Identifier
Created
Classification
Origin
07ASHGABAT598
2007-06-15 13:37:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
SCA PDAS MANN MEETS WITH BRIDAS CEO DURING VISIT
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C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 000598
SIPDIS
SIPDIS
DEPT FOR SCA/CEN (NICOLAIDIS)
E.O. 12958: DECL: 06/14/2017
TAGS: PREL EPET AR TX
SUBJECT: SCA PDAS MANN MEETS WITH BRIDAS CEO DURING VISIT
TO ASHGABAT
Classified By: Charge d'Affaires, a.i. Jennifer L. Brush for reasons
C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 000598
SIPDIS
SIPDIS
DEPT FOR SCA/CEN (NICOLAIDIS)
E.O. 12958: DECL: 06/14/2017
TAGS: PREL EPET AR TX
SUBJECT: SCA PDAS MANN MEETS WITH BRIDAS CEO DURING VISIT
TO ASHGABAT
Classified By: Charge d'Affaires, a.i. Jennifer L. Brush for reasons 1.
4 (B) and (D).
Summary
--------------
1. (C) During a May 31 meeting, the CEO of Argentine energy
firm Bridas, Carlos Bulgheroni, told SCA PDAS Steven Mann
that he was nearing resolution on a deal to recover the $1
billion in arbitration awards owed his company by the
Government of Turkmenistan for nationalization of Brida's
Turkmenistan gas fields. Specifically, Bulgheroni hopes to
gain agreement to receive Turkmenistan's share of gas from
Bridas' former fields, now controlled by the Chinese National
Petroleum Corporation (CNPC),which Bridas would then
monetize by selling either to the north or east. Bulgheroni
urged the United States to promote an alternative
Turkmenistan-to-China pipeline in Beijing and to push
Turkmenistan to reach agreement with Bridas. End Summary.
A New Deal for Bridas?
--------------
2. (C) In the course of his visit to Turkmenistan, SCA PDAS
Steven Mann met on May 31 with Carlos Bulgheroni, CEO of
Argentine energy firm, BRIDAS. Bulgheroni has returned to
Ashgabat on a number of occasions to pursue issues related to
the expropriation of BRIDAS' Turkmenistan gas fields. BRIDAS
holds legally-binding arbitration awards against the
Government of Turkmenistan in amounts exceeding USD one
billion. Turkmenistan offered years before to settle the
dispute with in-kind gas, but BRIDAS has been unable to
persuade Gazprom to transit the gas.
3. (C) Bulgheroni is now trying to work a deal with
Turkmenistan's new government and with CNPC, which has taken
over the operation of the BRIDAS fields. He is promoting a
solution through which Turkmenistan will pay off BRIDAS in
gas provided by CNPC, i.e. from Turkmenistan's share of those
fields' production. BRIDAS will then monetize the gas by
selling either to the north or the east. Toward this end,
Bulgheroni is working the issues in Beijing and Ashgabat and
is encouraging the development of a Turkmenistan-to-China
pipeline.
4. (C) He had just arrived in Ashgabat from Beijing, where he
met with a range of Chinese officials and CNPC. He believes
he is making progress with his Chinese interlocutors,
although the details of the arbitration issues are "above
CNPC's head." He believed his Beijing talks narrowed the
difference in the price of gas and that the parties will
solve the issues in one to one-and-half months.
5. (C) He met in Ashgabat with President Berdimuhammedov and
he believed he is close to an agreement with the Government
of Turkmenistan, but "they keep needing to be pushed." He
urged the United States to be more active with the Chinese to
promote an alternative pipeline and urged Mann to travel to
Beijing to underscore U.S. support for such a line.
Bulgheroni identified the following individuals as the key
players on these issues: Zeng Qinghong, VP PRC; Zang Peiyan,
Vice Premier; Zhou Youngkang, State Councilor; and Tang
Jiaxuan, State Councilor.
6. (C) Bulgheroni plans to return to Ashgabat in mid-June.
He has been involved in Turkmenistan since the early 1990's
***********************
* Missing Section 002 *
***********************
SIPDIS
SIPDIS
DEPT FOR SCA/CEN (NICOLAIDIS)
E.O. 12958: DECL: 06/14/2017
TAGS: PREL EPET AR TX
SUBJECT: SCA PDAS MANN MEETS WITH BRIDAS CEO DURING VISIT
TO ASHGABAT
Classified By: Charge d'Affaires, a.i. Jennifer L. Brush for reasons 1.
4 (B) and (D).
Summary
--------------
1. (C) During a May 31 meeting, the CEO of Argentine energy
firm Bridas, Carlos Bulgheroni, told SCA PDAS Steven Mann
that he was nearing resolution on a deal to recover the $1
billion in arbitration awards owed his company by the
Government of Turkmenistan for nationalization of Brida's
Turkmenistan gas fields. Specifically, Bulgheroni hopes to
gain agreement to receive Turkmenistan's share of gas from
Bridas' former fields, now controlled by the Chinese National
Petroleum Corporation (CNPC),which Bridas would then
monetize by selling either to the north or east. Bulgheroni
urged the United States to promote an alternative
Turkmenistan-to-China pipeline in Beijing and to push
Turkmenistan to reach agreement with Bridas. End Summary.
A New Deal for Bridas?
--------------
2. (C) In the course of his visit to Turkmenistan, SCA PDAS
Steven Mann met on May 31 with Carlos Bulgheroni, CEO of
Argentine energy firm, BRIDAS. Bulgheroni has returned to
Ashgabat on a number of occasions to pursue issues related to
the expropriation of BRIDAS' Turkmenistan gas fields. BRIDAS
holds legally-binding arbitration awards against the
Government of Turkmenistan in amounts exceeding USD one
billion. Turkmenistan offered years before to settle the
dispute with in-kind gas, but BRIDAS has been unable to
persuade Gazprom to transit the gas.
3. (C) Bulgheroni is now trying to work a deal with
Turkmenistan's new government and with CNPC, which has taken
over the operation of the BRIDAS fields. He is promoting a
solution through which Turkmenistan will pay off BRIDAS in
gas provided by CNPC, i.e. from Turkmenistan's share of those
fields' production. BRIDAS will then monetize the gas by
selling either to the north or the east. Toward this end,
Bulgheroni is working the issues in Beijing and Ashgabat and
is encouraging the development of a Turkmenistan-to-China
pipeline.
4. (C) He had just arrived in Ashgabat from Beijing, where he
met with a range of Chinese officials and CNPC. He believes
he is making progress with his Chinese interlocutors,
although the details of the arbitration issues are "above
CNPC's head." He believed his Beijing talks narrowed the
difference in the price of gas and that the parties will
solve the issues in one to one-and-half months.
5. (C) He met in Ashgabat with President Berdimuhammedov and
he believed he is close to an agreement with the Government
of Turkmenistan, but "they keep needing to be pushed." He
urged the United States to be more active with the Chinese to
promote an alternative pipeline and urged Mann to travel to
Beijing to underscore U.S. support for such a line.
Bulgheroni identified the following individuals as the key
players on these issues: Zeng Qinghong, VP PRC; Zang Peiyan,
Vice Premier; Zhou Youngkang, State Councilor; and Tang
Jiaxuan, State Councilor.
6. (C) Bulgheroni plans to return to Ashgabat in mid-June.
He has been involved in Turkmenistan since the early 1990's
***********************
* Missing Section 002 *
***********************