Identifier
Created
Classification
Origin
08ASHGABAT605
2008-05-12 12:13:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
TURKMENISTAN: A FRUSTRATED MIDLAND CONTINUES TO
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C O N F I D E N T I A L ASHGABAT 000605
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 05/12/2018
TAGS: PGOV ECON EPET TX
SUBJECT: TURKMENISTAN: A FRUSTRATED MIDLAND CONTINUES TO
WAIT FOR A CONTRACT
REF: ASHGABAT 0278
Classified By: CDA Richard E. Hoagland: 1.4(B),(D).
C O N F I D E N T I A L ASHGABAT 000605
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 05/12/2018
TAGS: PGOV ECON EPET TX
SUBJECT: TURKMENISTAN: A FRUSTRATED MIDLAND CONTINUES TO
WAIT FOR A CONTRACT
REF: ASHGABAT 0278
Classified By: CDA Richard E. Hoagland: 1.4(B),(D).
1. (C) Murad Sariyev, a former U.S. UGRAD exchange student
who now works as an interpreter for Midland Oil and Gas, told
EmbOff May 7 that his new employers continue to wait -- with
no results yet -- for a contract to do business in
Turkmenistan. (NOTE: Midland Chairman Robert Murphy told
Charge in late February -- see reftel -- that Midland hoped
to see movement on three potential sectoral projects. END
NOTE.) Sariyev said nothing about Midland's efforts to get a
production sharing agreement (PSA) for an off-shore Caspian
block. He indicated, however, that Midland submitted a bid
in mid-April to perform drilling intensification and
improvement of existing wells south of Balkanabat (previously
Nebitdag) and is hopeful it will receive a service contract.
When Midland and its Korean partners called on the former
Minister of Communications to discuss a bid on a national
high-speed wireless Internet system, the minister gave them
the cold shoulder, stating that Turkmenistan does not need or
want foreign-company involvement in the IT sector. Two weeks
later, the minister had been fired for incompetence by
President Berdimuhamedov. Midland is planning to bring its
Korean partners back to Turkmenistan for a meeting with the
new minister in hopes that he will be more amenable to a
contract than his predecessor.
2. (C) In the meantime, the company's Executive Vice
President of Development, Richard Visovsky, is working on
registering Midland and opening a new office in the Mir
neighborhood of Ashgabat. With President Berdimuhamedov's
attention now focused on other issues, however, the company
in general is finding that bureaucratic hassles are
increasing. In contrast, immediately following its feel-good
meeeting with the president, everything seemed to proceed
more smoothly. Most recently, the company has run into
problems getting a letter of invitation for its accountant,
who needs to be here to pay for the renovation of the office
space.
3. (C) COMMENT: Midland's experience in Turkmenistan is not
unique. Although the government is very slowly beginning to
roll out revamped new legislation -- including legislation
that is supposed to help improve the business climate -- a
significant gap remains between Western-style business
practices and the attitudes and actions in Turkmenistan. The
toughest part of promoting an improved investment climate
will be in changing the attitudes of those responsible for
implementing reform. END COMMENT.
HOAGLAND
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 05/12/2018
TAGS: PGOV ECON EPET TX
SUBJECT: TURKMENISTAN: A FRUSTRATED MIDLAND CONTINUES TO
WAIT FOR A CONTRACT
REF: ASHGABAT 0278
Classified By: CDA Richard E. Hoagland: 1.4(B),(D).
1. (C) Murad Sariyev, a former U.S. UGRAD exchange student
who now works as an interpreter for Midland Oil and Gas, told
EmbOff May 7 that his new employers continue to wait -- with
no results yet -- for a contract to do business in
Turkmenistan. (NOTE: Midland Chairman Robert Murphy told
Charge in late February -- see reftel -- that Midland hoped
to see movement on three potential sectoral projects. END
NOTE.) Sariyev said nothing about Midland's efforts to get a
production sharing agreement (PSA) for an off-shore Caspian
block. He indicated, however, that Midland submitted a bid
in mid-April to perform drilling intensification and
improvement of existing wells south of Balkanabat (previously
Nebitdag) and is hopeful it will receive a service contract.
When Midland and its Korean partners called on the former
Minister of Communications to discuss a bid on a national
high-speed wireless Internet system, the minister gave them
the cold shoulder, stating that Turkmenistan does not need or
want foreign-company involvement in the IT sector. Two weeks
later, the minister had been fired for incompetence by
President Berdimuhamedov. Midland is planning to bring its
Korean partners back to Turkmenistan for a meeting with the
new minister in hopes that he will be more amenable to a
contract than his predecessor.
2. (C) In the meantime, the company's Executive Vice
President of Development, Richard Visovsky, is working on
registering Midland and opening a new office in the Mir
neighborhood of Ashgabat. With President Berdimuhamedov's
attention now focused on other issues, however, the company
in general is finding that bureaucratic hassles are
increasing. In contrast, immediately following its feel-good
meeeting with the president, everything seemed to proceed
more smoothly. Most recently, the company has run into
problems getting a letter of invitation for its accountant,
who needs to be here to pay for the renovation of the office
space.
3. (C) COMMENT: Midland's experience in Turkmenistan is not
unique. Although the government is very slowly beginning to
roll out revamped new legislation -- including legislation
that is supposed to help improve the business climate -- a
significant gap remains between Western-style business
practices and the attitudes and actions in Turkmenistan. The
toughest part of promoting an improved investment climate
will be in changing the attitudes of those responsible for
implementing reform. END COMMENT.
HOAGLAND