Identifier
Created
Classification
Origin
08ASHGABAT1169
2008-09-04 16:32:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
TURKMENISTAN: EXXONMOBIL STILL TESTING THE WATERS
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C O N F I D E N T I A L ASHGABAT 001169
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 09/04/2018
TAGS: PGOV PREL EPET TX
SUBJECT: TURKMENISTAN: EXXONMOBIL STILL TESTING THE WATERS
REF: ASHGABAT 0740
Classified By: Charge d'Affaires Sylvia Reed Curran for reasons 1.4(B)
and (D).
C O N F I D E N T I A L ASHGABAT 001169
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 09/04/2018
TAGS: PGOV PREL EPET TX
SUBJECT: TURKMENISTAN: EXXONMOBIL STILL TESTING THE WATERS
REF: ASHGABAT 0740
Classified By: Charge d'Affaires Sylvia Reed Curran for reasons 1.4(B)
and (D).
1. (C) During a September 2 meeting, a visiting ExxonMobil
representative told the A/DCM that his company is continuing
to test the waters with the Government of Turkmenistan. The
company is continuing to meet with hydrocarbon officials --
most recently with TurkmenGaz on September 1 and 2 -- in
order to try to get a clearer sense of what type of onshore
production deal the Government of Turkmenistan would be
willing to entertain. So far, the discussions have been very
general. While ExxonMobil has not submitted even a
conceptual proposal, the representative claimed that "they
should know our interest by now, and they have never said
that we shouldn't be asking questions." (NOTE: As reported
reftel, ExxonMobil told us in June that it wants to work on
onshore gas production, and that it wants to package its
services as an extraction-to-power producer. END NOTE.) The
company sees significant gas opportunities onshore. It had
hoped to receive approval for one of its vice presidents to
meet with President Berdimuhamedov and to use that meeting to
unveil its conceptual plan. Given its lack of success to
date in getting a meeting confirmation, it is beginning to
reevaluate its options and may instead work the proposal up
Turkmenistan's bureaucratic structure.
2. (C) COMMENT: During the 1990's, Exxon and Mobil had
contracts to work the right bank of the Amu Darya River,
where China National Petroleum Corporation currently has a
PSA, and the old Monument facility south of what is now
Balkanabat, which is now being worked by Burren/ENI. When
the two merged, they pulled out of Turkmenistan, leaving ill
will in their wake. While we recognize that ExxonMobil wants
to tread carefully given this history, our understanding is
that it is seriously behind the curve, even on onshore bids.
Numerous other companies, including Chevron, BP, Total, Shell
and Wintershall reportedly have been doing their groundwork
for months, waiting for the government to conclude that it is
prepared to allow foreign companies to work onshore. In
Chevron's case, it submitted a detailed bid back in March,
and has been working to ensure that hydrocarbon officials
understand the basic elements of its bid. All this does not
ensure that Chevron or any of the others will, in fact,
realize success, but it does put ExxonMobil at the end of the
pack when it finally does come up with something for
Turkmenistan's officials to consider. END COMMENT.
CURRAN
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 09/04/2018
TAGS: PGOV PREL EPET TX
SUBJECT: TURKMENISTAN: EXXONMOBIL STILL TESTING THE WATERS
REF: ASHGABAT 0740
Classified By: Charge d'Affaires Sylvia Reed Curran for reasons 1.4(B)
and (D).
1. (C) During a September 2 meeting, a visiting ExxonMobil
representative told the A/DCM that his company is continuing
to test the waters with the Government of Turkmenistan. The
company is continuing to meet with hydrocarbon officials --
most recently with TurkmenGaz on September 1 and 2 -- in
order to try to get a clearer sense of what type of onshore
production deal the Government of Turkmenistan would be
willing to entertain. So far, the discussions have been very
general. While ExxonMobil has not submitted even a
conceptual proposal, the representative claimed that "they
should know our interest by now, and they have never said
that we shouldn't be asking questions." (NOTE: As reported
reftel, ExxonMobil told us in June that it wants to work on
onshore gas production, and that it wants to package its
services as an extraction-to-power producer. END NOTE.) The
company sees significant gas opportunities onshore. It had
hoped to receive approval for one of its vice presidents to
meet with President Berdimuhamedov and to use that meeting to
unveil its conceptual plan. Given its lack of success to
date in getting a meeting confirmation, it is beginning to
reevaluate its options and may instead work the proposal up
Turkmenistan's bureaucratic structure.
2. (C) COMMENT: During the 1990's, Exxon and Mobil had
contracts to work the right bank of the Amu Darya River,
where China National Petroleum Corporation currently has a
PSA, and the old Monument facility south of what is now
Balkanabat, which is now being worked by Burren/ENI. When
the two merged, they pulled out of Turkmenistan, leaving ill
will in their wake. While we recognize that ExxonMobil wants
to tread carefully given this history, our understanding is
that it is seriously behind the curve, even on onshore bids.
Numerous other companies, including Chevron, BP, Total, Shell
and Wintershall reportedly have been doing their groundwork
for months, waiting for the government to conclude that it is
prepared to allow foreign companies to work onshore. In
Chevron's case, it submitted a detailed bid back in March,
and has been working to ensure that hydrocarbon officials
understand the basic elements of its bid. All this does not
ensure that Chevron or any of the others will, in fact,
realize success, but it does put ExxonMobil at the end of the
pack when it finally does come up with something for
Turkmenistan's officials to consider. END COMMENT.
CURRAN