Identifier
Created
Classification
Origin
08ASHGABAT327
2008-03-10 13:06:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: PRESIDENT VISITS SOUTH YOLOTEN AND OSMAN
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UNCLAS SECTION 01 OF 02 ASHGABAT 000327
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TAGS: PREL EPET PGOV TX
SUBJECT: TURKMENISTAN: PRESIDENT VISITS SOUTH YOLOTEN AND OSMAN
FIELDS
UNCLAS SECTION 01 OF 02 ASHGABAT 000327
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EUR/RUS, EUR/CARC, EEB
PLEASE PASS TO USTDA DAN STEIN
COMMERCE FOR HUEPER
ENERGY FOR EKIMOFF/THOMPSON
E.O. 12958: N/A
TAGS: PREL EPET PGOV TX
SUBJECT: TURKMENISTAN: PRESIDENT VISITS SOUTH YOLOTEN AND OSMAN
FIELDS
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: On March 4 President Berdimuhamedov visited the
South Yoloten and Osman onshore oil and gas fields. According to
Turkmenistan media reports, the field has a potential of 3 trillion
cubic meters of gas. The timing of the trip to South Yoloten and
Osman fields did not have an apparent explanation, since there has
not been any significant change in the operations or reserve
estimates. The trip may have been organized on short notice to
convince Berdimuhamedov that national companies can indeed
successfully operate at depths of 4,500 meters. There is also the
possibility he felt the need to advertise internationally that
Turkmenistan has plenty of gas to meet its commitments, and more.
END SUMMARY.
HOW MUCH GAS IS OUT THERE?
3. (U) During his day-long trip March 4 to the South Yoloten and
Osman onshore oil and gas fields located 50 kilometers south of Mary
city, President Berdimuhamedov visited one oil well and three gas
exploration wells. The first discoveries date back to 2006, but
President Berdimuhamedov inaugurated the fields by torching gas
flares and turning oil control valves at several of the wells.
According to Turkmenistan media reports, the field has a potential
of 3 trillion cubic meters of gas, reportedly making it one of the
largest gas fields in the world. The gas wells are reported to be
as deep as 4,500 meters. Initial tests ran on these wells yielded
daily flow rates of 0.7 million cubic meters, 1 million cubic meters
and 7 million cubic meters of natural gas. Official reports also
mention six more gas wells and three oil wells, also with good
production rates. No test result figures were provided regarding
these wells. The same reports indicate that the formation has a
thickness of more than 600 meters, but fail to mention any
information on thickness of actual reservoirs.
3. (U) Turkmenistani experts claim that South Yoloten and Osman,
which were considered separate structures in the Soviet era, are one
giant field. In November 2006, several days after a massive
blow-out of one of Osman's exploration wells, former President
Niyazov announced that the Southern Yoloten-Osman had 7 trillion
cubic meters of gas. However, the current figure that Turkmenistan
quotes is only 3 trillion cubic meters. On December 26, 2007,
President Berdimuhamedov instructed hydrocarbon officials to perform
an international audit of the hydrocarbon reserves of South Yoloten
and Osman fields, but the work has not yet commenced.
5. (U) Exploration of the South Yoloten field was first launched in
2005, and a year later the field started to produce its first oil.
However, the oil production remains insignificant. It is supplied
to the Seydi refinery by rail. Exploration and production wells in
the South Yoloten and Osman fields are drilled with the help of
Parker Drilling/Chalik Enerji and the Chinese National Petroleum
Company's (CNPC) Changqing Petroleum Exploration Bureau. CNPC
signed a service contract with Turkmengeology in April 2007 to drill
12 natural gas wells within three years. Post understands that both
Parker Drilling and CNPC experienced blow outs while drilling.
6. (SBU) COMMENT. The timing of the trip to South Yoloten and
Osman fields did not have an apparent explanation, since there has
not been any significant change in the operations or reserve
estimates. On the contrary, the announced potential gas volume is
lower than had been first declared by President Niyazov in 2006.
The visit occurred several days after Ambassador Mann's visit to
Turkmenistan and discussions of Turkmenistan's technological
capability to produce in the sub-salt Jurassic layers. The trip may
have been organized on short notice to convince Berdimuhamedov that
national companies can indeed successfully operate at such depths.
There is also the possibility he felt the need to advertise
ASHGABAT 00000327 002 OF 002
internationally that Turkmenistan has plenty of gas to meet its
commitments, and more. END COMMENT.
HOAGLAND
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EUR/RUS, EUR/CARC, EEB
PLEASE PASS TO USTDA DAN STEIN
COMMERCE FOR HUEPER
ENERGY FOR EKIMOFF/THOMPSON
E.O. 12958: N/A
TAGS: PREL EPET PGOV TX
SUBJECT: TURKMENISTAN: PRESIDENT VISITS SOUTH YOLOTEN AND OSMAN
FIELDS
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: On March 4 President Berdimuhamedov visited the
South Yoloten and Osman onshore oil and gas fields. According to
Turkmenistan media reports, the field has a potential of 3 trillion
cubic meters of gas. The timing of the trip to South Yoloten and
Osman fields did not have an apparent explanation, since there has
not been any significant change in the operations or reserve
estimates. The trip may have been organized on short notice to
convince Berdimuhamedov that national companies can indeed
successfully operate at depths of 4,500 meters. There is also the
possibility he felt the need to advertise internationally that
Turkmenistan has plenty of gas to meet its commitments, and more.
END SUMMARY.
HOW MUCH GAS IS OUT THERE?
3. (U) During his day-long trip March 4 to the South Yoloten and
Osman onshore oil and gas fields located 50 kilometers south of Mary
city, President Berdimuhamedov visited one oil well and three gas
exploration wells. The first discoveries date back to 2006, but
President Berdimuhamedov inaugurated the fields by torching gas
flares and turning oil control valves at several of the wells.
According to Turkmenistan media reports, the field has a potential
of 3 trillion cubic meters of gas, reportedly making it one of the
largest gas fields in the world. The gas wells are reported to be
as deep as 4,500 meters. Initial tests ran on these wells yielded
daily flow rates of 0.7 million cubic meters, 1 million cubic meters
and 7 million cubic meters of natural gas. Official reports also
mention six more gas wells and three oil wells, also with good
production rates. No test result figures were provided regarding
these wells. The same reports indicate that the formation has a
thickness of more than 600 meters, but fail to mention any
information on thickness of actual reservoirs.
3. (U) Turkmenistani experts claim that South Yoloten and Osman,
which were considered separate structures in the Soviet era, are one
giant field. In November 2006, several days after a massive
blow-out of one of Osman's exploration wells, former President
Niyazov announced that the Southern Yoloten-Osman had 7 trillion
cubic meters of gas. However, the current figure that Turkmenistan
quotes is only 3 trillion cubic meters. On December 26, 2007,
President Berdimuhamedov instructed hydrocarbon officials to perform
an international audit of the hydrocarbon reserves of South Yoloten
and Osman fields, but the work has not yet commenced.
5. (U) Exploration of the South Yoloten field was first launched in
2005, and a year later the field started to produce its first oil.
However, the oil production remains insignificant. It is supplied
to the Seydi refinery by rail. Exploration and production wells in
the South Yoloten and Osman fields are drilled with the help of
Parker Drilling/Chalik Enerji and the Chinese National Petroleum
Company's (CNPC) Changqing Petroleum Exploration Bureau. CNPC
signed a service contract with Turkmengeology in April 2007 to drill
12 natural gas wells within three years. Post understands that both
Parker Drilling and CNPC experienced blow outs while drilling.
6. (SBU) COMMENT. The timing of the trip to South Yoloten and
Osman fields did not have an apparent explanation, since there has
not been any significant change in the operations or reserve
estimates. On the contrary, the announced potential gas volume is
lower than had been first declared by President Niyazov in 2006.
The visit occurred several days after Ambassador Mann's visit to
Turkmenistan and discussions of Turkmenistan's technological
capability to produce in the sub-salt Jurassic layers. The trip may
have been organized on short notice to convince Berdimuhamedov that
national companies can indeed successfully operate at such depths.
There is also the possibility he felt the need to advertise
ASHGABAT 00000327 002 OF 002
internationally that Turkmenistan has plenty of gas to meet its
commitments, and more. END COMMENT.
HOAGLAND