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UNCLAS SECTION 01 OF 03 ASHGABAT 001262 
 
SIPDIS 
 
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STATE FOR SCA/CEN, SCA/PPD 
DOE FOR EKIMOFF/THOMPSON 
 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON ENERG EPET TX
SUBJECT: ENERGY SECRETARY BODMAN PRESS CONFERENCE AT TURKMENISTAN 
INTERNATIONAL OIL AND GAS EXHIBITION 
 
 
¶1. (U) On November 15, Energy Secretary Bodman held a press 
conference at the Turkmenistan International Oil and Gas Exhibition. 
 The following is the transcript of the press conference: 
 
BEGIN TEXT: 
 
 
Secretary Bodman: Hello everyone.  I'm Sam Bodman, the United States 
 
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Secretary of Energy.  I am very glad we have the opportunity to 
 
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speak to you today.  Earlier I had a very good meeting with the 
president of Turkmenistan.  And I told him that his decision to open 
Turkmenistan to western investment in my judgment is a prudent idea. 
 I believe it will be a great assistance in the development of 
Turkmenistan's oil and gas reserves, as well as in the (inaudible) 
of a pipeline.  Our Department has already offered assistance and 
technical expertise and I offered to continue that during the 
balance of this year.  We also talked about legal and regulatory 
structures that would be helpful in my judgment in stimulating new 
investment.  Ultimately these are extraordinarily vast natural 
resources that belong to the Turkmeni people.  And the president 
will have to determine what is best for the country and its people. 
He has said that he is interested in forming a long term 
partnerships and I told him that my country feels much the same way. 
 Today's meeting which lasted quite a long time, better part of an 
hour, I believe has given us a good basis for moving forward with 
further discussions.  And now if there are any questions, I would be 
happy to try to answer them. 
 
Question 1 -- (in English) Michael Ritchie from Energy Intelligence. 
 Thanks very much.  I wonder if you could elaborate on you said 
"good basis for really moving forward," in which direction? 
 
Secretary Bodman: Well we've had a program in place that, I should 
 
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first I guess should wait for the translation of the question... 
forgive me... [waits for translation of question into Russian]  We 
have had in place an educational program for members of the 
government, for members of the regulatory bodies of this government 
with the idea of acquainting them with how we do business in United 
States and we've had a visitation of a significant delegation. 
There are a number of questions that come up as to why we do things 
in our country the way we do, the way we do them and why they might 
differ from a new and evolving economy in Turkmenistan.  So when I 
say "continuation," it's a continuation of that sort of education 
and that kind of discussion. 
 
Question 2 -- (in English) John Roberts with Platts.  Did you 
discuss Turkmenistan's investment requirements?  What kind of 
tickers they thought they might be, you or they thought might be 
necessary to move the country along in terms of organizing energy 
industry? 
 
Secretary Bodman:  We didn't really talk -- oh, forgive me, allow 
 
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you to... [waits for translation]  We didn't really talk about 
amounts of investment it was more philosophy, the advantages of how 
one, for example, might export oil and gas from this country -- it 
was that sort of thing.  And to get his views of that subject. 
 
Question 3 -- (in English, Lucian Kim, Bloomberg): Two part question 
from Bloomberg News.  First question is what is the timing of your 
visit?  Can we expect maybe some breakthrough for a U.S. company? 
For example, Chevron has expressed a great interest.  The second 
question is a follow-up on what you've just said about your 
discussions about philosophy of how to export oil and gas.  What is 
the president's opinion of projects favored by the U.S. such as the 
Trans-Caspian? 
 
Secretary Bodman:  First with respect to timing and there is no 
 
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particular significance. There was an opportunity to come at this 
particular point of time that tied in with the world energy 
conference that's being held in Rome and there were number of other 
 
ASHGABAT 00001262  002 OF 003 
 
 
things; we're going to be opening the Turkey-Greek inter-connector, 
the pipeline, and that is scheduled for this weekend and so there 
were number of things that lead to the timing, but it was not tied 
to any particular announcement.  There are clearly a lot of 
opportunities that have been talked about in this country.  But with 
respect to the timing there is none that's in particular.  With 
respect to specific projects we did talk a bit about the 
Trans-Caspian pipeline that potentially might lead to the export of 
gas.  But it was strictly my, it was more of a discussion from my 
stand point giving my analysis of what the opportunities might be 
and the President expressed interest in my thoughts but didn't make 
any commitments. 
 
Question 4 -- (in Russian, Igor Sasin, Agence France Presse, in 
Russian)  So my question is from Agence France Presse.  What types 
of steps are necessary for Turkmenistan in order to first of all 
attract investment and at the same time what are some of the things 
that they need in conditions? Do they need to do, realize so that 
large western companies would be attracted to come to Turkmenistan 
on a long term basis. 
 
Secretary Bodman: We are of the view - I'm of the view that first 
 
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and foremost we need to have transparent markets - that is to say we 
need to know why decisions are made the way they are, we need to 
have open discussion of particular projects.  And they need to be 
clear and that's really the issue.  And I expressed my views with 
respect to that question with the president. 
 
Question 5 --  (in Russian) Oleg Lukin. Oil and Gas Vertical Oil and 
Gas Journal.  I would like to know the opinion of the US side about 
the possibility of participation of Russian companies in the 
construction of the Transcaspian pipeline and export of the Turkmen 
gas by the Russian companies through this pipeline. 
 
Secretary Bodman: Oh, first of all, I have no knowledge of any 
 
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particular pipeline that is currently in the works. Having said that 
the President has said that this country will be operated on the 
basis of the fair treatment of everybody, whether it's Russia, 
whether it's Azerbaijan, whether it's Kazakhstan, whether it's the 
United States, and I take him at his word, and I believe that this 
is the way the business will be done. 
 
Question 6 -- Information Agency Turkmen Press Leyla Durdiyeva. 
What are the perspectives for the development of the 
Turkmen-American cooperation in the energy sector, and in your 
opinion, what favorable terms can influence that cooperation? 
 
Secretary Bodman: Well, the cooperation obviously is a product of 
 
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the fact that this is a country with enormously attractive natural 
resources.  And having said that, each country, there are a number 
of countries that are appearing here, in Turkmenistan, just witness 
the number of companies that are located here, that are exhibiting 
at the at this convention.  We've had very..... Speaking for the 
United States, we've had very good interactions.  As I said I did 
write the President soon after his inauguration and asked if he 
would be interested in sending a delegation to the United States and 
I heard back from him that he would have such an interest.  And as I 
said, we did complete the first portion of that program, describing 
what we do and how we do it, and the remainder of the program, which 
is spread out over the balance of the next 12 months or so has been 
articulated.  I think it is important for the people of this country 
to understand that it takes years to develop an approach to the 
development and the production of natural resources, so that the 
citizenry are satisfied that they are being fairly treated.  Your 
President is relatively early in his term of office and the country 
has undergone an enormous amount of change in a relatively short 
period of time, and I think it is a kind of a time for all of us to 
take stock and to make a judgment as to what we can do to further 
the kind of progress that has been made in the past. 
 
 
ASHGABAT 00001262  003 OF 003 
 
 
Question 7 -- (in Russian) Anna Kurbanova. Itar Tass Russian 
Information Agency.  The United States generally has a notorious 
experience in Turkmen Oil projects.  If we remember Unical, they 
were not able to complete the Trans Afghan pipeline project, and PSG 
did not complete the Trans-Caspian pipeline project.  What will be 
the U.S. reaction to a Trans-Iranian route for the export of the 
Turkmen gas to Nabucco? 
 
Secretary Bodman: We believe that Iran is trying to develop nuclear 
 
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weapons.  And we are doing everything we know how to do to bring 
Iran to the table such that they would cease the development that 
they started.  And we don't run the world, we are a participant in 
the governance of the world along with other countries and if such a 
pipeline is built, we will be unhappy. 
 
Secretary Bodman's staff member: Last question. 
 
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Question 8 -- (in Russian, Marat Gurt - Reuters Agency). Would you 
say that the uncertainty of the Caspian Sea legal status will 
prevent the completion of the Trans-Caspian pipeline project because 
earlier when the project was planned Russia and Iran, that share the 
coasts of the Caspian, were against it? 
 
Secretary Bodman: We are of the view that.... I am personally of the 
 
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view....Let me start over, I am personally of the view, that having 
a diversity of sources of energy and within each type of energy 
having a diversity of suppliers of energy is very important to the 
future of all countries of the world with respect to their energy 
security.  I believe that it's important for the future of all 
countries that a Trans-Caspian pipeline be constructed, and it would 
advantageous, not necessary, but advantageous to have Turkmen gas as 
an important contributor to the flow of gas through this pipeline. 
It is, I believe, important for the future of all countries, 
including my own, that there be free markets, that there be a 
determination of the use of fuel for the sake of energy and not for 
political purposes.  And in my opinion, my personal opinion, it is 
time to diversify the source of energy for Europe.  This is nothing 
against Russia.  The Russians are acting in a perfectly rationale 
way.  Rather, I think this is for the benefit particularly for hose 
countries in Eastern and Central Europe. 
 
Question 9 -- (in Russian, Reuters follow up) What about the legal 
status of the Caspian Sea? 
 
Secretary Bodman: The... Our country has not tried to interfere in 
 
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the affairs of other countries.  Having had people that have looked 
at the question, we have concluded and have expressed the opinion to 
the members, the five countries located on the Caspian, that all you 
need are two countries, as long as you are connecting one country 
with another.  That's what you need to accomplish the results. 
That's what has been done in the North Caspian where Turkmenistan 
was not consulted in that. That was something that was handled in 
there.  Thank you very much. 
 
END TEXT. 
 
¶2. (U) Secretary Bodman did not have an opportunity to clear this 
cable. 
 
HOAGLAND