Identifier
Created
Classification
Origin
08ASHGABAT740
2008-06-10 10:52:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
TURKMENISTAN: EXXONMOBIL INCHING FORWARD
how-toVZCZCXRO5304 PP RUEHAG RUEHBI RUEHCI RUEHLH RUEHPW RUEHROV DE RUEHAH #0740 1621052 ZNY CCCCC ZZH P 101052Z JUN 08 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC PRIORITY 0972 INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY RUCNCIS/CIS COLLECTIVE PRIORITY RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY RUEHAD/AMEMBASSY ABU DHABI PRIORITY 0362 RUEHAK/AMEMBASSY ANKARA PRIORITY 3891 RUEHBJ/AMEMBASSY BEIJING PRIORITY 1708 RUEHKL/AMEMBASSY KUALA LUMPUR PRIORITY 0163 RUEHKO/AMEMBASSY TOKYO PRIORITY 1575 RUEHIT/AMCONSUL ISTANBUL PRIORITY 2144 RUEHBS/USEU BRUSSELS PRIORITY 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 000740
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
USEU FOR SPECIAL ENVOY GRAY
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 06/09/2018
TAGS: PREL PGOV EPET TX
SUBJECT: TURKMENISTAN: EXXONMOBIL INCHING FORWARD
Classified By: CDA RICHARD E. HOAGLAND: 1.4(B),(D).
C O N F I D E N T I A L ASHGABAT 000740
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
USEU FOR SPECIAL ENVOY GRAY
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 06/09/2018
TAGS: PREL PGOV EPET TX
SUBJECT: TURKMENISTAN: EXXONMOBIL INCHING FORWARD
Classified By: CDA RICHARD E. HOAGLAND: 1.4(B),(D).
1. (C) ExxonMobil's Caspian Manager Rob YOung (please
protect) told the Charge June 6 that his company is still
hoping to get a contract to work in Turkmenistan's onshore
gas fields, but has not yet submitted a bid. ExxonMobil
wants to get a better sense of what the Government of
Turkmenistan wants, and will tailor its bid to meet those
requirements. "If they want us to call ourselves a
contractor, we'll do it," he said, though ExxonMobil needs to
be able to book proven reserves as a basis for any contract.
ExxonMobil understands the need to reassure the government
about its intentions, and so the company is pushing for a
meeting for its Executive Vice President of Exploration with
President Berdimuhamedov. It also is planning a series of
technical workshops to allow Turkmenistan's hydrocarbon
experts to see the depth of ExxonMobil's technical expertise.
Once the company sees whether there is a basis for business,
it will establish a small office with two expatriate
personnel.
2. (C) According to Young, ExxonMobil sees a niche for
itself in Turkmenistan's energy sector. Reminding the Charge
that ExxonMobil is the largest privately owned producer of
electricity in the world, he said that his company wants to
package its services as an extraction-to-power producer.
ExxonMobil would simply propose to expand the electrical
production facilities that it would need to power its
facilities to include electricity for Turkmenistan's people.
ExxonMobil is also hoping to bring to the bargaining table
its technology for reinjecting H2S to maintain the well's
pressure, rather than dumping tons of sulphur on the surface,
as has been done in Kazakhstan.
3. (C) COMMENT: ExxonMobil's slow, deliberate pace of
engagement with Turkmenistan's authorities is a gamble. It
is behind Chevron, which also wants to work onshore, and
other players like Marathon (septel) are coming on stage.
Turkmen officials are slow, cautious, and inexperienced
dealing with Western energy majors, fearing they'll be taken
advantage of. But we are encouraged they continue to climb
their learning curve. Positive decisions won't come
overnight, but we are confident they will, indeed, come. END
COMMENT.
HOAGLAND
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
USEU FOR SPECIAL ENVOY GRAY
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 06/09/2018
TAGS: PREL PGOV EPET TX
SUBJECT: TURKMENISTAN: EXXONMOBIL INCHING FORWARD
Classified By: CDA RICHARD E. HOAGLAND: 1.4(B),(D).
1. (C) ExxonMobil's Caspian Manager Rob YOung (please
protect) told the Charge June 6 that his company is still
hoping to get a contract to work in Turkmenistan's onshore
gas fields, but has not yet submitted a bid. ExxonMobil
wants to get a better sense of what the Government of
Turkmenistan wants, and will tailor its bid to meet those
requirements. "If they want us to call ourselves a
contractor, we'll do it," he said, though ExxonMobil needs to
be able to book proven reserves as a basis for any contract.
ExxonMobil understands the need to reassure the government
about its intentions, and so the company is pushing for a
meeting for its Executive Vice President of Exploration with
President Berdimuhamedov. It also is planning a series of
technical workshops to allow Turkmenistan's hydrocarbon
experts to see the depth of ExxonMobil's technical expertise.
Once the company sees whether there is a basis for business,
it will establish a small office with two expatriate
personnel.
2. (C) According to Young, ExxonMobil sees a niche for
itself in Turkmenistan's energy sector. Reminding the Charge
that ExxonMobil is the largest privately owned producer of
electricity in the world, he said that his company wants to
package its services as an extraction-to-power producer.
ExxonMobil would simply propose to expand the electrical
production facilities that it would need to power its
facilities to include electricity for Turkmenistan's people.
ExxonMobil is also hoping to bring to the bargaining table
its technology for reinjecting H2S to maintain the well's
pressure, rather than dumping tons of sulphur on the surface,
as has been done in Kazakhstan.
3. (C) COMMENT: ExxonMobil's slow, deliberate pace of
engagement with Turkmenistan's authorities is a gamble. It
is behind Chevron, which also wants to work onshore, and
other players like Marathon (septel) are coming on stage.
Turkmen officials are slow, cautious, and inexperienced
dealing with Western energy majors, fearing they'll be taken
advantage of. But we are encouraged they continue to climb
their learning curve. Positive decisions won't come
overnight, but we are confident they will, indeed, come. END
COMMENT.
HOAGLAND