suggested that Eni could
team up with Gazprom, with which Eni has a longstanding
relationship, to develop Burren's assets in Turkmenistan,
though he did not specify what he has in mind.
3. (SBU) COMMENT: Burren's PSA block, located just south of
the provincial capital of Balkanabat, has been doing well,
and Burren has been steadily increasing its production of oil
-- and its shares price on the London stock exchange. While
it is not clear whether Eni has any other motive in mind in
purchasing Burren than acquiring a solid company with proven
production levels (post would be interested in hearing more
from Moscow and Rome about Eni's relationship with Gazprom in
moving forward on the South Stream project),it has
aggressively been pursuing Burren Energy since 2006. We note
from press reports that Eni and Burren also both have
drilling operations in Congo, and the acquisition of the
facility in Turkmenistan might have been incidental. In any
case, however, this deal locks in a new player with --
possibly -- a new agenda.
CURRAN