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UNCLAS SECTION 01 OF 02 ASHGABAT 000244 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EEB 
ENERGY FOR EKIMOFF/BURPOE/COHEN 
 
E.O. 12958: N/A 
TAGS: BTIO ENIV ENRG EPET PGOV TX
SUBJECT: TURKMENISTAN: U.S. ENERGY COMPANY SHOWS SAVVY IN 
PURSUING AN OIL DEAL 
 
REF: ASHGABAT 207 
 
ASHGABAT 00000244  001.2 OF 002 
 
 
¶1. (U) Sensitive but Unclassified. Not for public Internet. 
 
¶2. (SBU) SUMMARY: Executives of recently-formed, 
Houston-based TX Oil, whose directors include a son of the 
41st U.S. President, met with Turkmen government officials, 
including President Berdimuhamedov, on February 24-25.  The 
purpose of the meetings was to explore and advocate for 
possible business opportunities in Turkmenistan's oil sector. 
 The company's directors were pleased with the tone of their 
high-level meetings.  Still, the meetings were exploratory 
for both sides and the executives acknowledge the prospects 
for cooperation remain uncertain.  END SUMMARY 
 
BACKGROUND 
 
¶3. (SBU) One TX Oil director has considerable in-country 
experience, having previously worked closely with 
Schlumberger and Bridas in Turkmenistan. TX Oil is interested 
in pursuing three different options in Turkmenistan: 
 
i) An oil and gas deal on Turkmenistan's Caspian coast, 
emulating the onshore Production Sharing Agreement (PSA) 
Mobil once held; 
ii) An oil intensification deal that would bring TX Oil's 
technology and services to existing oil wells in order to 
improve production; company representatives claim this type 
of project could easily double Turkmenistan's oil production; 
and 
iii) A possible partnership with Buried Hill to develop the 
Serdar field in the disputed region of the Caspian (reftel). 
 
MEETING WITH THE PRESIDENT 
 
¶4. (SBU) TX Oil directors, including a son of the 41st U.S. 
President, met with President Berdimuhamedov and several 
other Turkmen officials who deal with energy during their 
brief February 24-25 trip to Ashgabat. The purpose of the 
meetings was to explore and advocate for possible business 
opportunities in Turkmenistan's oil sector.  They immediately 
recognized the emphasis on form over substance in 
Turkmenistan and were both surprised and impressed at the 
rapid pace of construction in the capital. TX Oil directors 
hope to first build a more personal relationship with Turkmen 
officials in hopes it will lead to some of the proposed 
projects mentioned above. 
 
¶5. (SBU) According to the TX Oil directors, Berdimuhamedov 
had an impressive knowledge of the oil and gas sector in 
Turkmenistan.  They commented that the President discussed 
specific projects and issues at a level of detail that even 
surprised Deputy Chairman for Oil and Gas Baymyrat 
Hojamuhammedov.  The TX Oil officials were surprised by the 
amount of deference Hojamuhammedov showed to Berdimuhamedov 
during the meeting, constantly standing up when addressed and 
straightening his suit jacket.  The presidential meeting was 
featured on the front page of "Neutral Turkmenistan" 
newspaper on the following morning (February 25). 
 
¶6. (SBU) COMMENT:  While TX Oil might be a newcomer in the 
oil business, its directors showed considerable savvy in 
their approach to doing business in Turkmenistan.  Arranging 
a meeting with Berdimuhamedov has been well-nigh impossible 
for the major Western energy companies.  Bringing somone 
with close ties to the U.S. political elite was also 
well-aimed to get Berdimuhamedov's attention.  Finally the 
"wildcatter" aura of TX Oil is without a doubt far less 
intimidating to the Turkmen that the massive projects 
 
ASHGABAT 00000244  002.2 OF 002 
 
 
proposed by the Western majors.  If TX Oil is able to 
convince the Turkmen of the benefits of its technology, it 
might turn a positive introduction into a profitable business 
venture.  END COMMENT 
CURRAN