Turkmenistan: Generalities (So Far) at the Annual Gas Jamboree

Turkmenistan Golden Age

Oil and Gas Turkmenistan, November 15, 2011

Turkmenistan's annual Oil and Gas Conference opened today, with hundreds of energy executives and government officials flocking to Ashgabat to see if the president -- who decides everything -- will do any further "diversifying" of his country's vast hydrocarbons reserves.

In greetings sent to the conference (he typically doesn't attend in person), President Gurbanguly Berdymukhamedov actually didn't include his usual boilerplate on "diversification" policy, i.e. the drive to create alternative routes to end dependency on Russia, which in any event isn't buying much Turkmen gas these days. He focused more on the importance of acquiring high technology.

And while the Turkmen leader has appeared to specifically endorse the Trans-Caspian pipeline project of late, and even mentioned Nabucco, he didn't mention any concrete projects today, according to the State News Agency of Turkmenistan (TDH):

Turkmenistan's policy is aimed at the leading development of the oil and gas complex, where the main priorities are advanced technology, the latest equipment, in order to ensure the effective exploitation of Turkmenistan's gigantic potential as a world energy power. The head of state expressed confidence that the current exhibit would become yet another good opportunity to determine promising directions for joint work on mutually advantageous terms with everyone who wishes to become a partner of our country.

Berdymukhamedov has just traveled to Pakistan, where he reportedly finally clinched a deal on the price Islamabad will pay for Turkmen gas in the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline. But there are still obstacles to the project, namely security, and in that regard, it was troublesome that in his meetings with the Pakistani leadership, the security officials were all missing.

Typically, any actual new news from these conferences comes later from Turkmen oil and gas ministers, not from the president, so watch that space.

The line-up of companies mentioned as "Turkmenistan's partners" in the official media are an indication of Turkmenistan's best friends these days:

Malaysia's Petronas, The British-Arab joint venture Dragon Oil; the Chinese National Petroleum Company, Germany's RWE; France's Schlumberger, Itera of Russia (not Gazprom), the Belarusian Yarav (a newcomer to this list), "and others."

BP wasn't mentioned, despite being a "platinum" sponsor, nor was Chevron, despite being a "gold" sponsor; according to the conference organizer's list of sponsors. ConocoPhilips was a "silver" sponsor. Petronas, Schlumberger, and Itera were all "bronze" sponsors.

Last year's conference attracted 700 participants. This year has only 500 delegates from energy and engineering companies as noted, as well as the governments of the US, Russia, United Kingdom, China, France, United Arab Emirates, Japan, Azerbaijan, and the European Union, says TDH.

The exhibit runs through November 17, and will also involve a "scientific conference." Investors are assured of "a solid legislative base" in Turkmenistan, says TDH.

Of course, Russia's mobile company MTS, whose service was abruptly shut off at the expiration of a contract, and which was forced to leave the country, losing its investment, would beg to disagree -- as would others who have spent long years waiting for drilling permits.