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RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
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DE RUEHLO #4632/01 3531701
ZNR UUUUU ZZH
R 191701Z DEC 07
FM AMEMBASSY LONDON
TO RUEHC/SECSTATE WASHDC 6754
RHEBAAA/DEPT OF ENERGY WASHDC
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 LONDON 004632 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
REF LONDON 3999 
 
E.O. 12958: N/A 
TAGS: ECON EPET ENRG UK
SUBJECT: ENERGY SECRETARY BODMAN AND UK ENERGY MINISTER WICKS 
DISCUSS CASPIAN, CLIMATE CHANGE 
 
 
¶1. (SBU) Summary: Energy Secretary Bodman met his UK counterpart 
Malcolm Wicks to discuss Caspian energy, climate change 
and nuclear energy issues on November 20.  The two agreed on the 
need 
for coordinated engagement in the region - particularly with 
Turkmenistan.  End Summary 
 
Caspian Energy 
-------------- 
 
¶2. (SBU) Secretary Bodman, accompanied by Ambassador Tuttle, 
described 
to Minister Wicks the short meeting he had with Turkmenistan 
President 
Berdimuhamedov the previous week in Ashgabat.  The Turkmenistani 
President 
was engaged on market-opening issues, but left the impression that 
needed 
reforms and changes were not imminent and that the relationship 
with Moscow was still of utmost importance.  For instance, Secretary 
Bodman 
told Wicks, Berdimuhamedov raised three times that Turkmenistan 
is only interested in selling gas at the border.  Secretary 
Bodman stressed that he wanted to see an opening of Turkmen- 
Western energy trade, with a TransCaspian pipeline, and the 
participation of Turkmen gas in the Turkey-Greece-Italy and Nabucco 
 
pipelines. 
 
¶3. (SBU) Wicks described a slightly different attitude when he 
visited Ashgabat in September.  Wicks found the Turkmen, 
including Berdimuhamedov, actively desirous of Western 
participation in Turkmenistan.  Wicks stressed that the West and 
the EU member states needed to succeed in opening the Southern 
Corridor (gas), but questioned whether Russia would permit it to 
happen.  Wicks also conveyed a conversation he had with 
Berdimuhamedov in which the latter dismissed U.S. and western 
companies visits to Turkmenistan as "all theory", and contrasted 
it to the Chinese who speak as one voice and come in with 
practical projects. 
 
¶4. (SBU) Despite these concerns, Wicks is optimistic about 
"beginning a dialogue" with Turkmenistan, and sees an improvement 
in their relations with Azerbaijan.  In fact, he said, 
Turkmenistan is more focused on a bilateral Caspian agreement 
with the Azeris than a five-country agreement.  The British also 
pointed to the Turkmen contract with China as proof that they are 
interested in counter-balancing Russia.  Wicks said the UK agrees 
with U.S. thinking on the necessity for a merger of gas gathering 
systems.  During Wicks' visit to Turkmenistan they agreed to a 
series of visitors programs; the first of which will have key 
Turkmen energy officials visiting Scottish offshore facilities 
in February.  Richard Marriott, International Energy Advisor 
to Wicks, said the UK will have to bring in U.S. financial 
experts conversant on Production Sharing Agreements (PSAs) because 
the UK does not use them.  Wicks and Bodman agreed to coordinate on 
 
visits so as to maximize resources and opportunities. 
 
¶5. (SBU) On European thinking in the Caspian, Wicks told Secretary 
Bodman that the European Commission is engaged, but Germany and 
other 
Member States have their own contracts with Gazprom so it will be 
difficult for the EU to speak with one voice.  Marriott described 
meetings with energy companies (reftel) who proposed an 
incremental approach: creating a merged gathering system for 
East Caspian gas - a low risk/low profile way to start the process 
of getting Turkmen gas to the West - as opposed to a big shore- 
to-shore pipeline which would be high-risk and a lengthy project. 
 
Climate Change 
-------------- 
 
¶6. (SBU) Secretary Bodman described the U.S. goal of getting an 
agreement on Climate Change no later than next summer, and 
stressed the key role of the Major Economies Meetings as part of 
the overall UN process.  He also stressed to Minister Wicks the 
need for developing country participation by noting that even 
if the U.S. were to completely eliminate all emissions 
immediately, it would be insufficient to meet global carbon 
reduction 
goals.  Wicks agreed on the importance of China and India's roles 
in reaching any agreement, and said technology is key to any 
post-2020 settlement. 
 
Nuclear 
 
LONDON 00004632  002 OF 002 
 
 
------- 
 
¶7. (SBU) Wicks mentioned the importance of nuclear technology in 
the climate change solution, and described a bill HMG will put forth 
 
in January on this issue.  The UK government is currently in a 
"re-consultation" period with the British public on nuclear 
issues, so cannot move forward - or engage in the Global Nuclear 
Energy Partnership - until that process finishes early next year. 
 
This message was cleared by Secretary Bodman's office. 
 
TUTTLE