Identifier
Created
Classification
Origin
07ASHGABAT997
2007-09-21 12:02:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: CONOCO-PHILLIPS TESTING THE WATERS
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UNCLAS ASHGABAT 000997
SIPDIS
SIPDIS
SENSITIVE
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
E.O. 12958: N/A
TAGS: PGOV PREL ENERG EPET TX
SUBJECT: TURKMENISTAN: CONOCO-PHILLIPS TESTING THE WATERS
UNCLAS ASHGABAT 000997
SIPDIS
SIPDIS
SENSITIVE
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
E.O. 12958: N/A
TAGS: PGOV PREL ENERG EPET TX
SUBJECT: TURKMENISTAN: CONOCO-PHILLIPS TESTING THE WATERS
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) Conoco-Phillips is looking at the feasibility of opening an
office in Ashgabat, the company's General Counsel for Upstream
Finance, Chuck Ferree, told Pol/Econ Chief on September 19. Ferree
said he was doing research into the requirements for opening an
office, as well as on tax, legal, accounting and other requirements,
in addition to the practical aspects of doing business. While in
Ashgabat he hoped to look for local contacts for assistance on
computing, telecommunications, locating office space,
transportation, translation services, etc. So far, he had not found
anything suitable.
3. (SBU) Ferree said that Conoco-Phillips would open an office only
if it gets a deal. Currently, the company is negotiating with the
Turkmen government to explore offshore and, in combination with
Lukoil, has bids on three blocks in the Caspian - 18, 20, and 21.
Ferree was not doing any negotiating on this trip.
4. (SBU) Ferree revealed that the company has run into some early
problems in setting up an office. In order to get a local mailbox
(a prerequisite),there has to be a local representative, who then
registers with the tax authorities and other ministries. The first
person the company identified, Ferree said, was not acceptable to
the Turkmenistan government. (NOTE: Ferree did not say who the
person was or why the government rejected him. END NOTE.)
5. (SBU) COMMENT: Businesses active here tell us that, despite the
president's stated interest in attracting more foreign investment,
the registration process remains complicated and encumbered by
excessive bureaucratism. Conoco became active here in Turkmenistan
much later than many of its competitors, and as a result, is much
further behind the curve than Chevron, which has been much more
aggressive in setting up shop here. It may take a long time for
Conoco to locate suitable office space, although the Turkish company
Yimpas has just completed an office building, which may be
appropriate. Post will continue to work with U.S. businesses in
hopes that a larger western business presence will lead, over time,
to improved conditions for all.
CURRAN
SIPDIS
SIPDIS
SENSITIVE
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
E.O. 12958: N/A
TAGS: PGOV PREL ENERG EPET TX
SUBJECT: TURKMENISTAN: CONOCO-PHILLIPS TESTING THE WATERS
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) Conoco-Phillips is looking at the feasibility of opening an
office in Ashgabat, the company's General Counsel for Upstream
Finance, Chuck Ferree, told Pol/Econ Chief on September 19. Ferree
said he was doing research into the requirements for opening an
office, as well as on tax, legal, accounting and other requirements,
in addition to the practical aspects of doing business. While in
Ashgabat he hoped to look for local contacts for assistance on
computing, telecommunications, locating office space,
transportation, translation services, etc. So far, he had not found
anything suitable.
3. (SBU) Ferree said that Conoco-Phillips would open an office only
if it gets a deal. Currently, the company is negotiating with the
Turkmen government to explore offshore and, in combination with
Lukoil, has bids on three blocks in the Caspian - 18, 20, and 21.
Ferree was not doing any negotiating on this trip.
4. (SBU) Ferree revealed that the company has run into some early
problems in setting up an office. In order to get a local mailbox
(a prerequisite),there has to be a local representative, who then
registers with the tax authorities and other ministries. The first
person the company identified, Ferree said, was not acceptable to
the Turkmenistan government. (NOTE: Ferree did not say who the
person was or why the government rejected him. END NOTE.)
5. (SBU) COMMENT: Businesses active here tell us that, despite the
president's stated interest in attracting more foreign investment,
the registration process remains complicated and encumbered by
excessive bureaucratism. Conoco became active here in Turkmenistan
much later than many of its competitors, and as a result, is much
further behind the curve than Chevron, which has been much more
aggressive in setting up shop here. It may take a long time for
Conoco to locate suitable office space, although the Turkish company
Yimpas has just completed an office building, which may be
appropriate. Post will continue to work with U.S. businesses in
hopes that a larger western business presence will lead, over time,
to improved conditions for all.
CURRAN