Turkmenistan falsified data on gas reserves in the country
13.10.2009. Category:Turkmenistan
Vienna, 13.10.09-ETG On Sunday evening, during an emergency meeting of the Turkmen Government, it became evident what sources like „Eurasian Transition Group“ already reported back in 2008 and earlier this year and which could have an important impact on the energy policy of the Caspian region and the future construction plans of pipelines like the Nabucco project.
The falsified data of Turkmen gas resources are related to the Iolatan-Osman deposits, which were audited by the UK-based company Gaffney, Cline&Associates after a contract was signed with the Turkmen Government. According to various reports – Bloomberg did a story on that – the deposits of the gas field could be „super giant“, ist reserves estimated at about 6 trillion cubic metres, two times more than for example estimated reserves of Shtokman in Russiawith about 3.7 trillion cubic metres. All those data were presented by Jim Gillet, manager of the British company during a conference on Turkmenistan’s huge gas resources in February 2009 in London.
In early October this year, Turkmen authorities confirmed again the results of the company’s report. But when Western companies showed their interest in participating in a tender for exploitation of those gas fields, the fake became public in those circles, because some experts of the Western companies could not believe the data they were provided by Turkmen officials, who sold the numbers illegally to the managers.
According to Turkmen legislation, one of the tender conditions was the purchase of some documents package, containing technical characteristics, at the price of a few hundred thousand US dollars. Obviously, the officials of Turkmen oil and gas industry provided the potential investors with unclear information that produced suspicion. The supreme authorities learned about this situation and the scandal started escalating. According to sources in the Turkmen administration, the Government is now claiming, that only 2 trillion cubic metres gas reserves might be realistic.
It is still not clear, whether or not Gaffney, Cline&Associates was directly involved in the scandal. ETG sources received informations from inside the Turkmen Administration that the „massage“ of possible non comfortable numbers was part of the contract between Turkmenistan and the British company. Another possibility might bet hat Turkmen authorities from the beginning did not allow an independent analysis of the Iolatan-Osman gas field, but only provided incorrect numbers of results, produced by Turkmen specialists. In this case nevertheless, Gaffney, Cline&Associates has to be responsible for its audit.
As a result of the scandal, President Berdymukhamedov dimissed almost every single manager of the gas industry; they were replaced by people unknown for foreigners. O. Nurmyradov was appointed new Minister for Oil and Gas, a former department head at Turkmengaz.
Meanwhile, an investigation started within Government circles, who delivered the confidential data to Western companies. Some members of the Turkmen gas industry were already arrested.
Menawhile, a press release by Gaffney, Cline & Associates say that the data, provided by the Turkmen authorities, were adequate.
The falsified data of Turkmen gas resources are related to the Iolatan-Osman deposits, which were audited by the UK-based company Gaffney, Cline&Associates after a contract was signed with the Turkmen Government. According to various reports – Bloomberg did a story on that – the deposits of the gas field could be „super giant“, ist reserves estimated at about 6 trillion cubic metres, two times more than for example estimated reserves of Shtokman in Russiawith about 3.7 trillion cubic metres. All those data were presented by Jim Gillet, manager of the British company during a conference on Turkmenistan’s huge gas resources in February 2009 in London.
In early October this year, Turkmen authorities confirmed again the results of the company’s report. But when Western companies showed their interest in participating in a tender for exploitation of those gas fields, the fake became public in those circles, because some experts of the Western companies could not believe the data they were provided by Turkmen officials, who sold the numbers illegally to the managers.
According to Turkmen legislation, one of the tender conditions was the purchase of some documents package, containing technical characteristics, at the price of a few hundred thousand US dollars. Obviously, the officials of Turkmen oil and gas industry provided the potential investors with unclear information that produced suspicion. The supreme authorities learned about this situation and the scandal started escalating. According to sources in the Turkmen administration, the Government is now claiming, that only 2 trillion cubic metres gas reserves might be realistic.
It is still not clear, whether or not Gaffney, Cline&Associates was directly involved in the scandal. ETG sources received informations from inside the Turkmen Administration that the „massage“ of possible non comfortable numbers was part of the contract between Turkmenistan and the British company. Another possibility might bet hat Turkmen authorities from the beginning did not allow an independent analysis of the Iolatan-Osman gas field, but only provided incorrect numbers of results, produced by Turkmen specialists. In this case nevertheless, Gaffney, Cline&Associates has to be responsible for its audit.
As a result of the scandal, President Berdymukhamedov dimissed almost every single manager of the gas industry; they were replaced by people unknown for foreigners. O. Nurmyradov was appointed new Minister for Oil and Gas, a former department head at Turkmengaz.
Meanwhile, an investigation started within Government circles, who delivered the confidential data to Western companies. Some members of the Turkmen gas industry were already arrested.
Menawhile, a press release by Gaffney, Cline & Associates say that the data, provided by the Turkmen authorities, were adequate.