Identifier
Created
Classification
Origin
09ASHGABAT1312
2009-10-16 06:40:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
TURKMENISTAN: EXXONMOBIL STILL MOVING FORWARD
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C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001312
SIPDIS
STATE FOR SCA/CEN; EEB; NEA/IR
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE
E.O. 12958: DECL: 10/16/2019
TAGS: EPET ECON PGOV EINV BTIO TX
SUBJECT: TURKMENISTAN: EXXONMOBIL STILL MOVING FORWARD
REF: ASHGABAT 1141
Classified By: Charge Sylvia Reed Curran for reasons 1.4 (b) and (d).
C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001312
SIPDIS
STATE FOR SCA/CEN; EEB; NEA/IR
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE
E.O. 12958: DECL: 10/16/2019
TAGS: EPET ECON PGOV EINV BTIO TX
SUBJECT: TURKMENISTAN: EXXONMOBIL STILL MOVING FORWARD
REF: ASHGABAT 1141
Classified By: Charge Sylvia Reed Curran for reasons 1.4 (b) and (d).
1. (C) SUMMARY. On October 14 ExxonMobil representatives met
with the Charge to discuss recent meetings between company
executives and Turkmen President Berdimuhamedov in New York
on the margins of the UN General Assembly. ExxonMobil
representatives described the meetings as "a little positive,
but far from spectacular." They were encouraged by the
interaction ExxonMobil's CEO had with Berdimuhamedov and are
planning to have their CEO visit Ashgabat this spring for
more face-to-face talks with the President. They noted they
understood any business relationship in the country begins or
ends with the Turkmen President. In addition, company reps
told us they were beginning the process of registering an
office in Ashgabat, adding that they were waiting to see how
the meeting with the President went in New York before
committing to an office. END SUMMARY.
2. (C) ExxonMobil reps stated that Berdimuhamedov began his
meeting with their CEO by reviewing the GOTX's current policy
that foreign energy companies pursue either offshore
exploration blocks or onshore service contracts. The reps
added that Berdimuhamedov would not budge from this position.
Although ExxonMobil has not discounted working on the
offshore, the company reps told us that entering onshore
service contracts was not something the company would pursue
at this time. In addition, the company reps indicated that
their strategy for now is to continue to press the GOTX for a
waiver in order to explore the more lucrative onshore.
3. (C) When recounting the company's meeting with
Berdimuhamedov in New York, the reps told the Charge that
they were told the President would meet with them for 30
minutes, but the meeting actually lasted an hour and 15
minutes. They noted that Berdimuhamedov was accompanied by
Deputy Chairman for Oil and Gas Hojamuhammedov, Foreign
Minister Meredov, and Head of the State Agency for the
Management and Use of Hydrocarbon Resources Kakayev.
According to the reps, Berdimuhamedov took charge of the
meeting and the three other officials were attentive and
nodding accordingly when the President looked their way. The
reps mentioned it was the most subdued they had ever been in
official meetings.
4. (C) According to the reps, Italian energy company ENI's
meeting with the President lasted only about 10 minutes, but
given rumors that ENI is on the President's bad list, they
added, even 10 minutes was not too bad. (NOTE: ENI bought
Burren Energy which had a PSA with the GOTX without first
consulting with the Turkmen government, thus putting ENI on
the GOTX black list. END NOTE.) The ExxonMobil reps also
mentioned that U.S. companies Boeing and Case New Holland
seemed to be getting the lion's share of the President's time
at the luncheon for U.S. companies. The reps added that they
planned to "step up their game" the next time the company had
access to the President, as other U.S. companies were already
more aggressive than ExxonMobil when it came to courting the
Turkmen President.
5. (C) ExxonMobil reps stated that they had decided to open
an office after the New York meetings and were beginning the
process to find a suitable office and get it registered.
Acknowledging that the process to register an office can take
months to a year, the ExxonMobil reps were nonetheless
confident that having an office and an expatriot on the
ground were necessary steps for doing business with the
Turkmen. The company plans to have an expatriot direct the
office while hiring a local #2 person to mitigate local and
regional issues. According to the reps, the new office will
ASHGABAT 00001312 002 OF 002
provide ExxonMobil with the necessary home field advantage
they lost since they pulled out of Turkmenistan in 2002
(reftel).
6. (C) The company reps opined that the GOTX had forgiven the
company for leaving seven years ago, but local contacts
predict that ExxonMobil will need to really prove itself
before it can regain the President's confidence. According
to the reps, the company plans to send its CEO to Ashgabat
this spring to meet the President and hopefully sign a deal.
They were confident that their business proposals and the
prestige the ExxonMobil name would bring to Turkmenistan
would be attractive to the President.
7. (C) COMMENT. ExxonMobil reps were not terribly
enthusiastic about the results of their CEO's meeting with
the Turkmen President. At the same time, they seemed
committed to establishing an official presence in Ashgabat
for the second time. Until recently Chevron was the only
major U.S. energy company on the ground in Ashgabat, but
ExxonMobil and ConocoPhillips are in the process of opening
offices as well. Time will tell what the GOTX reaction to
increased U.S. interest in Turkmenistan's energy sector will
be, but it is unlikely that President Berdimuhamedov would
shun the increased attention from U.S. conpanies that he has
received since his trip to New York. END COMMENT.
CURRAN
SIPDIS
STATE FOR SCA/CEN; EEB; NEA/IR
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE
E.O. 12958: DECL: 10/16/2019
TAGS: EPET ECON PGOV EINV BTIO TX
SUBJECT: TURKMENISTAN: EXXONMOBIL STILL MOVING FORWARD
REF: ASHGABAT 1141
Classified By: Charge Sylvia Reed Curran for reasons 1.4 (b) and (d).
1. (C) SUMMARY. On October 14 ExxonMobil representatives met
with the Charge to discuss recent meetings between company
executives and Turkmen President Berdimuhamedov in New York
on the margins of the UN General Assembly. ExxonMobil
representatives described the meetings as "a little positive,
but far from spectacular." They were encouraged by the
interaction ExxonMobil's CEO had with Berdimuhamedov and are
planning to have their CEO visit Ashgabat this spring for
more face-to-face talks with the President. They noted they
understood any business relationship in the country begins or
ends with the Turkmen President. In addition, company reps
told us they were beginning the process of registering an
office in Ashgabat, adding that they were waiting to see how
the meeting with the President went in New York before
committing to an office. END SUMMARY.
2. (C) ExxonMobil reps stated that Berdimuhamedov began his
meeting with their CEO by reviewing the GOTX's current policy
that foreign energy companies pursue either offshore
exploration blocks or onshore service contracts. The reps
added that Berdimuhamedov would not budge from this position.
Although ExxonMobil has not discounted working on the
offshore, the company reps told us that entering onshore
service contracts was not something the company would pursue
at this time. In addition, the company reps indicated that
their strategy for now is to continue to press the GOTX for a
waiver in order to explore the more lucrative onshore.
3. (C) When recounting the company's meeting with
Berdimuhamedov in New York, the reps told the Charge that
they were told the President would meet with them for 30
minutes, but the meeting actually lasted an hour and 15
minutes. They noted that Berdimuhamedov was accompanied by
Deputy Chairman for Oil and Gas Hojamuhammedov, Foreign
Minister Meredov, and Head of the State Agency for the
Management and Use of Hydrocarbon Resources Kakayev.
According to the reps, Berdimuhamedov took charge of the
meeting and the three other officials were attentive and
nodding accordingly when the President looked their way. The
reps mentioned it was the most subdued they had ever been in
official meetings.
4. (C) According to the reps, Italian energy company ENI's
meeting with the President lasted only about 10 minutes, but
given rumors that ENI is on the President's bad list, they
added, even 10 minutes was not too bad. (NOTE: ENI bought
Burren Energy which had a PSA with the GOTX without first
consulting with the Turkmen government, thus putting ENI on
the GOTX black list. END NOTE.) The ExxonMobil reps also
mentioned that U.S. companies Boeing and Case New Holland
seemed to be getting the lion's share of the President's time
at the luncheon for U.S. companies. The reps added that they
planned to "step up their game" the next time the company had
access to the President, as other U.S. companies were already
more aggressive than ExxonMobil when it came to courting the
Turkmen President.
5. (C) ExxonMobil reps stated that they had decided to open
an office after the New York meetings and were beginning the
process to find a suitable office and get it registered.
Acknowledging that the process to register an office can take
months to a year, the ExxonMobil reps were nonetheless
confident that having an office and an expatriot on the
ground were necessary steps for doing business with the
Turkmen. The company plans to have an expatriot direct the
office while hiring a local #2 person to mitigate local and
regional issues. According to the reps, the new office will
ASHGABAT 00001312 002 OF 002
provide ExxonMobil with the necessary home field advantage
they lost since they pulled out of Turkmenistan in 2002
(reftel).
6. (C) The company reps opined that the GOTX had forgiven the
company for leaving seven years ago, but local contacts
predict that ExxonMobil will need to really prove itself
before it can regain the President's confidence. According
to the reps, the company plans to send its CEO to Ashgabat
this spring to meet the President and hopefully sign a deal.
They were confident that their business proposals and the
prestige the ExxonMobil name would bring to Turkmenistan
would be attractive to the President.
7. (C) COMMENT. ExxonMobil reps were not terribly
enthusiastic about the results of their CEO's meeting with
the Turkmen President. At the same time, they seemed
committed to establishing an official presence in Ashgabat
for the second time. Until recently Chevron was the only
major U.S. energy company on the ground in Ashgabat, but
ExxonMobil and ConocoPhillips are in the process of opening
offices as well. Time will tell what the GOTX reaction to
increased U.S. interest in Turkmenistan's energy sector will
be, but it is unlikely that President Berdimuhamedov would
shun the increased attention from U.S. conpanies that he has
received since his trip to New York. END COMMENT.
CURRAN