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UNCLAS SECTION 01 OF 02 ASHGABAT 000286 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EUR/RUS, EAP/K, EEB 
PLEASE PASS TO USTDA DAN STEIN 
ENERGY FOR EKIMOFF/THOMPSON 
COMMERCE FOR HUEPER 
 
E.O. 12958: N/A 
TAGS: PREL EAID EPET TX
SUBJECT:  TURKMENISTAN:  MINISTER OF OIL AND GAS 
ENTHUSIASTICALLY WELCOMES USTDA PROGRAMS 
 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY:  During a meeting with U.S. Trade and 
Development Agency (USTDA) Regional Director Dan Stein, 
Minister of Oil and Gas Baymurad Hojamuhamedov 
enthusiastically welcomed possible USTDA assistance.  He 
expressed particular interest in U.S. government and/or 
commercial assistance in developing an oil and gas training 
center and welcomed a possible USTDA grant to help develop 
Turkmenistan's "weak" petrochemical sector.  A USTDA 
contractor will visit in the next two weeks to further 
explore the possibilities for USTDA involvement, but the 
initial prospects look excellent.  END SUMMARY. 
 
¶3.  (SBU) During a February 28 meeting with USTDA Regional 
Director for Europe and Eurasia Dan Stein, Oil and Gas 
Minister Hojamuhamedov enthusiastically welcomed the 
possibility of cooperation with USTDA.  Hojamuhamedov 
reported that his ministry has signed bilateral memoranda of 
understanding with the United Kingdom's Ministry of Energy 
and the Ministry of Trade and Commerce in South Korea.  The 
ministry also signed agreements with some Indian companies, 
including with the Gas Authority of India, Limited (GAIL). 
Within the scope of these agreements, the Minister visited 
South Korea, where he made a presentation on Turkmenistan's 
oil and gas prospects, and South Korean companies have been 
visiting Turkmenistan frequently over the last two to three 
months.  The Ministry also agreed with a recent German trade 
delegation to form working groups/task forces to discuss 
development of Turkmenistan's chemical sector.  However, 
Hojamuhamedov added, he would also like to see U.S. companies 
more engaged in Turkmenistan. 
 
¶4.  (SBU) Noting that oil and gas sector training had been 
phased out during the "transition time," Hojamuhamedov said 
that his Ministry is now working to establish a training 
center with the most advanced equipment.  For that purpose, 
his staff went to India, where they talked with oil and gas 
companies, including GAIL.  On March 3, some of his staff 
will travel to Russia, where they will look at Gazprom's and 
Transneft's training facilities and curriculum.  However, he 
added, he would be very interested if USTDA could identify or 
organize a visit to a U.S. oil and gas training center -- one 
with a particularly well-developed curriculum -- or help to 
arrange for center personnel to visit Turkmenistan.  Such 
travel, though, would need to take place very soon. 
 
¶5.  (SBU) Hojamuhamedov said that the Ministry's training 
center will be broadly focused in all areas -- the upstream, 
mid-stream and downstream, as well as oil processing. 
Training would be for mid-level staff and managers.  The 
Cabinet of Ministers has already approved the general idea, 
and Hojamuhamedov suggested that getting a budget will not be 
a problem.  However, equipment and technical assistance from 
companies would also be welcome. 
 
¶6.  (SBU) Stating that Turkmenistan's petrochemical sector 
had been largely neglected in recent years, Hojamuhamedov 
said that human capacity in that sector was weak. 
Turkmenistan needs to find U.S. companies that want to become 
involved, and is willing to consider joint ventures.  "This 
is what we say to everybody, and it is up to the companies to 
decide what they want."  Noting that his Ministry is planning 
to convert the Seydi refinery (located in northeastern 
Turkmenistan, not far from Turkmenabat) into a petrochemical 
facility, he said that they will announce an international 
tender in the first week of March to design a new plant.  The 
 
ASHGABAT 00000286  002 OF 002 
 
 
tender will be announced on the Ministry's website, 
www.oilgas.gov.tm.  Hojamuhamedov welcomed a possible USTDA 
grant in the petrochemical sector, as well. 
 
¶7.  (SBU) COMMENT:  Hojamuhamedov is very familiar with USTDA 
programs as a result of the USTDA-sponsored visit by 
hydrocarbon officials to the United States last fall and an 
ongoing USTDA training program being held at the Hydrocarbon 
State Agency, the first phase of which will end February 29, 
and it was very clear that he appreciates the expertise that 
USTDA can bring to the equation.  A USTDA contractor will 
visit in the next two weeks to further explore the 
possibilities for USTDA involvement, but the initial 
prospects, at least, look excellent.  END COMMENT. 
 
¶8.  (U)  USTDA Dan Stein cleared this cable. 
HOAGLAND