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DE RUEHAH #0209/01 0420844
ZNR UUUUU ZZH
P 110844Z FEB 08
FM AMEMBASSY ASHGABAT
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INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
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RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 ASHGABAT 000209 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR SCA/CEN, EEB 
PLEASE PASS TO USTDA DAN STEIN 
ENERGY FOR EKIMOFF/THOMPSON 
COMMERCE FOR HUEPER 
 
E.O. 12958: N/A 
TAGS: ENRG SENV APER ABUD TX
SUBJECT:  TURKMENISTAN:  INPUT FOR NEW REQUIRED REPORTS TO 
CONGRESS ON ENERGY 
 
REF: STATE 10743 
 
¶1.  (U) The following is Embassy Ashgabat's response to 
reftel, which requests input for two new reports to Congress 
on energy.  Paragraph 2 offers a brief overview of the energy 
situation in Turkmenistan, paragraph 3 lists energy-related 
U.S. objectives, paragraph 4 offers a short description of 
the Embassy's activities, and paragraph 5 contains the 
Embassy's responses to questions A, B, C and D in paragraph 4 
of reftel. 
 
ENERGY SITUATION IN TURKMENISTAN 
 
¶2.  (U) Turkmenistan is a hydrocarbon-rich country that 
shares its southern border with Afghanistan and Iran. 
Historically, pipelines through Russia have been 
Turkmenistan's sole means of exporting its hydrocarbons 
(mostly natural gas, with some oil) to foreign markets, 
offering the Russian Federation a virtual monopoly over 
Turkmenistan's exports.  The construction of a small (8-13 
billion cubic meter/year) natural gas pipeline to Iran in the 
mid-1990's offered limited access to a new market.  Although 
Turkmenistan for years eschewed participation in regional 
energy initiatives, it has been supplying Afghanistan with 
limited amounts (around 165 megawatts) of cheap (2 
cents/kilowatt hour) electricity for several years. 
 
U.S. GOVERNMENT OBJECTIVES 
 
¶3.  (U) The death of Turkmenistan's President Saparmurat 
Niyazov in December 2006 offered new opportunities in the 
energy sector.  The embassy has supported a U.S. initiative 
to increase engagement and cooperation with Turkmenistan on 
energy matters.  Objectives of this engagement include: 
 
-- Strengthening Turkmenistan's sovereignty by promoting 
diversification of the country's export pipelines. 
-- Increasing Turkmenistan's hydrocarbon production. 
-- Increasing transparency of and investor confidence in 
Turkmenistan's data on its hydrocarbon reserves. 
-- Increasing participation and investment by U.S. companies 
-- particularly the "majors" -- in Turkmenistan's hydrocarbon 
sector. 
-- Increasing understanding among Turkmenistan's hydrocarbon 
officials of world hydrocarbons markets and international 
standards. 
-- Increasing Turkmenistan's participation in regional energy 
development initiatives such as USAID's REMAP program. 
-- Promoting Afghanistan's stability and economic development 
through increased exports of Turkmen electricity to 
Afghanistan. 
 
EMBASSY ACTIVITIES 
 
¶4.  (U) In addition to providing extensive reporting on 
Turkmenistan's production capabilities and new developments 
in Turkmenistan's rapidly changing hydrocarbon and energy 
sectors, the Embassy in 2007 has: 
 
-- Supported eight visits by U.S. hydrocarbon officials, 
including the U.S. Secretary of Energy, that were directed 
toward establishing and strengthening a bilateral energy 
dialogue.  The Embassy also supported more than two dozen 
other visits in which energy cooperation was a major topic 
for discussion. 
-- Supported efforts by the U.S. Trade and Development Agency 
(USTDA) to develop a training program for Turkmenistan's 
hydrocarbon sector. 
-- Supported preparations for a USTDA-sponsored high-level 
 
ASHGABAT 00000209  002 OF 002 
 
 
visit in September by Turkmen hydrocarbons officials to the 
United States that culminated in a conference with U.S. 
businessmen interested in investing in Turkmenistan's 
hydrocarbon sector. 
-- Provided briefings and -- consistent with U.S. regulations 
-- support to U.S. hydrocarbons firms interested in 
establishing a commercial presence in Turkmenistan. 
-- Urged Turkmenistan's energy officials to participate in 
conferences and training opportunities organized by USAID's 
REMAP program. 
-- Supported USAID/Kabul's efforts to increase exports of 
electricity to Afghanistan. 
 
¶5.  (U) A.  Within Embassy Ashgabat, the Political-Economic 
section takes the lead on gas and oil and domestic energy 
issues.  There are three U.S. officers and five locally 
employed staff in the section.  USAID works energy issues 
related to USAID's REMAP program and efforts to expand energy 
exports from Turkmenistan to Afghanistan.  The Embassy's 
USAID section has one American representative, three locally 
hired project specialists, and one American EFM public 
outreach coordinator. 
 
¶B.  Positions of employees that work on energy matters and 
the percentage of time they devote to energy matters: 
 
-- Charge/Ambassador:  20 percent of time 
-- Deputy Chief of Mission:  5 percent of time 
-- Political-Economic Counselor (Energy Officer):  60 percent 
of time 
-- 1 Political-Economic FSN:  60 percent of time 
-- USAID Country Representative:  5 percent of time 
-- 1 USAID FSN:  10 percent of time 
 
¶C.  Description of the positions of employees and the kinds 
of work they do: 
 
-- Charge/Ambassador:  Engage with host government officials 
on energy issues, maintain contacts with hydrocarbon 
companies, coordinate bilateral energy dialogue. 
-- Deputy Chief of Mission:  As needed, maintain contacts 
with hydrocarbon companies, report on energy-related meetings. 
-- Political-Economic Counselor:  Report on developments in 
hydrocarbon sector and on hydrocarbon sector production 
capabilities, meet with host government officials on energy 
issues, report on energy-related meetings, maintain contacts 
with hydrocarbon companies, including briefing businessmen 
interested in entering Turkmenistan's energy sector, support 
energy-related visits. 
-- Political-Economic FSN (Economic/Commercial Specialist): 
Translate for energy dialogue meetings, report on 
developments in hydrocarbon sector, maintain contacts with 
hydrocarbon companies and government energy-sector officials, 
support energy-related visits. 
-- USAID Country Representative and USAID Economic Growth 
Project Management Specialist:  Meet with energy sector 
officials to promote Turkmenistan's participation in REMAP 
and increased exports of electricity to Afghanistan, 
coordinate USAID/Kabul and U.S. government activities related 
to increasing electricity exports to Afghanistan with Embassy 
of Afghanistan; report on developments. 
 
¶D.  Budget: 
 
-- Personnel Costs:  $158,000 
-- Programs (energy-related travel to the provinces and 
energy officers' conference):  $6500 
HOAGLAND