VZCZCXRO2597
PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN
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DE RUEHAH #1167/01 3030704
ZNR UUUUU ZZH
P 300704Z OCT 07
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 9617
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
RUCNCIS/CIS COLLECTIVE PRIORITY
RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 2918
RUEHBJ/AMEMBASSY BEIJING PRIORITY 0738
RUEHKO/AMEMBASSY TOKYO PRIORITY 0614
RUEHIT/AMCONSUL ISTANBUL PRIORITY 1191
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEHVEN/USMISSION USOSCE PRIORITY 1850
RHMFIUU/CDR USCENTCOM MACDILL AFB FL PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0614
RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEFDIA/DIA WASHDC PRIORITY
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RUEKJCS/SECDEF WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 ASHGABAT 001167 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EUR/RUS, EEB 
 
E.O. 12958: N/A 
TAGS: PGOV EINV EPET RS TX
SUBJECT:  TURKMENISTAN:  RUSSIAN ENERGY COMPANIES 
WINDOW-DRESS INDEPENDENCE DAY 
 
REF: ASHGABAT 1164 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY: On October 25, Turkmenistani government 
media reported that a rich gas deposit that will produce 4 
bcm per year had been tapped at South Yoloten.  On October 
26, the eve of Turkmenistan's Independence Day, President 
Berdimuhamedov met with mostly Russian oil and gas 
delegations that the government of Turkmenistan had 
reportedly asked to come to Ashgabat for the Independence Day 
events.  Little new was reported from the meetings, seeming 
to confirm TNK-BP's comment to the Charge that the meetings 
were largely ceremonial (reftel).  END SUMMARY. 
 
¶3.  (U) On October 26, President Berdimuhamedov hosted an 
unusually large number of official delegations interested in 
Turkmenistan's hydrocarbon sector. Valery Golubyev, Deputy 
Chairman of Gazprom, congratulated Berdimuhamedov on the 
natural gas strike at the South Yoloten field southeast of 
Mary, which press reports claim will produce 4 bcm per year. 
Golubyev and Berdimuhamedov also reportedly held "fresh 
discussions" on their 25-year gas delivery arrangement, the 
"direction of their strategic partnership," and preparation 
of the still-delayed intergovernmental agreements for the 
refurbishment and expansion of the Caspian littoral pipeline 
to Russia.  "There will be no delay on the part of Gazprom", 
Golubyev was quoted saying, raising questions about other 
unmentioned delays that seem to be slowing the littoral 
pipeline's realization.  Gazprom is also funding the 
construction of the new Russian-Turkmen school in Ashgabat. 
According to the press account, when Berdimuhamedov exhorted 
that the project move forward without delay, Golubyev tersely 
noted Gazprom had already handed over to the government of 
Turkmenistan the $20 million promised for the school. 
 
¶4.  (U) Reports on other meetings included: 
 
-- Yuri Shafranik, Soyuzneftegaz chief, came to discuss his 
company's interest in developing hydrocarbon deposits on the 
Caspian shelf and reinforced his company's technological 
superiority in the area of associated gas utilization. 
Soyuzneftegaz is providing financial backing for educational 
programs that take Turkmen students to Russian universities. 
 
-- Igor Makarov, Chief of Itera, expressed interest in 
participating in the development of oil and gas deposits on 
the Caspian shelf.  Itera has agreed to build a new carbamide 
plant in Turkmenbashi and a spa for Itera employees on the 
Caspian coast. 
 
-- Robert Dudley, President and CEO of the Russian-British 
company TNK-BP-Management, discussed the company's interest 
in refurbishing the Seydi Refinery and other large, outdated 
production facilities.  He also mentioned his company's role 
in sponsoring Turkmen students to Russian universities to 
develop indigenous oil and gas technocratic expertise. 
 
-- Senior company representatives of the Belgian Company ENEX 
and its multinational partners came as well to discuss the 
potential construction of a silicon production plant. 
Already a player in Turkmenistan, ENEX is racing a 
fast-approaching deadline to build a new compressor station 
at the  Dovletabad-3 gas field in time for Turkmenistan Flag 
Day February 18. 
 
¶5.  (SBU) COMMENT:  Although the Russian delegations, 
especially, received high-profile media coverage, so far as 
we can determine little new ground was broken.  The meetings 
seemed to be largely ceremonial, all part of the carefully 
 
ASHGABAT 00001167  002 OF 002 
 
 
stage-managed Independence Week events.  END COMMENT. 
HOAGLAND