AZERBAIJAN: TURKMAN AMBASSADOR POSITIVE ON ENERGY

C O N F I D E N T I A L BAKU 000002 SIPDIS E.O. 12958: DECL: 01/01/2019 TAGS: PGOV PREL TX AJ ENRG SUBJECT: AZERBAIJAN: TURKMAN AMBASSADOR POSITIVE ON ENERGY COOPERATION, BILATERAL RELATIONS Classified By: A/DCM Alan Eyre, Reasons 2.4 (b,d) ¶1. (C) SUMMARY. According to the Turkmenistan Ambassador to Azerbaijan, the November 28-29 trilateral Heads of State Summit in Ashgabat with GOAJ President Aliyev and GOT President Gul was a "historic" first step in energy cooperation among the three countries. Turkmenistan is eager to share its vast hydrocarbon resources with the world and will continue to seek to diversify export routes in all directions, including westwards, while keeping with its policy of selling gas at its border. He praised the US for its cooperation and engagement with Turkmenistan and called for more US investment. END SUMMARY. ¶2. (C) On December 5 Ambassador Derse met with the Turkmenistan Ambassador to Azerbaijan, Annamamed Mammedov. EnergyOff was notetaker. ¶3. (C) As it was their first meeting since he arrived in Baku , Mammedov gave the Ambassador an extensive tour d,horizon, of contemporary Turkmenistan, emphasizing GOTX,s desires for good relations with the USG, its desire for strong US commercial presence and US financial investment in Turkmenistan, and its desire to strengthen both it energy sector and its non-energy sector, for which it would need international expertise. He referred to December 12 as being the thirteenth anniversary of GOTX,s neutrality policy,, and stressed its desire to be a good neighbor to all in the region, and to facilitate regional cooperation. ¶4. (C) On relations with Azerbaijan, he said that when the GOTX and GOAJ Presidents met in Saint Petersburg in 2007 the relationship turned a corner,, leading to the exchange of historic HOS visits in 2008. Trade between the two countries, mostly oil, chemical products and energy sector equipment, has also increased substantially, and will continue to do so. The two Presidents, along with President Gul, all agreed in their Ashgabat meeting that cross-Caspian transportation of GOTX hydrocarbons to Europe was important, and that the three countries would proceed accordingly. European countries also need to become more involved, as Turkmenistan 'has to wait for a buyer for its gas' before it can continue. This Ashgabat trilateral HOS meeting was 'historic,' with each President laying out his country,s position on regional energy issues in a spirit of cooperation, and as such it was a necessary first step. ¶5. (C) When asked about delimitation and the possibility of increased energy cooperation with Azerbaijan, to include cross-Caspian hydrocarbon transportation, Mammedov said that Turkmenistan was improving its ports, rail infrastructure and cargo vessels, and that the two countries were in active negotiations to reach an agreement and to create a mechanism for delimitation. He said that the 'intentions were key,' and that there was no tension on either side, that there has been progress, and that 'desire will bring resolution' of the issue. 6 (C) Turkmenistan has 28 offshore blocks, and much hydrocarbon assets on land too, which it is just starting to explore and develop. Turkmenistan,s hydrocarbon assets will be 'a benefit to the whole world.' The GOTX seeks diversification of its energy export routes, to include westwards, and is looking to cooperate with all international energy companies and countries, keeping with its policy of selling gas at its border. From 2009, GOTX will be getting 'international prices' for its gas. LU