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
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

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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