TURKMENISTAN: RUSSIAN MEDIA LIKELY DISTORTED ENERGY SECTOR

UNCLAS ASHGABAT 001369 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 RS TX SUBJECT: TURKMENISTAN: RUSSIAN MEDIA LIKELY DISTORTED ENERGY SECTOR RESHUFFLE REF: ASHGABAT 1295 ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) A number of international media outlets, initially Russian, have linked recent changes in the Turkmen energy sector's leadership (reftel) with allegations that high-ranking oil and gas officials had passed classified geological data, related to the South Yoloten field, to foreign companies. In Turkmenistan, the recent Russian media reports were seen as nothing more than Russian sensationalism designed to discredit Turkmenistan. Rumors about a reshuffling among the Turkmen oil and gas leadership were already circulating in Ashgabat months before President Berdimuhamedov's recent announcement of the changes. According to a Ministry of Oil and Gas official, the new appointments reflect the intention of recently appointed Deputy Chairman for Oil and Gas Baymyrat Hojamuhammedov's to create a new team of oil and gas leaders. ¶3. (SBU) Turkmen energy experts pointed out that Turkmennebit (the state oil concern) and the Turkmen State Oil and Gas Construction Concern, the chairmen of which were replaced, had nothing to do with South Yoloten. They added that Berdimuhamedov appointed a new chairman to head Turkmengaz because that position had been vacant for three months. ¶4. (SBU) COMMENT. The Gaffney Cline audit of the South Yoloten field remains the most competent assessment of its potential reserves. While there are doubts among some experts regarding the completeness of the data used in the audit, experts from local state companies and foreign companies working in Turkmenistan generally think the Gaffney Cline results are realistic. Concerning the personnel changes, it seems unlikely that high-ranking officials, likely under the close eye of Turkmen law enforcement and security services, would risk passing classified information to foreign companies. In fact, almost all Turkmen officials avoid talking to foreigners because they do not want to leave themselves open to suspicion. END COMMENT. CURRAN