Identifier
Created
Classification
Origin
08ASHGABAT1643
2008-12-30 07:55:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
RUSSIAN AMBASSADOR PROVIDES OVERVIEW OF RELATIONS
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C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001643
SIPDIS
E.O. 12958: DECL: 12/29/2018
TAGS: PREL EPET ECON RU TX
SUBJECT: RUSSIAN AMBASSADOR PROVIDES OVERVIEW OF RELATIONS
WITH TURKMENISTAN
Classified By: Charge Richard Miles. Reasons 1.4 (B) and (D).
C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001643
SIPDIS
E.O. 12958: DECL: 12/29/2018
TAGS: PREL EPET ECON RU TX
SUBJECT: RUSSIAN AMBASSADOR PROVIDES OVERVIEW OF RELATIONS
WITH TURKMENISTAN
Classified By: Charge Richard Miles. Reasons 1.4 (B) and (D).
1. (C) SUMMARY: In a recent meeting with the Charge, the
Russian Ambassador discussed Russian activity in
Turkmenistan. Russian oil and gas firms are pursuing
production projects, with two firms close to finalizing
agreements. The Ambassador appeared well informed about the
Chinese gas pipeline and production project. The Russian
government provides scholarships for Turkmen to study
throughout Russia and is opening a fully-licensed branch of
the Gubkin Oil and Gas Institute in Ashgabat. The Russian
approach to its relations with Turkmenistan seeks to protect
its interests and pursue new business opportunities in oil
and gas, while at the same time building Turkmen capacity in
the sector. It remains to be seen to what extent the Turkmen
view these efforts as an attempt to perpetuate their gas
export dependence on Russia. END SUMMARY.
RUSSIAN FIRMS LOOKING FOR OIL/GAS PROJECTS
2. (C) During a December 24 meeting with the Charge, Russian
Ambassador Igor Blatov outlined the activities of four
Russian companies, Lukoil (partnering with ConocoPhillips),
Itera, TNK-BP and Tatneft, that are pursuing projects in
Turkmenistan. According to Blatov, Lukoil and Itera are
closest to final agreements. The Lukoil/ConocoPhillips
proposal would involve a USD three billion investment in
exploration and production over a four or five year term.
The proposed TNK-BP project would revitalize approximately
2,000 capped oil wells through the use of advanced extraction
technology.
FOLLOWS PROGRESS OF CHINESE GAS PROJECT
3. (C) Blatov expressed no concern about the potential
competition for Turkmen gas posed by the completion of the
Chinese pipeline next year. He was well informed about the
details, explaining that of the 30 bcm per year commitment to
China, 17 bcm would be provided by Turkmengaz and the
remaining 13 bcm would be produced by the Chinese under their
production sharing agreement. He also mentioned ongoing
Chinese construction of two gas purification plants necessary
to render the high-sulphur gas usable.
4. (C) In Blatov's view, the Turkmen do not need foreign help
in order to develop the huge gas deposits in eastern
Turkmenistan. The deposits have already been located,
minimizing the investment needed. Also, in Blatov's opinion,
the Turkmen have engineers who are sufficiently skilled to
perform the task.
RUSSIANS ACTIVE IN EDUCATION SPHERE
5. (C) Blatov explained some of the challenges encountered in
establishing an Ashgabat branch of the Moscow-based Gubkin
Oil and Gas Institute. Since a diploma issued by the
Ashgabat branch will not differ in any respect from those
issued in Moscow, the branch needs to be licensed by the
Russian Ministry of Education. Russian faculty is being sent
from the Moscow institution and some Turkmen faculty will be
sent to Moscow for training and licensing in fields such as
mathematics, computer science and chemistry.
6. (C) In addition to setting up the Gubkin branch, the
Russian Government provided scholarships for 250 Turkmen
students to study at universities throughout Russia in a
wide-range of subjects. Turkmenistan government agencies
also sent about 100 people to study at government expense in
the oil and gas sector at the Gubkin Institute and Tyumen
State Oil and Gas University, as well as ship engineering at
Astrakhan State Technical University.
HIGH LEVEL VISITS KEEP BLATOV IN ASHGABAT
7. (C) Blatov bemoaned his inability to travel much
in-country, saying that there are too many high-level visits
ASHGABAT 00001643 002 OF 002
that keep him in Ashgabat. He mentioned DPM Viktor Zubkov's
December 9 visit as well as numerous visits related to
setting up the Gubkin branch. Gazprom CEO Alexey Miller's
visit the following day would be the last high-level visit of
2008. He said President Berdimuhamedov would travel to
Moscow in March.
8. (C) COMMENT: In the competition to secure access to
Turkmen gas, it appears the Russians are not relying solely
on the advantage provided to them by the existing transport
infrastructure and geography. Rather, they are attempting to
build a partnership based not only on language and historical
ties, but also on new investment in production capabilities
according to Turkmen priorities and in the human capital
needed to operate a modern hydrocarbons sector. It remains
to be seen to what extent the Turkmen see Russian efforts as
an attempt to limit their options and perpetuate their
dependence on Russia to export their gas. END COMMENT.
MILES
SIPDIS
E.O. 12958: DECL: 12/29/2018
TAGS: PREL EPET ECON RU TX
SUBJECT: RUSSIAN AMBASSADOR PROVIDES OVERVIEW OF RELATIONS
WITH TURKMENISTAN
Classified By: Charge Richard Miles. Reasons 1.4 (B) and (D).
1. (C) SUMMARY: In a recent meeting with the Charge, the
Russian Ambassador discussed Russian activity in
Turkmenistan. Russian oil and gas firms are pursuing
production projects, with two firms close to finalizing
agreements. The Ambassador appeared well informed about the
Chinese gas pipeline and production project. The Russian
government provides scholarships for Turkmen to study
throughout Russia and is opening a fully-licensed branch of
the Gubkin Oil and Gas Institute in Ashgabat. The Russian
approach to its relations with Turkmenistan seeks to protect
its interests and pursue new business opportunities in oil
and gas, while at the same time building Turkmen capacity in
the sector. It remains to be seen to what extent the Turkmen
view these efforts as an attempt to perpetuate their gas
export dependence on Russia. END SUMMARY.
RUSSIAN FIRMS LOOKING FOR OIL/GAS PROJECTS
2. (C) During a December 24 meeting with the Charge, Russian
Ambassador Igor Blatov outlined the activities of four
Russian companies, Lukoil (partnering with ConocoPhillips),
Itera, TNK-BP and Tatneft, that are pursuing projects in
Turkmenistan. According to Blatov, Lukoil and Itera are
closest to final agreements. The Lukoil/ConocoPhillips
proposal would involve a USD three billion investment in
exploration and production over a four or five year term.
The proposed TNK-BP project would revitalize approximately
2,000 capped oil wells through the use of advanced extraction
technology.
FOLLOWS PROGRESS OF CHINESE GAS PROJECT
3. (C) Blatov expressed no concern about the potential
competition for Turkmen gas posed by the completion of the
Chinese pipeline next year. He was well informed about the
details, explaining that of the 30 bcm per year commitment to
China, 17 bcm would be provided by Turkmengaz and the
remaining 13 bcm would be produced by the Chinese under their
production sharing agreement. He also mentioned ongoing
Chinese construction of two gas purification plants necessary
to render the high-sulphur gas usable.
4. (C) In Blatov's view, the Turkmen do not need foreign help
in order to develop the huge gas deposits in eastern
Turkmenistan. The deposits have already been located,
minimizing the investment needed. Also, in Blatov's opinion,
the Turkmen have engineers who are sufficiently skilled to
perform the task.
RUSSIANS ACTIVE IN EDUCATION SPHERE
5. (C) Blatov explained some of the challenges encountered in
establishing an Ashgabat branch of the Moscow-based Gubkin
Oil and Gas Institute. Since a diploma issued by the
Ashgabat branch will not differ in any respect from those
issued in Moscow, the branch needs to be licensed by the
Russian Ministry of Education. Russian faculty is being sent
from the Moscow institution and some Turkmen faculty will be
sent to Moscow for training and licensing in fields such as
mathematics, computer science and chemistry.
6. (C) In addition to setting up the Gubkin branch, the
Russian Government provided scholarships for 250 Turkmen
students to study at universities throughout Russia in a
wide-range of subjects. Turkmenistan government agencies
also sent about 100 people to study at government expense in
the oil and gas sector at the Gubkin Institute and Tyumen
State Oil and Gas University, as well as ship engineering at
Astrakhan State Technical University.
HIGH LEVEL VISITS KEEP BLATOV IN ASHGABAT
7. (C) Blatov bemoaned his inability to travel much
in-country, saying that there are too many high-level visits
ASHGABAT 00001643 002 OF 002
that keep him in Ashgabat. He mentioned DPM Viktor Zubkov's
December 9 visit as well as numerous visits related to
setting up the Gubkin branch. Gazprom CEO Alexey Miller's
visit the following day would be the last high-level visit of
2008. He said President Berdimuhamedov would travel to
Moscow in March.
8. (C) COMMENT: In the competition to secure access to
Turkmen gas, it appears the Russians are not relying solely
on the advantage provided to them by the existing transport
infrastructure and geography. Rather, they are attempting to
build a partnership based not only on language and historical
ties, but also on new investment in production capabilities
according to Turkmen priorities and in the human capital
needed to operate a modern hydrocarbons sector. It remains
to be seen to what extent the Turkmen see Russian efforts as
an attempt to limit their options and perpetuate their
dependence on Russia to export their gas. END COMMENT.
MILES