TURKMENISTAN: MORE "YIKES MOMENTS" AT THE

C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 000358 SIPDIS SIPDIS STATE FOR SCA/CEN, EEB PLEASE PASS TO USTDA DAN STEIN ENERGY FOR EKIMOFF, THOMPSON COMMERCE FOR HUEPER E.O. 12958: DECL: 03/19/2018 TAGS: PGOV PREL ECON EPET TX SUBJECT: TURKMENISTAN: MORE "YIKES MOMENTS" AT THE HYDROCARBON STATE AGENCY Classified By: CDA Richard E. Hoagland: 1.4 (B),(D) ¶1. (C) On March 19, Hydrocarbon State Agency Director Muradov -- admitted the Government of Turkmenistan will not meet the final deadline to submit names for the next USTDA training in the United States; -- said he wants to find an international law firm or oil and gas consultancy that will "share the risk" of its advice; and -- asked for a recommendation for the best oil and gas analytical and real-time gas-pricing service, but admitted Turkmenistan's oil and gas sector does not yet have access to high-speed Internet. ¶2. (U) Charge met March 19 with Hydrocarbon State Agency Director Byrammurad Muradov. State Agency Senior Expert Yakub Hanberdiyev and Senior Legal Expert Yolbars Kepbanov also participated. DEALINE MISSED FOR USTDA TRAINING IN THE UNITED STATES ¶3. (SBU) Muradov admitted Turkmenistan will not meet the final-final post-deadline deadline to submit names for the next phase of USTDA-sponsored training in the United States for gas and oil experts. Speaking openly and frankly, he said it has been an interagency nightmare to try to coordinate who participates. At least the Ministry of Oil and Gas and Geological Institute have not yet submitted names and probably won't do so, in part because of the upcoming long spring holiday weekend, before the week of March 24. Then the list will have to go through the Cabinet of Minister -- maybe another two weeks -- for their recommendation to the President so he can sign the presidential decree allowing the participants to travel overseas. ¶4. (C) Muradov was greatly mortified. He said, "I was too optimistic. I thought I could make it happen." He asked that his sincere apologies be passed to all involved. In reply to Charge's blunt question, Muradov averred there is absolutely no other problem than the Turkmen bureaucracy. It's not a larger political issue; it's bureaucratic incompetence. He said Turkmenistan greatly values the USTDA cooperation and wants it to continue and to expand. He added he is putting together, and locking in, the participants for all further iterations of the training programn so that this "never happens again." INDEPENDENT CONSULTANTS ¶5. (C) Charge noted he had recommended at the turn of the year the State Agency consider hiring an international law firm or consultancy to help it wade through the complexities of major Western companies' proposals, and had then provided a list of such consulting firms, many based in Almaty, Kazakhstan. Muradov said the State Agency has been in touch with several to ask them to make proposals and hopes to make a decision by the middle of this year. He confided, however, he's not very satisfied with what he's seen so far. "They give expert advice and then expect us to make the decision. I want them to share the risk of the decision, to stand by us for 30 years, to be a partner." Charge noted most consultancies do not operate like that, and finding such a partner may be difficult. (COMMENT: This emphasizes yet again the Turkmen fear of taking responsibility and making the "wrong decision." What may result is Muradov will find a ASHGABAT 00000358 002 OF 002 small middle-man firm that will offer to play such a role. END COMMENT.) NEED REAL-TIME INFORMATION ¶6. (C) Muradov requested Charge help him find a service that will provide his agency real-time information about market price for gas and analytical services. Charge replied that should be relatively easy and asked if the Oil and Gas Building, in which the State Agency is located, has high-speed Internet. Muradov said his Agency has local Internet, but it's too slow to use. Charge proposed the Agency use the American Embassy Employee Association model and receive high-speed Internet by satellite from an offshore Internet service provider. He asked, "Would your government permit that?" Muradov said he would try to convince the Cabinet of Ministers, but he didn't seem overly enthusiastic. Charge said, "You cannot do business in the global marketplace without high-speed Internet. Without Internet, it's like trying to do brain surgery with a sharp rock." Muradov said, "You know I understand that, but...." HOAGLAND