US embassy cable - 05BAGHDAD4449

S E C R E T SECTION 01 OF 02 BAGHDAD 004449 
 
SIPDIS 
 
NOFORN 
 
E.O. 12958: DECL: 10/31/2015 
TAGS: ENRG, EPET, EFIN, ECON, MASS, MOPS, PGOV, PREL, IZ, TU, Energy Sector, Petrolium 
SUBJECT: IRAQI ENERGY COUNCIL IN DISARRAY 
 
REF: BAGHDAD 4356 AND PREVIOUS 
 
Classified By: Classified by Economic Minister Counselor Tom Delare for 
 reasons 1.4 (b) and (d) 
 
 1. (C) SUMMARY: The National Energy Council (NEC) assessed 
the energy infrastructure siege of Baghdad October 27. 
Attacks against infrastructure in the North have cut off the 
oil flow to Baghdad and Turkey, reducing fuel supplies in 
parts of Iraq to critically low levels.  Deputy Prime 
Minister Chalabi and several members of the council spoke 
against what he called ineffective MNF-I security of the 
pipelines.  After a sharp exchange with Chalabi over 
insufficient intelligence and corruption, the Minister of 
Industry and Minerals, Usama Al Najafi, resigned from the NEC 
in protest. END SUMMARY. 
 
2.  (SBU) Deputy Prime Minister (DPM) Ahmed Chalabi chaired 
the National Energy Council meeting October 27.  Minister of 
Oil (MOO) Bahr Al-Ulum, Minister of Water Resources (MOWR) 
Abdul Latif Rasheed, Minister of Electricity (MOE) Muhsin 
Shallash, Minister of Industry and Minerals (MIM) Usama al 
Najafi, Chief of Staff of the Iraqi Armed Forces LTG Abadi, 
Infrastructure Coordination Cell (ICC) Chief, BG Kamal, 
Ministry of Interior consultant Dr. Abraham, Ministry of Oil 
Intelligence Chief, Colonel Jaburi, MNF-I STRATOPS, and 
ECONOFF attended. 
 
---------------------------------- 
KEY INFRASTRUCTURE ATTACK REVIEWED 
---------------------------------- 
 
3. (C) DPM Chalabi started the meeting by stating, "We are in 
bad shape.  Oil from Kirkuk is still cut off, and no 
pipelines are able to provide fuel to Baghdad from Bayji." 
Chalabi said that although SIBs had reported that mortars had 
cut the pipelines from Kirkuk, it was actually done with IEDs 
planted by the insurgents.  &The insurgents were from the 
2nd Battalion of the Strategic Infrastructure Brigade along 
the pipeline,8 according to Chalabi, who suggested 
"threatening the battalion commander."  Chalabi reported that 
two of the three electrical lines from Bayji/Kirkuk to 
Baghdad were operational, and that no trains had been 
attacked this week.  MOWR Latif stated, "There has been no 
improvement in security in the past five months;" MOO 
al- Ulum added, "The insurgents are doing very well." 
 
-------------------------------- 
INFRASTRUCTURE PROTECTION STATUS 
-------------------------------- 
 
4.  (C) DPM Chalabi, in a very animated style, told the 
council, "Gen Casey has placed a high priority on 
infrastructure security compared to four months ago.  This 
committee has influenced MNF to increase the importance of 
infrastructure security.8 DPM Chalabi went on to say, "Where 
is the Iraqi Army?  Why are they not doing their job of 
defending the pipelines?  We need to move these battalions 
that are not doing their jobs-replace them." Chalabi 
continued in what appeared to be an effort to appease other 
council members, "General Casey commands the Iraqi Army, he 
is the only one that can prevent these attacks.  MG Parker 
has presented a plan." 
 
5.  (C) DPM Chalabi suggested building a pipeline to Turkey 
through Kurdish-controlled territory to enable the export of 
Kirkuk oil.  The Kurdish Government could guard that new 
pipeline.  MOO al- Ulum supported this proposal.  MIM 
al-Najafi was opposed, suggesting instead "We need to solve 
our current problems, not build a new pipeline." (NOTE: This 
is not the first time an alternate pipeline through Kurdish 
territory has been discussed in the NEC. END NOTE) 
 
--------------------------------------------- ---- 
INTELLIGENCE SUPPORT DISPUTE; MIM RESIGNS FROM NEC 
--------------------------------------------- ---- 
 
6.  (SBU) MIM al-Najafi demanded to know why Chalabi had not 
set up an intelligence unit to add security to the 
infrastructure protection effort as promised.  Al-Najafi 
accused Chalabi of lying and threatened to resign.  Chalabi 
refuted al-Najafi,s accusation, saying that he had set up 
the JCCI (Joint Coordination, Communication and Intelligence) 
Center, which was an organized effort to find out who are 
doing these attacks on the infrastructure.  MIM al-Najafi 
responded, "I am resigning (from the NEC).  This is my last 
meeting.  There is corruption and no one is taking this 
seriously."  Chalabi responded that al-Najafi could go ahead 
and resign from the council. 
 
--------------------------------------------- - 
REPORT OF THE PROBLEM AT WEST QURNAH OIL FIELD 
--------------------------------------------- - 
 
7.  (S/NF) Chalabi said that 35,000 barrels per day of oil 
were being lost from the West Qurnah oil field.  He said the 
GOI does not know what is occurring, adding that Iraqi 
intelligence is attempting to determine who is controlling 
the oilfields.  &There are many suspects,8 Chalabi said, 
adding that &there appears to be corruption, and the tribes 
are stealing the oil."  MOO al- Ulum responded, "We need to 
pay them more, bribe them." (NOTE:  MNF-I is investigating 
the request from the DPM to intercede with military force in 
West Qurna.  It is unclear at this point what is occurring at 
West Qurna Oil Fields. The FPS Commander of West Qurnah Oil 
Field is COL Abdul an employee of the Southern Oil Company. 
END NOTE) MNF-I representative informed the council that they 
were attempting to ascertain the facts on what is going on at 
West Qurna, as requested.  MNF-I representative also informed 
the council that they were very interested in who was 
responsible for hijacking a million dollars of oil per day in 
revenue from West Qurna and that they would look very closely 
at who was responsible, their relationships with others, and 
where the money was going.  At this statement, DPM Chalabi 
glanced toward the Minister of Oil and said, &There are 
political groups taking advantage of the situation in West 
Qurna.  Terrorists are working inside the government 
organizations.8 
 
-------------------------------- 
CONCERN FOR MUSAYYIB POWER PLANT 
--------------------------------- 
 
8.  (C) Chalabi informed the Council that he expected the 
Musayyib power plant to be attacked.  &The pipeline to 
supply it with fuel has been repaired, so when the 500 MW of 
generation comes on-line, I think it will be attacked." 
Chalabi asked LTG Abadi to plan for the defense of Musayyib. 
 
------- 
COMMENT 
------- 
 
9.  (C) COMMENT: The ministers, disappointment over the 
ability of the Council to influence the commitment of 
military forces and intelligence assets to provide protection 
to the critical infrastructure was evident.  The normal 
politeness of the meeting was frayed, with hostilities 
culminating in al-Najafi,s resignation from the NEC.  END 
COMMENT 
 
 
 
 
 
Satterfield