TURKMEN GOVERNMENT THROWS PARTY FOR ENERGY SECTOR

C O N F I D E N T I A L SECTION 01 OF 03 ASHGABAT 001184 SIPDIS STATE FOR SCA/CEN; EEB; NEA/IR ENERGY FOR EKIMOFF/BURPOE/COHEN COMMERCE FOR EHOUSE E.O. 12958: DECL: 09/16/2019 TAGS: EPET PGOV EINV ECON KS TX SUBJECT: TURKMEN GOVERNMENT THROWS PARTY FOR ENERGY SECTOR WORKERS Classified By: ADCM Peter Eckstrom, Reasons 1.4 (b) and (d). ¶1. (C) SUMMARY. On September 12 Economic Officer attended the Turkmen Oil and Gas Ministry's celebratory concert devoted to oil, gas, and electricity sector workers. The lavish event was held at the famous Ruhnama Park, named after former President Niyazov's epic "Ruhnama" which means "book of the soul" in Arabic. Turkmen Oil and Gas Industry and Mineral Resources Minister Annaguly Deryaev read an official greeting from President Berdimuhamedov before kicking off the festivities. The Turkmen President lauded the construction of the Turkmenistan - China pipeline as the "project of the century." Energy sector workers who had performed exceptionally well over the last year received large Korean-made plasma TVs for their service. A few local diplomats from other missions, including the South Korean Economic Counselor, attended, paving the way for discussions on the limited commercial opportunities for foreign companies, especially in the energy sector. The minute the concert ended, the crowd left the park and headed home, with only government officials and police left to mill about. END SUMMARY. BERDIMUHAMEDOV'S REMARKS MOSTLY ON PIPELINES ¶2. (C) Hours before the concert was to begin, hundreds of people began flocking to Ruhnama Park. Men were dressed in white shirts, dark pants and ties, while women had on long, modest, traditional Turkmen dresses. As with most government-sponsored events, attendance by energy sector workers was mandatory. Minister of Oil and Gas Industry and Mineral Resources Annaguly Deryaev opened the concert by reading lengthy, congratulatory remarks from President Berdimuhamedov. In the remarks, Berdimuhamedov referred to Turkmenistan's 2030 plan for the oil and gas industry, calling for the immediate acceleration of exploration and the development of existing gas and oil fields. He hailed the construction of the Turkmenistan - China pipeline as the "project of the century." In addition, he stressed that the proposed Turkmenistan-Afghanistan-Pakistan-India Pipeline (TAPI) has great potential if conditions for its implementation were created. The Turkmen president also used the occasion to repeat his insistence that Turkmenistan has �A;enough gas reserves available to participate in the Nabucco Pipeline, noting that reserves in the South Yoloten and Yashlar gas fields are adequate for supplying long-term projects. He added that the construction of power generation plants had been completed, and these new facilities would supply electricity to the Avaza, Ashgabat, Ahal, and Balkan provinces. KOREAN BIG SCREEN TVS FOR EXCEPTIONAL PERFORMANCE ¶3. (C) Following the reading of the presidential remarks, energy workers who performed exceptionally well over the year were called onto the stage to receive their awards. The citations for each award were the same: "for exceptional performance," with no additional explanation. In addition to a diploma-like certificate that included a picture of President Berdimuhamedov, the awardees also received large, LG brand plasma televisions, wrapped in shiny, green gift paper. The first recipient, who was large in stature, was able to carry his television back to his seat by himself; however, the second recipient, who was much smaller, dropped his TV, triggering the Minister of Oil and Gas to order two young men to assist every additional recipient in getting their new TVs back to their seats safely. A lively discussion (in Russian) among Turkmengaz officials seated behind us ensued over whether a plasma TV or an LCD was ASHGABAT 00001184 002 OF 003 higher quality. The same Turkmengaz officials opined that next year's prizes would have to be better than plasma TVs, as the President likes to give energy sector workers better gifts from year-to-year. A CONCERT AND A BOTCHED LASER SHOW ¶4. (C) Once the awards had been delivered, a concert followed. Musicians, singers, and dancers performed patriotic numbers in honor of the energy workers. As a result, some of the numbers included: "Oil and Gas Flow as the River," "My Native Land Rich with Oil and Gas," and "The Glorious Motherland." After nine musical numbers and one dance performance, the energy sector workers were treated to an elaborate laser show that reflected important Turkmen emblems, including several Turkmen horses, running across a field that turned into a map of Turkmenistan. As the crowd ooh'd and aah'd over the special effects, the power suddenly went out, returning after a minute, but IT experts were unable to resume the end of the laser show. Turkmengaz representatives commented "the IT people responsible for the botched laser show would no doubt lose their jobs come Monday." As organizers struggled to get the concert back on track after the electricity outage, members of the diplomatic corps were hastily escorted to a traditional Turkmen dinner held in a round, Turkmen tent or "yurt." The yurt was decked wall-to-wall with expensive Turkmen carpets, and a chandelier and air conditioning unit provided the guests with modern comforts. LOCAL DIPLOMATS DOWNBEAT ON FOREIGN INVESTMENT CLIMATE ¶5. (C) During the dinner, a handful of diplomats discussed foreign investment opportunities in Turkmenistan. Korean Embassy Economic Counselor Joo-Ik Park was particularly downbeat on Korean prospects in Turkmenistan. Park stated that Hyundai had recently sold 500 white, city buses to the GOTX, as well as 30 green, luxury busses for government official use, but other Korean companies were not doing so well. He remarked that Korean giants like Daewoo were unable to make any headway in the lucrative energy sector, and even electronic companies like Samsung and LG were experiencing major push back from the GOTX to complete "simple MOUs." Park felt that Russian and Turkish dominance in the energy, construction, and commodity sectors had made it more difficult for South Korea to break through. Azerbaijani Diplomat Azad Pashayev expressed his disappointment that the Caspian delimitation issue between Turkmenistan and Azerbaijan had overshadowed the two countries' positive commercial relations. Pashayev stated that a resolution of the Caspian delimitation issue would allow both countries to take advantage of multimillion dollar energy projects in the Caspian. Pashayev admitted that Azerbaijani interest in Turkmen markets outside of energy was not very high at the moment. ¶6. (C) COMMENT. The annual gas, oil, and electricity workers concert was a Soviet-style event, albeit with a distinctively Turkmen flair, where attendance by energy sector workers was mandatory. We noticed that when the final number had concluded, attendees immediately rushed out of the park and headed straight home; leaving only government officials and police in the park. Although some energy sector workers received TVs for their work, most attendees at the event have low-paid jobs and little technical education to help them gain more favorable employment. To date, the Turkmen government insists that Turkmen, as opposed to foreign companies, should develop the country's energy resources. However, the Turkmen government does not yet have the ASHGABAT 00001184 003 OF 003 technology or technically-skilled employees to properly achieve this goal. At the same time, few foreign companies have been able to convince the GOTX that foreign investment, technology, and know-how are essential if Turkmenistan truly wants to be more than a country "potentially rich" in gas and oil. END COMMENT. CURRAN