VZCZCXRO3493
PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ
RUEHNEH RUEHPW RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHAH #1498 3231041
ZNR UUUUU ZZH
P 181041Z NOV 08
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 1878
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
RUCNCIS/CIS COLLECTIVE PRIORITY
RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 4510
RUEHBJ/AMEMBASSY BEIJING PRIORITY 2322
RUEHUL/AMEMBASSY SEOUL PRIORITY 0069
RUEHKO/AMEMBASSY TOKYO PRIORITY 2187
RUEHIT/AMCONSUL ISTANBUL PRIORITY 2758
RHMFIUU/CDR USCENTCOM MACDILL AFB FL PRIORITY
RUEHVEN/USMISSION USOSCE PRIORITY 3076
RUEAIIA/CIA WASHDC PRIORITY
RHEFDIA/DIA WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY

UNCLAS ASHGABAT 001498 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN; EEB 
 
E.O. 12958: N/A 
TAGS: PGOV EINV EPET TX
SUBJECT: TURKMENISTAN:  BERDIMUHAMEDOV'S FIRST TRIP TO 
SOUTH KOREA OPENS DOOR TO GREATER COOPERATION 
 
¶1.  (SBU)  SUMMARY:  South Korea hosted the president of 
Turkmenistan for a two-day visit that centered on developing 
the economic relationship.  The two countries explored 
cooperation in a variety of areas, including energy 
development and infrastructure modernization.  A Korean 
diplomat in Ashgabat offered the opinion that both sides are 
pleased with the fast-developing relationship, and suggested 
that a Korean presidential visit may be in the planning 
stages for spring 2009.  Turkmen officials will likely be 
enthusiastic to have another player competing for a role in 
the country's energy development, and may be hopeful that a 
Korean national energy company, in particular, will soon 
become another reliable partner.  END SUMMARY. 
 
¶2.  (SBU)  On November 6 and 7, President Berdimuhamedov made 
his first official visit to South Korea.  In a press 
conference, the Turkmen leader said that his country will 
support South Korea's efforts to acquire reliable energy 
supplies and other resources.  Korean officials, for their 
part, indicated readiness to participate in the refurbishment 
of Turkmenistan's infrastructure and facilities within its 
oil and gas sector.  The Turkmen president also traveled to 
Ulsan and Pusan, toured a shipmaking complex, an auto 
manufacturing plant, an oil refinery, and Pusan's modern port 
facilities. 
 
¶3.  (SBU)  Poloff met November 17 with Korean First Secretary 
Son Jin Hwa, who said that the bilateral relationship has 
been developing at a fast pace, and both sides a re pleased. 
A South Korean embassy opened in Turkmenistan just this year, 
in January.  Korean Prime Minister Han Seung-soo visited 
Turkmenistan in May to initiate the discussion on energy 
development cooperation, and the embassy is planning for a 
"very senior Korean official" to visit Turkmenistan in Spring 
¶2009.  Son said that his government was thrilled to hear that 
Berdimuhamedov's trip dominated Turkmen press for five days. 
 
¶4.  (SBU)  Korean companies are interested in projects to 
refurbish the oil refineries at Seidi and Turkmenbashy, 
construction of desulfurization facilities near the South 
Iolatan gas field, construction of a factory to manufacture 
gas pipe, and refurbishment of several provincial airports. 
South Korean energy companies have also expressed interest in 
competing for the right to develop several oil and gas blocks 
in the Caspian, including the Korean National Oil 
Corporation.  Son said that most of the Korean companies 
interested in working in Turkmenistan were private, although 
some national companies were weighing the costs and benefits 
of investing in Turkmenistan as well. 
 
¶5.  (SBU)  COMMENT:  There has been no reporting thus far 
regarding which specific Caspian Sea blocks interest the 
Korean companies, but Turkmen officials are likely pleased to 
have another country competing for a role in energy 
development here.  If a Korean national energy company is 
interested, the government of Turkmenistan will certainly 
prefer it as a potential energy development partner, since 
national companies are more likely to work on projects that 
earn little or no profit, and are able to come up with 
capital for major projects more easily than private firms. 
Private Korean companies competing for other energy and 
infrastructure projects, however, will have to deal with the 
same business challenges that other foreign companies are 
faced with here.  END COMMENT. 
MILES