Identifier
Created
Classification
Origin
09ASHGABAT1117
2009-09-02 12:59:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: PETROCHINA TO TAKE OVER AMU DARYA PROJECT
how-toVZCZCXRO6921 PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ RUEHNEH RUEHPW RUEHROV RUEHSK RUEHSL RUEHSR RUEHVK RUEHYG DE RUEHAH #1117 2451259 ZNR UUUUU ZZH P 021259Z SEP 09 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC 3399 INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE RUCNCIS/CIS COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUEHAK/AMEMBASSY ANKARA 5618 RUEHBJ/AMEMBASSY BEIJING 3337 RUEHKO/AMEMBASSY TOKYO 3201 RUEHIT/AMCONSUL ISTANBUL 3861 RUCNDT/USMISSION USUN NEW YORK 1120 RHMCSUU/CDR USCENTCOM MACDILL AFB FL RUEHVEN/USMISSION USOSCE 3861 RUEAIIA/CIA WASHDC RHEFDIA/DIA WASHDC RHEHNSC/NSC WASHDC RUEKJCS/SECDEF WASHDC RUEKJCS/JOINT STAFF WASHDC
UNCLAS ASHGABAT 001117
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB; NEA/IR
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE
E.O. 12958: N/A
TAGS: EPET PGOV EINV ECON TX
SUBJECT: TURKMENISTAN: PETROCHINA TO TAKE OVER AMU DARYA PROJECT
REF: ASHGABAT 1071
UNCLAS ASHGABAT 001117
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB; NEA/IR
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE
E.O. 12958: N/A
TAGS: EPET PGOV EINV ECON TX
SUBJECT: TURKMENISTAN: PETROCHINA TO TAKE OVER AMU DARYA PROJECT
REF: ASHGABAT 1071
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) A number of international media outlets reported this week
that PetroChina will acquire assets from the Chinese National
Petroleum Corporation (CNPC),PetroChina's parent company, including
CNPC's share in the Amu Darya project. The Amu Darya project, or as
the Turkmen call the Bagtyarlyk project, is a group of fields
developed by CNPC under a production sharing agreement and is
expected to supply up to 13 bcm of gas per year to the Central Asia
- China pipeline (reftel).
3. (SBU) At the end of 2007, Italian ENI purchased the UK-based
Burren Energy Company, which holds a license to develop the Nebitdag
contractual territory under a production sharing agreement in
Turkmenistan. The Turkmen government reacted negatively to the
unexpected new ownership, with the State Agency for Management and
Use of Hydrocarbon Resources demanding explanations from the Burren
Energy management. In addition, the Turkmen State Migration Service
reportedly denied entry visas to ENI staff as a result of the deal.
The Turkmen Government maintained that Burren Energy should have
coordinated and sought GOTX approval before selling to a new
company. ENI eventually resolved the issue through special
negotiations with the GOTX, but details of possible ENI concessions
were not released.
4. (SBU) To date, there has been no official comment from the
Government of Turkmenistan regarding the planned CNPC/PetroChina
deal. But according to a Ministry of Oil and Gas official, the
Turkmen Government will react calmly to the deal, as the Chinese
companies have proved to be very skillful in doing business without
displeasing the Turkmen Government. This official also asserted
that the Chinese most likely vetted the deal with the Turkmen
Government, learning from ENI's unpleasant experience in 2007.
5. (SBU) COMMENT: The Turkmen Government views the Amu Darya
project more as a bilateral agreement, rather than a commercial deal
between Turkmenistan and CNPC. Since the Chinese Government
exercises full control of PetroChina and owns more than 85 percent
of shares in CNPC, the Turkmen Government is unlikely to oppose the
deal or create difficulties for its new Chinese partner. In
addition, the Chinese have shown skill in managing their
relationship with the Turkmen, and would not likely sanction any
action that would damage their good standing. END COMMENT.
CURRAN
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB; NEA/IR
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE
E.O. 12958: N/A
TAGS: EPET PGOV EINV ECON TX
SUBJECT: TURKMENISTAN: PETROCHINA TO TAKE OVER AMU DARYA PROJECT
REF: ASHGABAT 1071
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) A number of international media outlets reported this week
that PetroChina will acquire assets from the Chinese National
Petroleum Corporation (CNPC),PetroChina's parent company, including
CNPC's share in the Amu Darya project. The Amu Darya project, or as
the Turkmen call the Bagtyarlyk project, is a group of fields
developed by CNPC under a production sharing agreement and is
expected to supply up to 13 bcm of gas per year to the Central Asia
- China pipeline (reftel).
3. (SBU) At the end of 2007, Italian ENI purchased the UK-based
Burren Energy Company, which holds a license to develop the Nebitdag
contractual territory under a production sharing agreement in
Turkmenistan. The Turkmen government reacted negatively to the
unexpected new ownership, with the State Agency for Management and
Use of Hydrocarbon Resources demanding explanations from the Burren
Energy management. In addition, the Turkmen State Migration Service
reportedly denied entry visas to ENI staff as a result of the deal.
The Turkmen Government maintained that Burren Energy should have
coordinated and sought GOTX approval before selling to a new
company. ENI eventually resolved the issue through special
negotiations with the GOTX, but details of possible ENI concessions
were not released.
4. (SBU) To date, there has been no official comment from the
Government of Turkmenistan regarding the planned CNPC/PetroChina
deal. But according to a Ministry of Oil and Gas official, the
Turkmen Government will react calmly to the deal, as the Chinese
companies have proved to be very skillful in doing business without
displeasing the Turkmen Government. This official also asserted
that the Chinese most likely vetted the deal with the Turkmen
Government, learning from ENI's unpleasant experience in 2007.
5. (SBU) COMMENT: The Turkmen Government views the Amu Darya
project more as a bilateral agreement, rather than a commercial deal
between Turkmenistan and CNPC. Since the Chinese Government
exercises full control of PetroChina and owns more than 85 percent
of shares in CNPC, the Turkmen Government is unlikely to oppose the
deal or create difficulties for its new Chinese partner. In
addition, the Chinese have shown skill in managing their
relationship with the Turkmen, and would not likely sanction any
action that would damage their good standing. END COMMENT.
CURRAN