Identifier
Created
Classification
Origin
08ASHGABAT903
2008-07-17 10:59:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
TURKMENISTAN: PETRONAS NATURAL GAS PRODUCTION TO
how-toVZCZCXRO9691 PP RUEHAG RUEHBI RUEHCI RUEHLH RUEHPW RUEHROV DE RUEHAH #0903 1991059 ZNY CCCCC ZZH P 171059Z JUL 08 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC PRIORITY 1175 INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY RUCNCIS/CIS COLLECTIVE PRIORITY RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY RUEHAD/AMEMBASSY ABU DHABI PRIORITY 0397 RUEHAK/AMEMBASSY ANKARA PRIORITY 4034 RUEHBJ/AMEMBASSY BEIJING PRIORITY 1851 RUEHKL/AMEMBASSY KUALA LUMPUR PRIORITY 0192 RUEHKO/AMEMBASSY TOKYO PRIORITY 1718 RUEHIT/AMCONSUL ISTANBUL PRIORITY 2287 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 000903
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 07/17/2018
TAGS: PREL PGOV EPET TX
SUBJECT: TURKMENISTAN: PETRONAS NATURAL GAS PRODUCTION TO
BE LOWER THAN ORIGINALLY PLANNED
Classified By: Charge d'Affaires Sylvia Reed Curran for reasons 1.4(b)
and (d).
C O N F I D E N T I A L ASHGABAT 000903
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 07/17/2018
TAGS: PREL PGOV EPET TX
SUBJECT: TURKMENISTAN: PETRONAS NATURAL GAS PRODUCTION TO
BE LOWER THAN ORIGINALLY PLANNED
Classified By: Charge d'Affaires Sylvia Reed Curran for reasons 1.4(b)
and (d).
1. (C) During a July 15 meeting, Malaysian petroleum firm
Petronas general manager in Turkmenistan Mohammed Ridzan
Mohammed Sharif told emboff that his company is now planning
on producing only 5 billion cubic meters of natural gas per
year in Turkmenistan's block I (Livanov). (NOTE: This
statement is contrary to estimates of 10 bcm that Sharif's
predecessor, Abdullah Suleiman, previously gave emboff. END
NOTE.) According to Sharif, the company could drill at more
sites, but this would increase the overall cost, making
higher production economically unattractive. Consequently,
Petronas has scaled back plans for the gas processing plant
it is building on Turkmenistan's Caspian coast north of
Turkmenbashy. The plant will now handle only 5 bcm of gas
per year.
2. (C) Sharif expanded on this report during a July 16
meeting with U.S. Trade and Development Agency Regional
Director for Europe and Eurasia Dan Stein, stating that the
Livanov field has been certified as being able to produce
only 5 bcm of gas per year. The problem is that the Livanov
structure is highly faulted. The gas is contained in a
series of compartments that would require multiple drilling
sites. For now, Sharif seems to be resigned to produce
smaller-than-expected volumes of gas. He added that Petronas
could seek certification for larger volumes if the cost
structures were to make the additional drilling sites
economically attractive and could probably bring those new
sites on board within three years. However, Sharif welcomed
the possibility of contributing gas to either a trans-Caspian
pipeline or an interconnector pipeline to Azerbaijan. Sharif
added that his company is now producing 7000 barrels of oil
per day.
3. (C) COMMENT: This news will have serious implications
for plans for an interconnector pipeline. Even if Sharif is
only being conservative in his estimates, the large gas
production volume Petronas was initially projecting would
have allowed Turkmenistan to satisfy the demands of both a
Caspian littoral pipeline (northward) and an interconnector
pipeline to Azerbaijan. Until the economics change or unless
Petronas is able to find additional large fields, an
interconnector pipeline may find itself competing with the
Caspian littoral for the limited natural gas available from
the Caspian. END COMMENT.
CURRAN
SIPDIS
STATE FOR SCA/CEN, EEB
PLEASE PASS TO USTDA DAN STEIN
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER
E.O. 12958: DECL: 07/17/2018
TAGS: PREL PGOV EPET TX
SUBJECT: TURKMENISTAN: PETRONAS NATURAL GAS PRODUCTION TO
BE LOWER THAN ORIGINALLY PLANNED
Classified By: Charge d'Affaires Sylvia Reed Curran for reasons 1.4(b)
and (d).
1. (C) During a July 15 meeting, Malaysian petroleum firm
Petronas general manager in Turkmenistan Mohammed Ridzan
Mohammed Sharif told emboff that his company is now planning
on producing only 5 billion cubic meters of natural gas per
year in Turkmenistan's block I (Livanov). (NOTE: This
statement is contrary to estimates of 10 bcm that Sharif's
predecessor, Abdullah Suleiman, previously gave emboff. END
NOTE.) According to Sharif, the company could drill at more
sites, but this would increase the overall cost, making
higher production economically unattractive. Consequently,
Petronas has scaled back plans for the gas processing plant
it is building on Turkmenistan's Caspian coast north of
Turkmenbashy. The plant will now handle only 5 bcm of gas
per year.
2. (C) Sharif expanded on this report during a July 16
meeting with U.S. Trade and Development Agency Regional
Director for Europe and Eurasia Dan Stein, stating that the
Livanov field has been certified as being able to produce
only 5 bcm of gas per year. The problem is that the Livanov
structure is highly faulted. The gas is contained in a
series of compartments that would require multiple drilling
sites. For now, Sharif seems to be resigned to produce
smaller-than-expected volumes of gas. He added that Petronas
could seek certification for larger volumes if the cost
structures were to make the additional drilling sites
economically attractive and could probably bring those new
sites on board within three years. However, Sharif welcomed
the possibility of contributing gas to either a trans-Caspian
pipeline or an interconnector pipeline to Azerbaijan. Sharif
added that his company is now producing 7000 barrels of oil
per day.
3. (C) COMMENT: This news will have serious implications
for plans for an interconnector pipeline. Even if Sharif is
only being conservative in his estimates, the large gas
production volume Petronas was initially projecting would
have allowed Turkmenistan to satisfy the demands of both a
Caspian littoral pipeline (northward) and an interconnector
pipeline to Azerbaijan. Until the economics change or unless
Petronas is able to find additional large fields, an
interconnector pipeline may find itself competing with the
Caspian littoral for the limited natural gas available from
the Caspian. END COMMENT.
CURRAN