TURKISH PETROLEUM CONFERENCE TARGETS UPSTREAM INVESTMENT IN

UNCLAS ANKARA 001754 SENSITIVE SIPDIS EEB FOR SPECIAL ENVOY FOR EURASIAN ENERGY GRAY EEB FOR ENERGY COORDINATOR MANN EUR FOR DAS BRYZA E.O. 12958:N/A TAGS: ECON ENRG TU IZ IR SY SUBJECT: TURKISH PETROLEUM CONFERENCE TARGETS UPSTREAM INVESTMENT IN IRAQ, IRAN AND SYRIA ¶1. (SBU) Summary. The purpose of Turkish Petroleum's "Northern Arabian Plate Oil and Gas Summit" (NAPOGS 2008) October 8-10 was to share information about ongoing or planned upstream development in Iran, Iraq, Syria, and Turkey. The conference targeted participation of energy ministers and national oil companies; and also included international oil companies such as BP, Shell, RWE and GDF. MFA Energy Department Head Berris Ekinci downplayed the significance of Arab energy ministers gathering in Turkey and pointed out that US and EU diplomats were invited but unable to attend. Turkish Energy Minister Guler, Iraqi Oil Minister Al-Shahristani and Iranian Deputy Oil Minister Seyyed Reza Kasaeizadeh were the highest ranking officials in attendance. Syria was represented at a lower level. End summary. ¶2. (SBU) According to Turkish Petroleum (TPAO) Acting Department Head for International Relations Murat Karci, the Northern Arabian Plate Oil and Gas Summit (NAPOGS 2008) aims to establish an information sharing platform for the upstream companies operating or planning investment in Iraq, Syria, and Turkey. The summit has two components: the conference - to which energy ministers, government officials, academicians and representatives of the oil and gas sector will attend; and the exhibition - which will highlight the equipment and services of companies doing business in the region. ¶3. (SBU) MFA Energy Department Head Berris Ekinci downplayed the significance of this gathering of Arab energy ministers and claimed it was not the first of its kind, although she was unable to name the first one. She also said the summit included national as well as international oil companies and foreign diplomats were invited although unable to attend. EU Commission Economic Counselor in Ankara Ulrike Hauer confirmed that EU Ambassador Mark Perini had been invited and opted not to go because the summit seemed like "just another oil and gas conference in Turkey." EUR Deputy Assistant Secretary Matt Bryza also said that he was invited but unable to attend due to scheduling conflicts. ¶4. (U) The conference agenda focuses on oil and gas source countries, specifically tax and regulatory regimes and the degree to which private sector investment is welcomed. There is also an emphasis on regional cooperation for the sake of increased security of supply, and on strengthened relations among the neighboring countries. There is a session on transportation focusing on the role of the Arab Gas Pipeline for bringing gas to Europe. ¶5. (U) The conference has separate panels for Iran, Iraq, Syria and Turkey. In the session on Iran, one of the topics of discussion is whether Iran can take the lead in a possible "Gas OPEC." Other topics include the LNG potential and the impact of service agreements on foreign investments. The session on Iraq focuses on the hydrocarbon law, the procedures for exploration and production licenses, and the potential of new reserves. The session on Syria addresses issues like the impact of PSAs on encouraging exploration activities in new fields, Syria's increased gas needs and the possible connection of the Arab Gas Pipeline to the Turkish grid. The session on Turkey focuses on Turkey's increased gas needs and possible sources to meet this need, Turkey's role as an energy bridge between the Middle East and Europe, LNG opportunities in the region, and the effect of market liberalization on the use of new energy resources. ¶6. (SBU) Comment: Having been left off the initial list of prequalified companies to compete for oil and gas licenses in Iraq, TPAO's real aim in organizing this conference may be to gain the confidence of the Iraqi Oil Minister by showcasing Turkey's upstream capabilities to him directly.