08ASTANA1121, TIMUR KULIBAYEV VISITS THE EMBASSY

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Reference ID Created Released Classification Origin
08ASTANA1121 2008-06-16 11:39 2011-08-30 01:44 CONFIDENTIAL Embassy Astana

VZCZCXYZ0000
PP RUEHWEB

DE RUEHTA #1121 1681139
ZNY CCCCC ZZH
P 161139Z JUN 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC PRIORITY 2609
INFO RUCNCIS/CIS COLLECTIVE 0529
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC

C O N F I D E N T I A L ASTANA 001121 
 
SIPDIS 
 
STATE FOR SCA/CEN M. O'MARA, EEB 
DOE FOR EKIMOFF 
COMMERCE FOR HUEPER 
 
E.O. 12958: DECL: 06/13/2018 
TAGS: PGOV PREL EPET KZ
SUBJECT: TIMUR KULIBAYEV VISITS THE EMBASSY 
 
Classified By: AMBASSADOR ORDWAY FOR REASONS 1.4(B) AND (D) 
 
1. (C) Summary: Timur Kulibayev, Chairman of KazEnergy 
Association and son-in-law of President Nazarbayev, met with 
the Ambassador on June 12 and toured the Embassy. During his 
conversation with the Ambassador, Kulibayev discussed changes 
at KazMunayGas, described relations with Russia as improving, 
stressed the importance of Trans-Caspian oil transportation, 
and expressed skepticism about Turkmenistan's intent to send 
gas westwards.  End Summary 
 
2. (C) During a June 12 tour of the Embassy with the 
Ambassador, Timur Kulibayev noted that he first brought new 
KazMunayGas Chairman Serik Burkitbayev in to the company 
(Note: Kulibayev was referring to Burkitbayev's tenure from 
2003-2007 as Director of the Kazakhstan Oil and Gas 
Institute, a KMG subsidiary) and called him a good manager. 
Kulibayev said that two different visions are in competition 
at KMG, but offered no details. 
 
3. (C) Kulibayev told the Ambassador that possibilities for 
cooperation with Russia have increased with the departure of 
Transneft's Semyen Vaynshtok, and he said that in principle 
he sees no reason to believe that CPC will not be expanded. 
Kulibayev indicated, however, that his focus is on the 
Kazakhstan Caspian Transportation System (KCTS).  He believes 
that there will be BTC expansion with a second parallel 
pipeline, but said the key development will be a pipeline up 
through Georgia to the Black Sea. 
 
4. (C) Kulibayev was skeptical about Turkmenistan.  According 
to Kulibayev, Turkmenistan's flirtations with trans-Caspian 
gas are intended only to achieve better deals with existing 
partners.  Moreover, Turkmenistan has already oversold, he 
said. 
 
5. (C) Domestically, Kulibayev criticized Kazakhstan for not 
developing new oil fields.  On changes to the tax code, he 
said Kazakhstan faces a conflict between providing the stable 
tax regimes guaranteed under PSAs and the desire to ensure 
equal conditions for all companies. Kulibayev would like 
KazEnergy to be more active, and sees a role for it in areas 
like developing regulations and environmental standards. 
(Note: On June 11, Prime Minister Masimov chaired a meeting 
of the Commission for Development of the Oil and Gas and 
Energy Industry.  The Commission agreed to consider proposals 
of KazEnergy on a new tax code.  Masimov ordered the creation 
of a working group to develop a new tax code and to review 
the KazEnergy proposals. On June 13, Prime Minister Masimov 
told the Ambassador that the GOK will not seek to renegotiate 
the contractual terms for Kashagan, Karachaganak, and Tengiz. 
The existing contracts will be sent to Parliament for 
ratification, ensuring the continued viability of their 
contractual tax stabilization clauses, regardless of changes 
in the tax code that will be applied to all other fields in 
Kazakhstan ). 
 
6. (C) Kulibayev attended a meeting between President 
Nazarbayev and Chevron CEO David O'Reilly the week before in 
Atyrau and told the Ambassador that an agreement has been 
reached on the sulfur issue.  The Ambassador mentioned a 
planned trip in July of Special Envoy for Eurasian Energy C. 
Boyden Gray and Coordinator for Eurasian Energy Diplomacy 
Steve Mann. Kulibayev said he would be happy to meet with 
them. 
 
7. (C) Comment: Kulibayev's discussion with the Ambassador 
demonstrates that he remains one of the most thoughtful and 
knowledgeable interlocutors on energy issues in Kazakhstan. 
The depth of his knowledge, and his recent participation in 
important meetings with the Prime Minister and the President, 
also indicate that he is still privy to the innermost 
dealings of Kazakhstan's energy sector, contrary to recent 
rumors that Nazarbayev had pushed him to the sidelines. End 
Comment 
ORDWAY

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