US embassy cable - 03ANKARA6302

C O N F I D E N T I A L ANKARA 006302 
 
SIPDIS 
 
 
FOR CPA ADVISER TO IRAQ OIL MINISTRY 
 
 
E.O. 12958: DECL: 10/06/2013 
TAGS: EPET, ETRD, IZ, PREL, TU 
SUBJECT: TURKEY RAISES CONCERN ABOUT STALLED OIL EXPORTS 
THROUGH TURKEY 
 
CLASSIFIED BY DCM ROBERT DEUTSCH FOR REASONS 1.5 (b) AND (d). 
 
 
 
 
1.  (U) Baghdad Minimize considered. 
 
 
2.  (C) Turkish officials are concerned by recent press 
reports that Iraq has decided to suspend oil exports through 
Ceyhan, diverting the Kirkuk crude through pipelines to the 
south.  MFA Director General for Energy and Water Hakki Akil 
told EconCouns that Turkey learned of the apparent decision 
through the press and asked if the USG could verify the 
report.  ECONCouns responded that we were not aware of any 
decision, only that repair work on the pipeline was 
continuing.  Akil said that under the terms of SOMO's 
agreement with Turkey, Iraq must export 35 million tonnes of 
crude per year through the pipeline or face penalties. 
Mehmet Bilgic, the head of Turkey's state pipelines and 
natural gas company, also raised his concern that the 
coalition has not yet resumed exporting Iraqi crude through 
the Kirkuk-Ceyhan pipeline and that there was little 
communication from Baghdad on these matters.  Bilgic noted 
that the suspension of exports through the pipeline resulted 
in enormous revenue losses for Iraq -- and Turkey. Bilgic 
said that BOTAS had offered to help in the repair work and to 
provide firefighting teams, but the authorities in Baghdad 
had not responded to BOTAS's offer. 
 
 
2.  (C) Action Request:  Turkish officials were surprised by 
reports that Iraqi authorities have decided to suspend oil 
exports through the pipeline for another six months.  Such a 
long delay would be a serious blow for the GOT.  They are 
frustrated that they have not been more involved in the 
pipeline project and are concerned that any decision not to 
use Kirkuk-Ceyhan might represent a change in U.S. policy. 
We believe improved, sustained communications between SOMO 
and BOTAS would be beneficial and request CPA's assistance in 
encouraging this dialogue.  In addition, Embassy requests 
that Department/CPA advise on the status of the pipeline and 
on what, if any, decisions have been made on diverting oil 
from Kirkuk south.  Embassy also requests points for use with 
GOT officials on this subject.  Finally, Embassy would 
appreciate any information about the status of the offer made 
by BOTAS to Iraqi authorities to assist with pipeline 
repairs. 
EDELMAN