Identifier
Created
Classification
Origin
08ASHGABAT415
2008-04-03 08:22:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
TURKMENISTAN: CHEVRON GETTING A HEARING
how-toVZCZCXRO1933 PP RUEHAG RUEHBI RUEHCI RUEHLH RUEHPW RUEHROV DE RUEHAH #0415 0940822 ZNY CCCCC ZZH P 030822Z APR 08 FM AMEMBASSY ASHGABAT TO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY RUCNCIS/CIS COLLECTIVE PRIORITY RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY RUEHAD/AMEMBASSY ABU DHABI PRIORITY 0283 RUEHAK/AMEMBASSY ANKARA PRIORITY 3582 RUEHBJ/AMEMBASSY BEIJING PRIORITY 1400 RUEHKL/AMEMBASSY KUALA LUMPUR PRIORITY 0088 RUEHKO/AMEMBASSY TOKYO PRIORITY 1267 RUEHIT/AMCONSUL ISTANBUL PRIORITY 1836 RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY RUEAIIA/CIA WASHDC PRIORITY RHEFDIA/DIA WASHDC PRIORITY RUEKJCS/JOINT STAFF WASHDC PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
C O N F I D E N T I A L ASHGABAT 000415
SIPDIS
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HEUPER
E.O. 12958: DECL: 04/03/2018
TAGS: PREL EPET EINV TX
SUBJECT: TURKMENISTAN: CHEVRON GETTING A HEARING
REF: ASHGABAT 0338
Classified By: CDA Richard E. Hoagland: 1.4(B),(D).
C O N F I D E N T I A L ASHGABAT 000415
SIPDIS
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HEUPER
E.O. 12958: DECL: 04/03/2018
TAGS: PREL EPET EINV TX
SUBJECT: TURKMENISTAN: CHEVRON GETTING A HEARING
REF: ASHGABAT 0338
Classified By: CDA Richard E. Hoagland: 1.4(B),(D).
1. (C) Chevron's Turkmenistan Country Manager, Doug
Uchikura, told EmbOff April 2 that, following his March 11
submission of a detailed bid to drillQlow the salt in the
Amu Darya basin (reftel),he had a "very positive" one-on-one
meeting with the Executive Director of the State Agency for
Management and Use of Hydrocarbon Resources, Byrammurat
Muradov. Muradov said he was "very excited" about the
proposal and agreed to set up a two-hour meeting with
representatives of other relevant hydrocarbon agencies,
including the Ministry of Oil and Gas, Turkmengeology and
Turkmengaz, to allow Uchikura and a panel of Chevron experts
to walk officials through the details of Chevron's proposal.
(NOTE: Uchikura originally had planned to also discuss a
Wood-McKenzie report that Chevron had commissioned and passed
to the Government at the same time as the bid. However,
problems getting Letters of Invitation (LOIs) for the report
experts in time for the April 5 meeting has led Uchikura to
decide to limit the meeting to discussion of the proposal.
Uchikura told EmbOff during a follow-up call April 3 that he
thinks the decision to postpone a discussion of the
Wood-McKenzie report is "for the best," since it will allow
more time to discuss the bid proposal in detail. END NOTE.)
At Muradov's suggestion, Chevron's team is focusing on making
the case for why foreign major petroleum companies should be
allowed to drill onshore -- and on what Chevron can bring to
the table that other firms cannot.
2. (C) Uchikura said Chevron is a sponsor of the April 17-18
"Oil and Gas in Turkmenistan" conference that the UK
government is hosting in London. Nevertheless, it is slowly
being "squeezed out" since a decision by Turkmenistan's
hydrocarbon officials to shorten their stay has led to
rejiggering of the schedule in order to ensure that BP
maintains the most prominent role during the conference.
Specifically, conference organizers have asked Chevron to
sponsor a lunch, rather than the dinner that it had
originally signed up to host. Likewise, a planned trip to
Aberdeen so that officials can see Chevron's new Energy
Technology Center has been cancelled. Uchikura is
disappointed but philosophical about these changes.
3. (C) COMMENT: Post agrees that the decision to postpone
discussion of the Wood-McKenzie report is a good idea, since
Muradov indicated to the Charge during a recent meeting that
he simply did not understand the report. This lack of
understanding of world-class hydrocarbon operations extends
beyond the State Agency and may even be contributing, in
part, to Turkmenistan's "go-it-alone" thinking about onshore
development. (Most western experts agree that Turkmenistan
does not have the financial resources -- one expert recently
suggested that annual costs to develop sub-salt reserves
could reach $20-30 billion per year for the next several
years -- human capacity or technology needed for such a
route.) Even focusing just on Chevron's proposal could prove
to be a real challenge. Q COMMENT.
HOAGLAND
SIPDIS
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HEUPER
E.O. 12958: DECL: 04/03/2018
TAGS: PREL EPET EINV TX
SUBJECT: TURKMENISTAN: CHEVRON GETTING A HEARING
REF: ASHGABAT 0338
Classified By: CDA Richard E. Hoagland: 1.4(B),(D).
1. (C) Chevron's Turkmenistan Country Manager, Doug
Uchikura, told EmbOff April 2 that, following his March 11
submission of a detailed bid to drillQlow the salt in the
Amu Darya basin (reftel),he had a "very positive" one-on-one
meeting with the Executive Director of the State Agency for
Management and Use of Hydrocarbon Resources, Byrammurat
Muradov. Muradov said he was "very excited" about the
proposal and agreed to set up a two-hour meeting with
representatives of other relevant hydrocarbon agencies,
including the Ministry of Oil and Gas, Turkmengeology and
Turkmengaz, to allow Uchikura and a panel of Chevron experts
to walk officials through the details of Chevron's proposal.
(NOTE: Uchikura originally had planned to also discuss a
Wood-McKenzie report that Chevron had commissioned and passed
to the Government at the same time as the bid. However,
problems getting Letters of Invitation (LOIs) for the report
experts in time for the April 5 meeting has led Uchikura to
decide to limit the meeting to discussion of the proposal.
Uchikura told EmbOff during a follow-up call April 3 that he
thinks the decision to postpone a discussion of the
Wood-McKenzie report is "for the best," since it will allow
more time to discuss the bid proposal in detail. END NOTE.)
At Muradov's suggestion, Chevron's team is focusing on making
the case for why foreign major petroleum companies should be
allowed to drill onshore -- and on what Chevron can bring to
the table that other firms cannot.
2. (C) Uchikura said Chevron is a sponsor of the April 17-18
"Oil and Gas in Turkmenistan" conference that the UK
government is hosting in London. Nevertheless, it is slowly
being "squeezed out" since a decision by Turkmenistan's
hydrocarbon officials to shorten their stay has led to
rejiggering of the schedule in order to ensure that BP
maintains the most prominent role during the conference.
Specifically, conference organizers have asked Chevron to
sponsor a lunch, rather than the dinner that it had
originally signed up to host. Likewise, a planned trip to
Aberdeen so that officials can see Chevron's new Energy
Technology Center has been cancelled. Uchikura is
disappointed but philosophical about these changes.
3. (C) COMMENT: Post agrees that the decision to postpone
discussion of the Wood-McKenzie report is a good idea, since
Muradov indicated to the Charge during a recent meeting that
he simply did not understand the report. This lack of
understanding of world-class hydrocarbon operations extends
beyond the State Agency and may even be contributing, in
part, to Turkmenistan's "go-it-alone" thinking about onshore
development. (Most western experts agree that Turkmenistan
does not have the financial resources -- one expert recently
suggested that annual costs to develop sub-salt reserves
could reach $20-30 billion per year for the next several
years -- human capacity or technology needed for such a
route.) Even focusing just on Chevron's proposal could prove
to be a real challenge. Q COMMENT.
HOAGLAND