

Currently released so far... 12478 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AU
ASEC
AE
AF
AORC
AEMR
AMGT
ABUD
AFFAIRS
APER
AS
AMED
AY
AG
AR
AJ
AL
AID
AM
AODE
ABLD
AMG
AFIN
ATRN
AGAO
AFU
AN
AA
ALOW
APECO
ADM
ARF
ASEAN
APEC
AMBASSADOR
AO
ASUP
AZ
AADP
ACOA
ANET
AMCHAMS
ACABQ
ASECKFRDCVISKIRFPHUMSMIGEG
APCS
AGMT
AINF
AIT
AORL
ACS
AFSI
AFSN
ACBAQ
AFGHANISTAN
ADANA
ADPM
AX
ADCO
AECL
AMEX
ACAO
ASCH
AORG
AGR
AROC
ASIG
AND
ARM
AQ
ATFN
AC
AUC
ASEX
AER
AVERY
AGRICULTURE
BL
BR
BO
BA
BD
BM
BK
BG
BU
BB
BH
BTIO
BY
BEXP
BP
BE
BRUSSELS
BF
BIDEN
BT
BX
BC
BILAT
BN
BBSR
BTIU
BWC
BMGT
CA
CASC
CVIS
CM
CH
CO
CU
CD
CWC
CI
CS
CY
CMGT
CF
CG
CR
CB
CV
CW
CE
CBW
CT
CPAS
COUNTERTERRORISM
CJAN
CODEL
CIDA
CDG
CDC
CIA
CTR
CNARC
CSW
CN
CONS
CLINTON
COE
CROS
CARICOM
CONDOLEEZZA
COUNTER
CL
COM
CICTE
CIS
CFED
COUNTRY
CJUS
CBSA
CEUDA
CLMT
CAC
COPUOS
CIC
CBE
CHR
CTM
CVR
CITEL
CLEARANCE
CACS
CAN
CITT
CARSON
CACM
CDB
CAPC
CKGR
CBC
EC
EG
EPET
ECON
ETRD
EFIN
EIND
EMIN
ENRG
EAID
EAGR
EUN
ETTC
EAIR
ENIV
ES
EU
EINV
ELAB
ECIN
EFIS
ELTN
EWWT
ECPS
ECONOMIC
ENGR
EN
EINT
EPA
ELN
ESA
EZ
ER
ET
EFTA
EINVECONSENVCSJA
EUMEM
ETRA
EXTERNAL
EI
EUR
EK
ERNG
ENGY
ETRDEINVECINPGOVCS
ENERG
EINVEFIN
ENVR
ECA
ELECTIONS
ETC
EUREM
ENNP
EFINECONCS
EURN
ECINECONCS
EEPET
EXIM
ERD
ENVI
ETRC
ETRDEINVTINTCS
ETRO
EDU
ETRN
EAIG
ECONCS
ECONOMICS
EAP
ECONOMY
EINN
EIAR
EXBS
ECUN
EINDETRD
EREL
EUC
ESENV
ECONEFIN
ECIP
EFIM
EAIDS
ETRDECONWTOCS
EUNCH
EINVETC
IZ
IT
IR
IS
IN
IC
IAEA
IO
ICAO
IWC
ID
IV
ISRAEL
IAHRC
IQ
ICTR
IMF
IRS
IDP
IGAD
ICRC
ICTY
IMO
IL
INRA
INRO
ICJ
ITU
IBRD
INMARSAT
IIP
ITALY
IEFIN
IACI
ILO
INTELSAT
ILC
ITRA
IDA
INRB
IRC
INTERPOL
IA
IPR
IRAQI
ISRAELI
INTERNAL
ISLAMISTS
INDO
ITPHUM
ITPGOV
ITALIAN
IBET
INR
IEA
IZPREL
IRAJ
ITF
IF
KDEM
KU
KPAL
KNNP
KCRM
KZ
KN
KS
KJUS
KTFN
KSCA
KV
KISL
KPAO
KPKO
KIRF
KTIA
KIPR
KFLO
KFRD
KTIP
KAWC
KSUM
KCOM
KAID
KE
KTDB
KMDR
KOMC
KWBG
KDRG
KVPR
KTEX
KGIC
KWMN
KSCI
KCOR
KACT
KDDG
KHLS
KSAF
KFLU
KSEO
KMRS
KSPR
KOLY
KSEP
KVIR
KGHG
KIRC
KUNR
KIFR
KCIP
KMCA
KMPI
KBCT
KHSA
KICC
KIDE
KCRS
KMFO
KRVC
KRGY
KR
KAWK
KG
KFIN
KHIV
KBIO
KOCI
KBTR
KNEI
KPOA
KCFE
KPLS
KSTC
KHDP
KPRP
KCRCM
KLIG
KCFC
KTER
KREC
KTBT
KPRV
KSTH
KRIM
KRAD
KWAC
KWMM
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KOMS
KX
KMIG
KRCM
KVRP
KBTS
KPAONZ
KNUC
KNAR
KPWR
KNPP
KDEMAF
KNUP
KNNPMNUC
KERG
KGIT
KPAI
KTLA
KFSC
KCSY
KSAC
KTRD
KID
KOM
KMOC
KJUST
KGCC
KREL
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KFTFN
KO
KNSD
KHUM
KSEC
KCMR
KCHG
KICA
KPIN
KESS
KDEV
KCGC
KWWMN
KPAK
KWNM
KWMNCS
KRFD
MOPS
MCAP
MPOS
MARR
MO
MNUC
MX
MASS
MG
MY
MU
ML
MR
MILITARY
MTCRE
MT
MEPP
MA
MDC
MP
MAR
MASSMNUC
MARAD
MAPP
MZ
MD
MI
MEETINGS
MK
MCC
MEPN
MRCRE
MAS
MIL
MASC
MC
MV
MTCR
MIK
MUCN
MEDIA
MERCOSUR
MW
MOPPS
MTS
MLS
MILI
MTRE
MEPI
MQADHAFI
MAPS
NO
NATO
NL
NP
NZ
NSF
NI
NH
NG
NAFTA
NU
NASA
NR
NATOPREL
NSSP
NSG
NA
NT
NW
NK
NPT
NPA
NATIONAL
NPG
NSFO
NS
NSC
NE
NGO
NDP
NIPP
NRR
NEW
NZUS
NC
NAR
NV
NORAD
OTRA
OPCW
OVIP
OAS
OREP
OPIC
OIIP
OPRC
ODIP
OEXC
OPDC
OSCE
OIC
OSCI
OECD
OFDP
OFDA
OMIG
OPAD
OFFICIALS
OVP
OIE
OHUM
OCS
OBSP
OTR
OSAC
ON
OCII
OES
PGOV
PREL
PHUM
PTER
PINS
PINR
PREF
PK
PROP
PA
PARM
PBTS
PMAR
PM
PGIV
PE
PRAM
PHUH
PHSA
PL
PNAT
PO
PLN
PAO
PSA
PHUMPGOV
PF
PEL
PBIO
POLITICS
PHUMBA
PAS
POL
PREO
PAHO
PMIL
POGOV
POV
PAK
PNR
PRL
PG
PREFA
PSI
PINL
PU
PARMS
PRGOV
PALESTINIAN
PAIGH
POLITICAL
PARTIES
POSTS
PROG
PORG
PTBS
PUNE
POLICY
PDOV
PCI
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PBT
PP
PS
PY
PTERE
PGOF
PKFK
PSOE
PEPR
PPA
PINT
PRELP
PSEPC
PGOVE
PINF
PNG
PGOC
PFOR
PCUL
POLINT
PGGV
PHALANAGE
PARTY
PGOVLO
PHUS
PDEM
PECON
PROV
PHUMPREL
RS
RU
RELATIONS
RW
RO
RM
RP
ROOD
RICE
RUPREL
RSO
RCMP
REACTION
REPORT
REGION
RIGHTS
RF
RFE
RSP
RIGHTSPOLMIL
ROBERT
SU
SCUL
SNAR
SOCI
SF
SA
SHUM
SENV
SP
SR
SY
SANC
SC
SMIG
SZ
SARS
SW
SEVN
SO
SEN
SL
SNARCS
SNARN
SI
SG
SN
SH
SYR
SAARC
SPCE
SHI
SCRS
SENVKGHG
SYRIA
SWE
STEINBERG
SIPRS
ST
SNARIZ
SSA
SK
SPCVIS
SOFA
SIPDIS
SAN
TC
TI
TBIO
TH
TSPL
TRGY
TSPA
TPHY
TU
TW
TS
TAGS
TK
TX
TNGD
TZ
TF
TL
TV
TN
TD
TIP
TR
TP
TO
TT
TFIN
THPY
TERRORISM
TINT
TRSY
TURKEY
TBID
US
UK
UNGA
UP
UZ
UNMIK
USTR
UNO
UNSC
UN
UNESCO
UNAUS
UNHRC
UY
UG
UNHCR
UNCND
USOAS
USEU
UNICEF
UNEP
UV
UNPUOS
UNCSD
USUN
UNCHR
UNDC
USNC
UE
UNDP
UNC
USPS
USAID
UNVIE
UAE
UNFICYP
UNODC
UNCHS
UNIDROIT
UNDESCO
UNCHC
Browse by classification
Community resources
courage is contagious
Viewing cable 06BAKU1661, BP AZERBAIJAN PRESIDENT SAYS AZERBAIJAN MOVING
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06BAKU1661.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
06BAKU1661 | 2006-11-15 11:38 | 2010-12-15 21:30 | CONFIDENTIAL | Embassy Baku |
VZCZCXRO9410
PP RUEHAG RUEHBC RUEHDBU RUEHDE RUEHDIR RUEHKUK RUEHROV
DE RUEHKB #1661/01 3191138
ZNY CCCCC ZZH
P 151138Z NOV 06
FM AMEMBASSY BAKU
TO RUEHC/SECSTATE WASHDC PRIORITY 1689
INFO RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES
RUCNIRA/IRAN COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 1832
RUEHBS/AMEMBASSY BRUSSELS 0139
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEKDIA/DIA WASHDC
RUEAIIA/CIA WASHINGTON DC
Wednesday, 15 November 2006, 11:38
C O N F I D E N T I A L SECTION 01 OF 03 BAKU 001661
SIPDIS
SIPDIS
EO 12958 DECL: 11/15/2016
TAGS AJ, PGOV, PREL, EPET, ENRG, RU
SUBJECT: BP AZERBAIJAN PRESIDENT SAYS AZERBAIJAN MOVING
SLOWLY TO ADDRESS GAS PROBLEM
REF: ANKARA 006396
Classified By: Ambassador Anne. E. Derse, Reasons 1.4 (B,D)
¶1. (C) SUMMARY: At a November 10 Azerbaijan International Oil Company briefing, outgoing BP Azerbaijan President David Woodward told the Ambassador that according to SOCAR President Rovnaq Abdullayev, Turkey had not agreed to forego its contracted for 2007 Shah Deniz gas deliveries as a way of helping Azerbaijan and Georgia with their winter gas problems, although they were willing to defer delivery of some amounts if the contracted for price of USD 120 per thousand cubic meters remained the same. Woodward said that Turkey was declaring itself ready to receive Shah Deniz gas, although he himself had doubts. He said that a joint BP-SOCAR working group would start work soon to discuss ways of redressing possible GOAJ domestic gas shortages in winter 2007. END SUMMARY.
¶2. (C) On November 10 the Ambassador attended an Azerbaijan International Oil Company briefing headed by outgoing BP Azerbaijan President David Woodward. Other attendees were incoming BP Azerbaijan President Bill Schrader, BP Group Azerbaijan Director for Communications and External Affairs Clare Bebbington, UK Ambassador Laurie Bristow, UK EconOff, and Econoff as notetaker.
READ-OUT OF TU-GOAJ MEETING
--------------------------------------------- --
¶3. (C) Woodward gave a read-out of his November 2 meeting with SOCAR President Rovnaq Abdullayev. This meeting, prompted by the visit to Azerbaijan of BP Executive Vice-President and Deputy Chief Executive of Exploration and Production Andy Inglis, occurred right after Abdullayev had returned from Turkey with Deputy Prime Minister Abid Sharifov, where they had notified Turkey of intended delays in GOAJ 2007 Shah Deniz gas deliveries. Abdullayev, fresh off the plane, provided Woodward and Inglis a read-out of his Turkey meeting with Energy Minister Gular and Botas. Rovnaq told them that Botas would not sign the document he had brought, in which Turkey was asked to agree to GOAJ providing no Shah Deniz gas in 2007 and in which the GOAJ sought to re-open Shah Deniz price negotiations. Turkey insisted on receiving its contracted for 2007 three billion cubic meters (bcm) of Shah Deniz gas at the agreed upon price of USD 120 per thousand cubic meter (tcm), but said it did not have to receive it all in 2007. It proposed that it could take half (1.5 bcm) in winter 2007, with the rest to be received in 2008 or 2009, at the contracted price of USD 120/tcm. Abdullayev told Inglis that he had gotten Turkey to agree that it would be a transit country for Shah Deniz gas (vice a buyer-seller).
¶4. (C) During this November 2 meeting with Abdullayev and Sharifov, Energy Minister Gular also said that Turkey was ready to receive Shah Deniz gas. In this regard, Woodward said that he thinks that Botas will ask for commissioning gas during the week of November 13-17. As to how ready Turkey actually is to receive Shah Deniz gas, Woodward said that the BP opinion is that Botas still has a lot of work to do to complete the pipeline to include work on the valve stations, and that if the work were done in accordance with international standards then the pipeline might not be ready until spring 2007. However, he added that “it was not inconceivable” that Botas could “rush finish” the job so that it would be ready to receive gas shortly, although the pipeline would not meet international standards.
ACG PROBLEM RESOLUTION
-----------------------------------------
¶5. (C) Woodward said that during the recent visit of BP Executive Inglis, BP had given both President Aliyev and SOCAR President Abdullayev a copy of a BP ‘white paper’ on the way forward for Azerbaijan in the energy sector, (a copy of which he gave to the Ambassador), with the focus on four main themes:
- ACG Maximum Development: Resolving current issues associated with ACG to maximize recovery - Short/medium/long term gas issues: Short-term - how to address this winter’s gas needs; Medium/Long-term: how best
BAKU 00001661 002 OF 003
to identify and exploit GOAJ gas reserves - SOCAR: how to help make SOCAR an energy company that meets international standards - BP Social Programs: putting a ‘harder edge’ on them, to help build capacity in Azerbaijan
¶6. (C) Woodward said that there were a series of outstanding ACG-related issues the resolution of which involved billions of dollars and which the AIOC partners were trying to resolve with SOCAR in a package, vice individually. In the November 2 meeting between SOCAR President Rovnaq Abdullayev and BP executive Inglis, Abdullayev said that he would head the SOCAR ACG steering group dealing with these problems, and that SOCAR VP Elshad Nassirov would be the SOCAR working level representative. Abdullayev also said he would head the SOCAR team on the BP-SOCAR gas working group, with Nassirov again the working-level representative. Woodward said that Abdullayev had an unrealistic expectation of how quickly these outstanding ACG issues could be resolved: whereas BP thinks that a framework within which to discuss the issues could be agreed upon by January, with actual negotiations over these issues lasting up to six months, Woodward said that Abdullayev told Inglis that the issues could be solved ‘within a few days.’
¶7. (C) Woodward said that Abdullayev did not show much willingness to engage with BP re Azerbaijan’s short-term (Winter 07) gas problems, contending that AIOC giving SOCAR more associated ACG gas could solve the problem. (Note: AIOC is scheduled to give 1.4 bcm of associated ACG gas to SOCAR in 2007; SOCAR is arguing that AIOC does not need to re-inject any ACG associated gas back into the well, and wants 3 bcm). Woodward said that all sides seemed to be waiting for the results of the President Aliyev-President Putin meeting in Moscow, although he himself doubted whether the two would reach any definitive agreement, as everyone is waiting to see the results of the various CIS bilateral Gazprom negotiations, to see if the USD 230/tcm level will hold.
BP GEORGIA GAS READOUT
----------------------------------------
¶8. (C) Woodward said he and his replacement Bill Schrader had just returned from Georgia, where they had met separately with the Georgian Energy Minister, Environment Minister and Prime Minister, among others. At these meetings the Georgian proposal of a November three-way gas-focused Turkish-Azerbaijani-Georgian ministerial-level meeting in Tblisi or Ankara was discussed, although nothing definite had been agreed to by all parties. In their meetings, the GOG interlocutors had referred to Turkey’s Summer 2007 ‘agreement in principle’ to supply Georgia from its own Shah Deniz gas, although Woodward said in his opinion all Turkey had agreed to at that time was a ‘bring us a proposal and we’ll have a look at it’ type agreement. Woodward said that the GOG Energy Minister had told him that GA would not buy gas from Gazprom at USD 230/tcm, and that Turkey would supply GOG with 1.5 bcm in 2007. Woodward said the GOG PM was more realistic, saying that perhaps Georgia could get 0.8 to 1.2 bcm from Turkey in 2007. Woodward said the GOG PM seemed more relaxed about the upcoming winter gas situation than did the Energy Minister, and more concerned about Shah Deniz Stage Two-related issues, stating that, inter alia, Georgia and Azerbaijan should look at gas storage issues together, vice separately. Woodward said he got the impression that GOG was more concerned about the economics of gas purchases from Gazprom than the supply itself, and he noted that despite the intense rhetoric flowing between Russia and Georgia, the energy continues to flow.
SD PRODUCTION
------------------------
¶9. (C) Woodward agreed that Shah Deniz was experiencing production delays, but said that other issues would play a more determinative role in deciding where Shah Deniz gas went, such as the GOG technical capacity to uptake Shah Deniz gas at its border with Azerbaijan. He said that the Gas Pressure Reduction and Metering Station at Pump Station One in Georgia has a maximum daily design throughput of 4.0 million cubic meters, equivalent to 1.46 bcm/a at one hundred percent load (note: this compares to currently contracted
BAKU 00001661 003 OF 003
quantities which build up to around 08. bcm/a by 2011). As such, he said that part of the work of the SOCAR-BP gas working group that would be meeting imminently would be to model how much gas Georgia could uptake from Azerbaijan from a technical viewpoint. He noted that in addition to the SCP (i.e. Shah Deniz) pipeline, there was also the possibility of transferring gas from Azerbaijan to Georgia through the Azerbaijani gas system. As for Shah Deniz gas itself, Woodward said that as soon as the first two of the four wells start flowing (mid-November and late December respectively), will it be clear how quickly and how much production will be available for winter 2007.
¶10. (C) COMMENT: Before determining what steps to take to redress any possible winter 07 gas shortages in Azerbaijan and Georgia, Azerbaijan first needs to assess its current gas balance and possible alternative supply options. In this regard it is encouraging to hear that the joint BP-SOCAR gas working group is scheduled to meet the week of November 12. Woodward however was disparaging of the selection of SOCAR President Rovnaq Abdullayev and Deputy Prime Minister Sharifov as the GOAJ officials sent to Ankara to deal with the Turkish government (indeed, a Statoil representative told the Ambassador that Abdullayev had taken the wrong version of the Shah Deniz contract to the discussions), and despaired of any solution to the short-term regional problem occurring if management of the issue stayed at the SOCAR level. As such, he requested USG help in convincing Turkey to meet with Azerbaijan and Georgia. Now that Turkey is doing so (see reftel), Embassy will seek to ensure that the GOAJ participates at the appropriate level. END COMMENT. DERSE