Identifier
Created
Classification
Origin
08ASHGABAT1334
2008-10-08 07:52:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
TURKMENISTAN: KAKAYEV REPEATS "NO FOREIGN
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C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001334
SIPDIS
STATE FOR SCA/CEN; EEB
PLEASE PASS TO USTDA DAN STEIN
USEU FOR SPECIAL ENVOY GRAY
ENERGY FOR EKIMOFF, THOMPSON
COMMERCE FOR PDYCK/DSTARKS
E.O. 12958: DECL: 10/01/2018
TAGS: PGOV PREL EINV EPET TX
SUBJECT: TURKMENISTAN: KAKAYEV REPEATS "NO FOREIGN
COMPANIES ONSHORE" MESSAGE TO COMMERCE DELEGATION
Classified By: Charge Sylvia Reed Curran for reasons 1.4 (b) and (d).
C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001334
SIPDIS
STATE FOR SCA/CEN; EEB
PLEASE PASS TO USTDA DAN STEIN
USEU FOR SPECIAL ENVOY GRAY
ENERGY FOR EKIMOFF, THOMPSON
COMMERCE FOR PDYCK/DSTARKS
E.O. 12958: DECL: 10/01/2018
TAGS: PGOV PREL EINV EPET TX
SUBJECT: TURKMENISTAN: KAKAYEV REPEATS "NO FOREIGN
COMPANIES ONSHORE" MESSAGE TO COMMERCE DELEGATION
Classified By: Charge Sylvia Reed Curran for reasons 1.4 (b) and (d).
1. (C) SUMMARY: In a meeting with Department of Commerce
officials, State Agency for the Management and Use of
Hydrocarbons Director Kakayev reinforced previous government
statements that Turkmenistan will develop its own onshore
hydrocarbon resources. Kakayev said only President
Berdimuhamedov can approve the licensing of blocks, and only
offshore blocks were "being signed" currently. He indicated
that additional U.S. companies should submit offshore
proposals, or proposals for onshore service agreements. He
also expressed interest in cooperative work regarding the
financing of hydrocarbon sector projects. Remaining silent
on proposals that have been with the State Agency for a year
or more, while petitioning for additional proposals, would
seem to raise questions about just what the State Agency--or
Berdimuhamedov--is looking for. END SUMMARY.
2. (C) On September 30, the Commerce delegation, led by DAS
Paul Dyck, met with State Agency for Management and Use of
Hydrocarbon Resources Director Yagshygeldy Kakayev to discuss
the potential for expanding the bilateral commercial
relationship. After taking a few minutes to explain the
mission and goals of the Agency, as well as its role in
implementing the new hydrocarbons law, Kakayev said the
agency's current main focus is attracting foreign companies
to do exploration work in the Caspian Sea. He noted that
seven PSAs are currently in operation, but that with the new
hydrocarbon law the Agency can now engage companies under
four different agreement types. (NOTE: Of the seven PSAs he
mentioned, four are offshore, belonging to Buried Hill,
Petronas, Wintershall, and Dragon Oil. Three others are
onshore, including those with Burren/ENI, the Austrian
company Mitro, and Chinese National Petroleum Company (CNPC).
The CNPC PSA is the only onshore PSA to be signed since
President Berdimuhamedov has been in office. END NOTE.)
3. (C) DAS Dyck asked Kakayev about proposals submitted by
U.S. companies Chevron and Marathon, both of whom have
submitted proposals in the last year and a half. Kakayev
said that only the president can approve the licensing of
blocks for development and exploration, and only offshore
blocks were being licensed currently. He added that only
service agreements with foreign companies are being signed
for onshore work.
4. (C) Kakayev acknowledged that he had met with Chevron's
country manager recently, and knew the company was a leader
in the industry and has a great international reputation. He
noted that he and other Agency officials met with Marathon
not long ago, when the company's representatives gave a
presentation on their gas-to-fuels project proposal. The
representatives also extended an invitation for Agency
officials to visit a prototype "mini-production" facility the
company operates in another country.
5. (C) When DAS Dyck asked in what sectors U.S. companies
should be encouraged to submit proposals, Kakayev said the
Agency was soliciting new proposals for exploration and
development offshore. He mentioned Conoco-Phillips' proposal
for work in blocks 19, 20, and 21 as an example. Cooperation
in financing hydrocarbon sector projects might be another
area with potential, and he said that Turkmen Gas State
Concern was interested in pursuing this.
6. (C) Kakayev said U.S. companies can also compete for
international tenders for machinery, technology, services,
and materials, if they wish. The Agency only enters into
direct negotiations with companies for offshore project
ASHGABAT 00001334 002 OF 002
proposals, however. He told the delegation that
Turkmenistan's primary oil and gas conference, TIOGE, is
scheduled for November 19-21, and is also a way in which U.S.
companies can get involved in the oil and gas sector in
Turkmenistan. He invited DAS Dyck to the conference, and
indicated invitations, including to the U.S. Embassy, would
be distributed in the future.
7. (C) COMMENT: Kakayev's comment that only the president
approves the licensing of new blocks seems to undermine the
new authority of the State Agency as described in the new
hydrocarbon law. It seems clear, however, that Turkmenistan
will not be signing PSA agreements with foreign companies for
onshore work anytime soon. What is less clear is why Kakayev
and others are continuing to solicit companies for new
offshore proposals when neither the State Agency--nor the
president himself--have determined their interest in the ones
they already have. END COMMENT.
8. (U) DAS Dyck cleared this cable.
CURRAN
SIPDIS
STATE FOR SCA/CEN; EEB
PLEASE PASS TO USTDA DAN STEIN
USEU FOR SPECIAL ENVOY GRAY
ENERGY FOR EKIMOFF, THOMPSON
COMMERCE FOR PDYCK/DSTARKS
E.O. 12958: DECL: 10/01/2018
TAGS: PGOV PREL EINV EPET TX
SUBJECT: TURKMENISTAN: KAKAYEV REPEATS "NO FOREIGN
COMPANIES ONSHORE" MESSAGE TO COMMERCE DELEGATION
Classified By: Charge Sylvia Reed Curran for reasons 1.4 (b) and (d).
1. (C) SUMMARY: In a meeting with Department of Commerce
officials, State Agency for the Management and Use of
Hydrocarbons Director Kakayev reinforced previous government
statements that Turkmenistan will develop its own onshore
hydrocarbon resources. Kakayev said only President
Berdimuhamedov can approve the licensing of blocks, and only
offshore blocks were "being signed" currently. He indicated
that additional U.S. companies should submit offshore
proposals, or proposals for onshore service agreements. He
also expressed interest in cooperative work regarding the
financing of hydrocarbon sector projects. Remaining silent
on proposals that have been with the State Agency for a year
or more, while petitioning for additional proposals, would
seem to raise questions about just what the State Agency--or
Berdimuhamedov--is looking for. END SUMMARY.
2. (C) On September 30, the Commerce delegation, led by DAS
Paul Dyck, met with State Agency for Management and Use of
Hydrocarbon Resources Director Yagshygeldy Kakayev to discuss
the potential for expanding the bilateral commercial
relationship. After taking a few minutes to explain the
mission and goals of the Agency, as well as its role in
implementing the new hydrocarbons law, Kakayev said the
agency's current main focus is attracting foreign companies
to do exploration work in the Caspian Sea. He noted that
seven PSAs are currently in operation, but that with the new
hydrocarbon law the Agency can now engage companies under
four different agreement types. (NOTE: Of the seven PSAs he
mentioned, four are offshore, belonging to Buried Hill,
Petronas, Wintershall, and Dragon Oil. Three others are
onshore, including those with Burren/ENI, the Austrian
company Mitro, and Chinese National Petroleum Company (CNPC).
The CNPC PSA is the only onshore PSA to be signed since
President Berdimuhamedov has been in office. END NOTE.)
3. (C) DAS Dyck asked Kakayev about proposals submitted by
U.S. companies Chevron and Marathon, both of whom have
submitted proposals in the last year and a half. Kakayev
said that only the president can approve the licensing of
blocks for development and exploration, and only offshore
blocks were being licensed currently. He added that only
service agreements with foreign companies are being signed
for onshore work.
4. (C) Kakayev acknowledged that he had met with Chevron's
country manager recently, and knew the company was a leader
in the industry and has a great international reputation. He
noted that he and other Agency officials met with Marathon
not long ago, when the company's representatives gave a
presentation on their gas-to-fuels project proposal. The
representatives also extended an invitation for Agency
officials to visit a prototype "mini-production" facility the
company operates in another country.
5. (C) When DAS Dyck asked in what sectors U.S. companies
should be encouraged to submit proposals, Kakayev said the
Agency was soliciting new proposals for exploration and
development offshore. He mentioned Conoco-Phillips' proposal
for work in blocks 19, 20, and 21 as an example. Cooperation
in financing hydrocarbon sector projects might be another
area with potential, and he said that Turkmen Gas State
Concern was interested in pursuing this.
6. (C) Kakayev said U.S. companies can also compete for
international tenders for machinery, technology, services,
and materials, if they wish. The Agency only enters into
direct negotiations with companies for offshore project
ASHGABAT 00001334 002 OF 002
proposals, however. He told the delegation that
Turkmenistan's primary oil and gas conference, TIOGE, is
scheduled for November 19-21, and is also a way in which U.S.
companies can get involved in the oil and gas sector in
Turkmenistan. He invited DAS Dyck to the conference, and
indicated invitations, including to the U.S. Embassy, would
be distributed in the future.
7. (C) COMMENT: Kakayev's comment that only the president
approves the licensing of new blocks seems to undermine the
new authority of the State Agency as described in the new
hydrocarbon law. It seems clear, however, that Turkmenistan
will not be signing PSA agreements with foreign companies for
onshore work anytime soon. What is less clear is why Kakayev
and others are continuing to solicit companies for new
offshore proposals when neither the State Agency--nor the
president himself--have determined their interest in the ones
they already have. END COMMENT.
8. (U) DAS Dyck cleared this cable.
CURRAN