VZCZCXRO5413
PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN
RUEHLZ RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #1283/01 3301357
ZNR UUUUU ZZH
P 261357Z NOV 07
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 9770
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
RUCNCIS/CIS COLLECTIVE PRIORITY
RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 3032
RUEHBJ/AMEMBASSY BEIJING PRIORITY 0848
RUEHKO/AMEMBASSY TOKYO PRIORITY 0722
RUEHIT/AMCONSUL ISTANBUL PRIORITY 1298
RUEKJCS/JOINT STAFF WASHDC PRIORITY
RHMFIUU/CDR USCENTCOM MACDILL AFB FL PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RHEFDIA/DIA WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 ASHGABAT 001283 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EUR/RUS, EEB 
STATE PLEASE PASS TO USTDA DAN STEIN 
COMMERCE FOR HUEPER 
ENERGY FOR EKIMOFF/THOMPSON 
 
E.O. 12958: N/A 
TAGS: PREL PGOV ENERG EPET TX
SUBJECT: TURKMENISTAN INTERNATIONAL OIL AND GAS EXHIBITION AND 
CONFERENCE (TIOGE-2007): MANY CAME BUT NO SURPRISES 
 
REFTELS: A) ASHGABAT 1256, B) ASHGABAT 1260 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2. (SBU) SUMMARY:  This year's Turkmenistan International Oil and 
Gas Exhibition (TIOGE) and conference had the highest attendance 
since 2000 and attracted unprecedented interest from major petroleum 
companies, regional stakeholders and press.  However, TIOGE-2007 did 
not bring any surprises or breakthroughs.  If the government  really 
is interested in attracting foreign companies, it will have to 
abandon a number of policies, including its unwillingness to sign 
onshore product sharing agreements (PSAs), inflexibility on 
discussing Trans-Caspian pipeline options prior to delimitation of 
its border with Azerbaijan, and Turkmenistan's adherence to a policy 
of selling gas at the border.  END SUMMARY. 
 
PARTICIPANTS 
 
¶3. (U) According to the conference organizer -- ITE, UK -- the TIOGE 
conference is one of the fastest growing in the company's portfolio 
of eight such events in various CIS countries.  With over 650 
delegates and 60 speakers, the TIOGE-2007 Coference was highly 
oversubscribed, causing logistical problems for organizers who 
simply could not provide hotel accommodation for all guests. 
Exhibitors included more than 150 foreign companies from 21 
countries.  U.S. companies exhibiting at TIOGE included Cudd Energy 
Services, Cameron Cooper, Chevron, BP, Bertling Logistics, Midland 
Oil and Gas, Gateway and Oilwell Varco.  Other main exhibitors were 
Gazprom and Lukoil of Russia, Naftogaz of Ukraine and Petronas, from 
Malaysia. 
 
¶4. (U) Although Chevron and BP exhibited and presented at the 
conference, others, including ExxonMobil, ConocoPhillips, Shell and 
even SOCAR (State Oil Company of Azerbaijan) visited to establish or 
renew contacts with Turkmenistan's petroleum officials.  U.S. 
Secretary of Energy Samuel Bodman (reftels) and EU Energy 
 
SIPDIS 
Commissioner Andris Piebalgs came to Ashgabat for the first time in 
several years. 
 
"GENERALLY BLAND PRESENTATIONS..." 
 
¶5. (SBU) As a former General Manager of a western company who is now 
an independent consultant put it, the conference featured "generally 
bland presentations with a few exceptions."  The exceptions were the 
speeches by BP, Chevron and EU Energy Commissioner Piebalgs.  What 
made these presentations stand out, according to several 
individuals, is the fact that they addressed issues related to real 
alternative pipeline routes from Turkmenistan. 
 
¶6. (SBU) Turkmenistan government officials delivered very short and 
traditionally dull speeches with no tangible content that would be 
useful for potential and current investor.  Even Executive Director 
of the State Agency for Management and Use of Hydrocarbon Resources 
Bayrammyrat Myradov's presentation was very general, citing the 2030 
Oil and Gas Development Plan and reviewing financial elements of 
standard PSAs and basic applicable laws. 
 
¶7. (U) Turkmenistan's traditional partners active in Turkmenistan -- 
Petronas, Burren, Dragon Oil and Mitro (Hazar Consortium) -- were 
extremely cautious and general in their presentations.  Petronas 
avoided even talking about the status of its current operations, let 
alone plans to export its gas.  Gazprom proposed to build a joint 
gas production platform in the Caspian and a petrochemicals facility 
in Turkmenbashy to export refined products by tanker via the 
Volga-Don canal. 
 
BURREN READY TO SELL ITS ASSETS IN TURKMENISTAN 
 
¶8. (SBU) Chris Gupta, General Manager of Burren Energy, UK confirmed 
that his company is ready to sell its assets in Turkmenistan "if the 
 
ASHGABAT 00001283  002 OF 002 
 
 
price is right."  He also confirmed that the $3 billion offered by 
ENI is not adequate.  Gupta did not offer any explanation for 
Burren's desire to divest. 
 
¶9. (SBU) COMMENT: Turkmenistan continues to state publicly that it 
wants a multi-route petroleum export policy.  Not wanting to 
emphasize directly a trans-Caspian option, the government may 
nonetheless have used the presence of SOCAR and the presentations of 
BP and Chevron to help keep a trans-Caspian pipeline on the table. 
However, Turkmenistan's future actions will demonstrate whether it 
is serious about increased, diversified foreign involvement in the 
country's oil and gas sector.  If the leadership really is 
interested in attracting foreign companies, it will have to abandon 
a number of policies, including its unwillingness to sign onshore 
product sharing agreements (PSAs), inflexibility on discussing 
Trans-Caspian pipeline options prior to delimitation of its border 
with Azerbaijan, and Turkmenistan's adherence to a policy of selling 
gas at the border.  END COMMENT. 
 
CURRAN