Identifier
Created
Classification
Origin
09ASHGABAT326
2009-03-12 12:38:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
AUSTRALIAN PTROCHEMICALS FIRM TAKING A CLOSE LOOK
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C O N F I D E N T I A L ASHGABAT 000326
SIPDIS
STATE FOR SCA/CEN, EEB
E.O. 12958: DECL: 03/12/2019
TAGS: EAID EMIN EPET PREL TX AS
SUBJECT: AUSTRALIAN PTROCHEMICALS FIRM TAKING A CLOSE LOOK
AT TURKMEN MARKET
Classified By: Charge Richard Miles, reasons 1.4 (B) and (D).
C O N F I D E N T I A L ASHGABAT 000326
SIPDIS
STATE FOR SCA/CEN, EEB
E.O. 12958: DECL: 03/12/2019
TAGS: EAID EMIN EPET PREL TX AS
SUBJECT: AUSTRALIAN PTROCHEMICALS FIRM TAKING A CLOSE LOOK
AT TURKMEN MARKET
Classified By: Charge Richard Miles, reasons 1.4 (B) and (D).
1. (C) An Australian trade delegation led by Australian
Trade Commission Senior Commissioner for Russia and the CIS
Dan Tebbutt told Economic Officer on March 10 that he
observed, during a similar visit with Australian mining
companies last year, that Turkmen officials from the mining
sector were unclear regarding how they would proceed in the
short or longterm. The lack of clarity included issues such
as whether and how the Turkmenistan Goverment would develop a
licensing regime and whether or not they were even interested
in having foreign partners. Therefore, during this visit,
Tebbutt decided to refocus the discussions on the oil and gas
sector. He, together with executives from BHP Billiton,
planned to emphasize the usefulness of foreign partners in
bringing investment capital and technology for the
development of the oil and gas sector. He noted that these
foreign (read: Western) companies have resources that
Turkmenistan needs, but does not have access to. He
expressed some level of frustration with the high turnover of
key government personnel. Lastly, he acknowledged
bureaucratic hurdles such as registration for foreign
companies make entering the market considerably more
complicated than the Turkmen will admit.
2. (C) Tebutt noted that Gaffney Cline Associates is doing a
good job advising on contract writing for Iraq's oil and gas
agencies. (NOTE: Gaffney Cline conducted an important
survey of some key Turkmen gas deposits last year. END
NOTE.) He also referred to Gaffney Cline's extensive
knowledge base in the industry and access to any kind of
contract document needed. He suggested that it would be a
good idea to involve the company in capacity building of
contract analysis skills with similar agencies in
Turkmenistan. In his opinion, "It doesn't have to be a
competitive situation; it should be collaborative, to set the
ground work for the next 40-50 years."
3. (C) Officials from BHP Billiton's Houston office,
including Commercial Director for Petroleum, Larry D.
Killion, New Ventures Manager for North Africa/Middle
East/Russia, Paul McIntosh, and Geoscience Advisor for Global
New Ventures in Petroleum, Terry Baganz, accompanied Tebbutt
on the trade mission. They asked about Post's anticipated
projects in the area of environmental concerns in the
hydrocarbon sector, such as water management and flaring.
They also asked about the current level of delegations
visiting Turkmenistan, the human rights situation, and if the
U.S. was planning any changes in its approach towards or
level of interest in regional hydrocarbon issues. They said
that they are looking at developing opportunities in the
seven-to-ten year timeframe rather than five, as exploration
companies typically aim for.
4. (SBU) COMMENT: Typical of other companies that are
realistic about entering the Turkmen market, BHP Billiton is
taking a long-term approach to working in this country.
Instead of pursuing their own Turkmenistan "wish list," these
businessmen are looking for opportunities outside of the
mining sector, an area in which the Turkmenistan Government
does not currently appear ready to offer projects to any
foreign companies. END COMMENT.
MILES
SIPDIS
STATE FOR SCA/CEN, EEB
E.O. 12958: DECL: 03/12/2019
TAGS: EAID EMIN EPET PREL TX AS
SUBJECT: AUSTRALIAN PTROCHEMICALS FIRM TAKING A CLOSE LOOK
AT TURKMEN MARKET
Classified By: Charge Richard Miles, reasons 1.4 (B) and (D).
1. (C) An Australian trade delegation led by Australian
Trade Commission Senior Commissioner for Russia and the CIS
Dan Tebbutt told Economic Officer on March 10 that he
observed, during a similar visit with Australian mining
companies last year, that Turkmen officials from the mining
sector were unclear regarding how they would proceed in the
short or longterm. The lack of clarity included issues such
as whether and how the Turkmenistan Goverment would develop a
licensing regime and whether or not they were even interested
in having foreign partners. Therefore, during this visit,
Tebbutt decided to refocus the discussions on the oil and gas
sector. He, together with executives from BHP Billiton,
planned to emphasize the usefulness of foreign partners in
bringing investment capital and technology for the
development of the oil and gas sector. He noted that these
foreign (read: Western) companies have resources that
Turkmenistan needs, but does not have access to. He
expressed some level of frustration with the high turnover of
key government personnel. Lastly, he acknowledged
bureaucratic hurdles such as registration for foreign
companies make entering the market considerably more
complicated than the Turkmen will admit.
2. (C) Tebutt noted that Gaffney Cline Associates is doing a
good job advising on contract writing for Iraq's oil and gas
agencies. (NOTE: Gaffney Cline conducted an important
survey of some key Turkmen gas deposits last year. END
NOTE.) He also referred to Gaffney Cline's extensive
knowledge base in the industry and access to any kind of
contract document needed. He suggested that it would be a
good idea to involve the company in capacity building of
contract analysis skills with similar agencies in
Turkmenistan. In his opinion, "It doesn't have to be a
competitive situation; it should be collaborative, to set the
ground work for the next 40-50 years."
3. (C) Officials from BHP Billiton's Houston office,
including Commercial Director for Petroleum, Larry D.
Killion, New Ventures Manager for North Africa/Middle
East/Russia, Paul McIntosh, and Geoscience Advisor for Global
New Ventures in Petroleum, Terry Baganz, accompanied Tebbutt
on the trade mission. They asked about Post's anticipated
projects in the area of environmental concerns in the
hydrocarbon sector, such as water management and flaring.
They also asked about the current level of delegations
visiting Turkmenistan, the human rights situation, and if the
U.S. was planning any changes in its approach towards or
level of interest in regional hydrocarbon issues. They said
that they are looking at developing opportunities in the
seven-to-ten year timeframe rather than five, as exploration
companies typically aim for.
4. (SBU) COMMENT: Typical of other companies that are
realistic about entering the Turkmen market, BHP Billiton is
taking a long-term approach to working in this country.
Instead of pursuing their own Turkmenistan "wish list," these
businessmen are looking for opportunities outside of the
mining sector, an area in which the Turkmenistan Government
does not currently appear ready to offer projects to any
foreign companies. END COMMENT.
MILES