Identifier
Created
Classification
Origin
08ASHGABAT744
2008-06-11 09:55:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:  

TURKMENISTAN'S OIL EXHIBITION AND CONFERENCE: A LESS THAN

Tags:  PGOV PREL EPET TX 
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P 110955Z JUN 08
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UNCLAS ASHGABAT 000744 

SENSITIVE
SIPDIS

STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
COMMERCE FOR HUEPER
ENERGY FOR EKIMOFF/THOMPSON

E.O. 12958: N/A
TAGS: PGOV PREL EPET TX
SUBJECT: TURKMENISTAN'S OIL EXHIBITION AND CONFERENCE: A LESS THAN
SUCCESSFUL EVENT

UNCLAS ASHGABAT 000744

SENSITIVE
SIPDIS

STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
COMMERCE FOR HUEPER
ENERGY FOR EKIMOFF/THOMPSON

E.O. 12958: N/A
TAGS: PGOV PREL EPET TX
SUBJECT: TURKMENISTAN'S OIL EXHIBITION AND CONFERENCE: A LESS THAN
SUCCESSFUL EVENT


1. (U) Sensitive but unclassified. Not for public Internet.


2. SUMMARY. (SBU) On June 6-7, the Government of Turkmenistan held
the Exploration of Oil Fields, Oil Production, Refining, and
Petrochemicals Exhibition and International Conference. This was
the second of three separate events Turkmenistan's petroleum
leadership decided to hold this year. According to Turkmenistan's
officials, over 50 companies participated in the conference and some
67 firms in the exhibition. However, most industry experts agreed
that both events had little value except for offering an opportunity
for non-resident firms to return to Ashgabat and meet with
government officials. END SUMMARY.

GOVERNMENT SPEAKERS


3. (SBU) Government presentations concentrated mainly on technical
production and refining issues and/or specific fields. Turkmennebit
(Turkmenoil) Chairman Tashliyev spoke on priorities for cooperation
with foreign companies. Not surprisingly, in Tashliyev's view, such
cooperation only includes drillin and drilling rigs and equipment,
production pumps, well work-over, and related machinery supplies.
Tashliyev asserted that Turkmenistan's resources in the Caspian
amount to 12 billion tons of oil and 5.5 trillion cubic meters of
natural gas, but did not even mention his company's oil production
performance for 2007.


4. (SBU) The presentation by Turkmenbashy Refinery's Deputy Chief
Engineer Vladimir Tuvakov was probably the only interesting Turkmen
presentation. Tuvakov reported that the refinery processed about
6.3 million tons of crude. (NOTE: Turkmen government statistics
indicate that the country's 2007 overall crude production was 9.8
million. Turkmenistan's other refining facility at Seydi currently
processes around 1 million tons of oil a year, thus leaving 2.5
million to PSA holders. END NOTE.) Gasoline production in 2007 was
1.7 million tons, including around 0.9 million tons of 80-octane
gasoline, 0.36 million tons of 92-octane gasoline and 0.48 million
tons of 95-octane gasoline. The refinery plans to refine about
0.846 tons of 92 and 95-octane gasoline in 2008. According to
Tuvakov, Turkmenbashy Refinery's gasoline does not conform to the
Euro-2005 standard.

U.S. PARTICIPATION


5. (SBU) None of the major American oil firms exhibited at the
event. However, ExxonMobil and BP made presentations respectively
on periodic 4-D seismic reservoir monitoring and oil processing
technology, and well-completion technology in the Caspian. Chevron,
Marathon, and ConocoPhillips -- all of which are currently pursuing
deals in Turkmenistan -- did not exhibit or participate in the
conference.


6. COMMENT: (SBU) Like its forerunner in March, this year's second
specialized petroleum event has been less than successful. The
conference planner, a Russian firm, started advertising the event
only about three weeks prior to the exhibit, leaving most foreign
firms with insufficient time to import exhibits, although Russian,
Chinese, and Turkish firms were all well represented. Many
participants shared their disappointment with exhibition and
conference organizers. The head of the local Chevron office
dismissed the event as "one more beauty pageant." However, like the
March event, it did offer representatives from non-resident firms a
chance to visit Turkmenistan and hold discussions with the
Government and/or industry contacts. END COMMENT.

HOAGLAND

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