TURKMENISTAN: DOE-SPONSORED PIPELINE WORKSHOP

UNCLAS SECTION 01 OF 02 ASHGABAT 000760

SENSITIVE

SIPDIS

STATE FOR SCA/CEN; EEB
ENERGY FOR EKIMOFF/THOMPSON
COMMERCE FOR HUEPER

E.O. 12958: N/A
TAGS: EPET PGOV EINV TX
SUBJECT: TURKMENISTAN: DOE-SPONSORED PIPELINE WORKSHOP
REVEALS DIRECTION FOR FURTHER COOPERATION


1. (U) Sensitive but unclassified. Not for public
Internet.


2. (SBU) SUMMARY: Post successfully assisted the
Department of Energy in organizing a Pipeline Integrity
and Management Workshop in Ashgabat on June 10-11. The
workshop provided 25 largely mid-level technical
representatives of the Turkmen oil and gas industry with
information on the latest technologies in pipeline
construction, operation, and maintenance presented by a
professor from the UK-based Penspen engineering
consulting company. The U.S.-Turkmenistan Business
Council was a co-sponsor of the workshop. Chevron,
ExxonMobil, KBR/Granherne, and UniversalPegasus also co-
sponsored the event and sent their representatives to
speak at the workshop. END SUMMARY.

TURKMEN GOVERNMENT SUPPORT EVIDENT


3. (SBU) The Government of Turkmenistan demonstrated its
support for the workshop both during the planning stage
and during the event. Deputy Minister of Oil and Gas
Industry and Mineral Resources, Bayramgeldi Nedirov,
personally coordinated the Turkmen participation in the
workshop, delivered opening and closing remarks, and
attended almost all of the sessions. Among other Turkmen
participants were mid-level pipeline managers, engineers,
and technical experts from the Ministry of Oil and Gas
and Mineral Resources, Turkmen State Gas Concern, Turkmen
State Oil Concern, Turkmen Oil and Gas Construction
Concern, Turkmen Geology State Corporation, and the State
Agency for Management and Use of Hydrocarbon Resources.

EVENT DRAWS MEDIA COVERAGE


4. (SBU) The workshop received broad media coverage
here. Watan News, which is the principal state news
program in Turkmenistan, aired a report on the workshop
and an interview with a U.S. Department of Energy
official. The Turkmenistan TV Channel broadcast a ten
minute program about the workshop that included
interviews with two Department of Energy officials and a
representative of the Universal Pegasus Company.
Neytralny Turkmenistan published three articles covering
various aspects of the workshop. Interestingly, the
Watan News report portrayed the workshop as a "logical
continuation" of the Turkmen Government-sponsored
Pipeline Security Conference that was held in Ashgabat on
April 23-24.

CHALLENGES OPENLY DISCUSSED AND REVEALED DURING SESSIONS


5. (SBU) The Turkmen participants were surprisingly open
to discussions on the problems facing Turkmenistan's
energy industry in terms of pipeline management. They
assessed that a new national law was needed for the
protection and exploitation of pipelines and that all
existing standards and regulations should then be brought
into compliance with that law. They also offered that
Turkmenistan should study Western regulations and
standards and draw on them as needed. The participants
were vocal in stating that the sector needs new
equipment, software, and expertise to design, build,
maintain, and operate pipelines. They said they needed
to be able to conduct risk assessment and other
preventive measures and that industry experts should be
trained in operating new equipment once it is procured.
It also became obvious during workshop discussions that
Turkmen technical operators do not have sufficient

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resources and training to identify qualified equipment
suppliers. The participants frequently interrupted the
presenters, asking which companies were capable of
supplying a specific piece of equipment or software that
was mentioned during a presentation. It should also be
noted that, in his closing remarks, Deputy Minister
Nedirov mentioned that the Turkmen oil and gas industry
agencies were open to cooperation with the United States
on the training of personnel.

CHALLENGES ALSO REVEALED ON THE MARGINS OF THE WORKSHOP


6. (SBU) Turkmen participants also voiced a number of
concerns and challenges during conversations and
discussions that took place on the workshop sidelines.
The participants pointed out that Turkmen oil and gas
engineers need specific technical and professional
training to catch up to the latest technologies. Some
complained that the sector is underfunded in terms of
maintenance, spare parts, equipment, salaries, and
training, despite the energy sector's role as the largest
income generator in the country. They also mentioned
that there is a lack of interaction, cooperation, and
information exchange between the various government oil
and gas agencies. Some commented that low- and mid-level
personnel are very hesitant and often discouraged from
making production improvement proposals to top managers,
and there is no upward feedback mechanism.


7. (SBU) COMMENT: The workshop was a success and there
is room to further strengthen cooperation in this field.
The event not only provided the Turkmen participants with
useful information, but also revealed the issues facing
the Turkmen energy industry. It provided some insight on
further cooperation between the U.S. and Turkmenistan in
the energy sector. It looks like the Government of
Turkmenistan would welcome additional training events
like this that provide specific technical instruction and
in-field, hands-on experience to Turkmen engineers. The
U.S. Department of Energy's focus on a key issue in this
workshop, combined with a generous helping of American
commercial expertise, along with official Turkmen
commitment, came together smoothly to give Turkmen
participants a very useful experience. END COMMENT.

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