Identifier | Created | Classification | Origin |
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08ASHGABAT996 | 2008-07-31 12:01:00 | CONFIDENTIAL | Embassy Ashgabat |
VZCZCXRO0372 PP RUEHAG RUEHBI RUEHCI RUEHLH RUEHPW RUEHROV DE RUEHAH #0996 2131201 ZNY CCCCC ZZH P 311201Z JUL 08 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC PRIORITY 1269 INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY RUCNCIS/CIS COLLECTIVE PRIORITY RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY RUEHAD/AMEMBASSY ABU DHABI PRIORITY 0412 RUEHAK/AMEMBASSY ANKARA PRIORITY 4100 RUEHBJ/AMEMBASSY BEIJING PRIORITY 1915 RUEHKL/AMEMBASSY KUALA LUMPUR PRIORITY 0207 RUEHKO/AMEMBASSY TOKYO PRIORITY 1780 RUEHIT/AMCONSUL ISTANBUL PRIORITY 2349 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 000996 |
1. (C) During a brief July 31 meeting, Chevron's AMCIT country manager told emboff that he had a very positive July 30 meeting with the Executive Director of Turkmenistan's State Agency for Management and Use of Hydrocarbon Resources, Bayrammurat Muradov. This was the second meeting between the two men in two weeks. Although Muradov had expressed doubts that a proposed visit by Chevron Vice President Jay Pryor would work for September 8, he promised to look for alternative dates in the first half of September, when President Berdimuhamedov would be available to meet with Pryor. Muradov also suggested that the State Agency will be ready to start discussing Chevron's proposal in seven to ten days. Although Muradov doubted that the State Agency would agree to a production sharing agreement (PSA), he believed that Turkmenistan would be willing to consider either a risk service agreement or joint venture. The Chevron country manager told emboff that his company would be willing to consider almost any type of agreement, which is long-term, would allow Chevron to book reserves, and would offer up a fair economic return, including either of the types that Muradov said might be possible. Grinning, the country manager parroted to emboff words that she had often told him -- that "it pays to be patient!" 2. (C) The Chevron representative also reported that the new U.S.-Turkmenistan Business Council had just held its first meeting in Washington. Chevron's Washington representative is the fledgling body's chairman. The council is working on a letter to Turkmenistan's Ambassador to the United Nations inviting President Berdimuhamedov to speak at a council lunch in New York when he attends the UN General Assembly session in September. 3. (C) COMMENT: Chevron has reason to be pleased: as reported reftels, it has been disappointed by the government's refusal up to now to begin negotiations on Chevron's proposal to work onshore, sub-salt gas fields. The fact that Muradov expects to be able to begin discussions in a week or so is the strongest indication yet that Berdimuhamedov may finally have taken in the crisis that Turkmenistan will shortly face in meeting its already contracted export commitments (septel) and has decided to reverse the country's ban on onshore production by foreign companies. But even if Turkmenistan is able to reach onshore production agreements relatively quickly with Chevron and other major oil companies (and this may be unlikely, given how long its negotiations with ConocoPhillips/Lukoil have dragged on), it will still face a five- to ten-year gap before those companies will be prepared to bring production into full gear. END COMMENT. CURRAN |