US embassy cable - 05BAGHDAD4851

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 004851 
 
SIPDIS 
 
E.O. 12958: DECL: 12/02/2015 
TAGS: ECON, ENRG, EPET, MOPS, MARR, PGOV, IZ, Petrolium, Energy Sector 
SUBJECT: NATIONAL ENERGY COUNCIL ACTS TO ENSURE ADEQUATE 
FUEL SUPPLIES TO BAGHDAD DURING ELECTIONS 
 
Classified By: A/Economic Minister Counselor Harry O'Hara for reasons 1 
.4 (b) and (d). 
 
1.  (C) Summary: The National Energy Council decided December 
1 to stockpile almost 4 million gallons of gasoline and 2.6 
million gallons of diesel in Baghdad to ensure adequate 
supplies in the capitol during the elections.  Exports from 
the north will be kept minimal in the coming weeks so that 
Bayji refinery is assured a steady supply of crude.  Deputy 
Prime Minister Chalabi ordered workers and security forces to 
co-locate in "work camps" in the north to provide better 
security for repair crews.  Perforation charges from well 
workovers alone will not increase production from the Qurnah 
oil field.  End Summary. 
 
2.  (SBU) Deputy Prime Minister (DPM) Ahmad Chalabi chaired 
the National Energy Council (NEC) December 1.  Also present 
were Minister of Electricity (MoE) Dr. Muhsin Shalash, MoE 
Security Advisor General Sa'ad, representatives from the 
Ministries of Oil, Transportation and Defense, MNC-I Deputy 
Commander Major General Parker, MNF-I advisors, and Econ and 
Pol/Mil officers. 
 
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Fuel Supply 
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3.  (C) DPM Chalabi agreed with MNF-I to keep crude oil 
exports from the north minimal in coming weeks in order to 
ensure that sufficient crude supplies are on hand for 
domestic refining in the run-up to the election.  Currently, 
no northern crude oil is being exported, as storage 
facilities at IT1-A are being refilled.  It was agreed that 
security at Bayji be increased, as the refinery's continued 
operation is crucial in the coming weeks.  Chalabi directed 
that the NEC issue an order to the Ministry of Oil (MoO) to 
stockpile almost 4 million gallons of gasoline and 2.6 
gallons of diesel for use in Baghdad during the elections. 
General Parker noted that the GOI must ensure an adequate 
distribution plan for these supplies. 
 
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Chalabi Approves Repair Crew Work Camps 
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4.  (C) MNF-I reported that, although Coalition and Iraqi 
forces are camped at al-Riyadh, pipeline repair crews had 
not yet returned to work.  Chalabi directed NEC staff to 
draft a decision of the NEC ordering that repair crews be 
brought in from other areas and co-located in camps with 
military forces.  Chalabi said that these workers would be 
less susceptible to threats to themselves and their families. 
 
 
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Surveillance Increase Pays Off 
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5.  (C) MNF-I reported increased surveillance by unmanned 
aerial vehicles (UAVs) and helicopters led to the successful 
disruption of a team of saboteurs attempting to loot power 
lines in the Baghdad-Bayji corridor, near Samarra.  Increased 
MNF-I activity had also identified and engaged other parties 
of looters and discovered a number of IED factories.  MNF-I 
said that the US forces are focused on the al-Fatah area and 
are working closely with Parsons 
on security. 
 
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Electricity 
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6.  (C) DPM Chalabi reported that the Council of Ministers 
had approved December 1 the additional money necessary for 
expanding the Yusifiyah power plant to add an additional 500 
MW of power to the national grid.  Another project at 
Mussayib is expected to add some 600 MW of power in the 
future.  DPM Chalabi requested that military exercises, 
similar to those held recently near Kirkuk and Salman Pak, be 
held near these facilities, as the presence of troops, even 
temporarily, enhances the overall security of the area. 
 
7.  (C) Minister of Electricity Dr. Muhsin Shalash reported 
that 13 towers on the Bayji-Baghdad 400 KV line remained 
down and there was no contract in place for repair.  MNF-I 
reported that they were aware of a number of companies 
ready to work in this area and urged MoE Shalash to put 
contracts in place for these repairs while security in the 
area was sufficient. 
 
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Perforating Charges Only Part of the Answer in Qurnah 
--------------------------------------------- ---------- 
 
8.  (C) MNF-I reported that the permits for the importation 
of perforating charges have been approved since May 2005; 
the charges themselves are currently available in Kuwait. 
The next step is for the Southern Oil Company (SOCO) to 
actually place the order.  Some 12,000 charges will be 
necessary to work on 30 wells in north and south Rumaillah 
and another 30 wells in Qurnah.  The work could start in 
February 2006 and take 30 weeks, at a rate of two wells per 
week (one each in Qurnah and Rumaillah).  MNF-I stressed 
that, unlike the Rumaillah fields that have a sufficient 
number of gas oil separation plants (GOSPs) to process the 
additional supplies of crude, Qurnah would require 
construction of a new GOSP to process the new crude oil the 
perforating charges would make available.  Construction would 
cost approximately $150 million and take a year. 
 
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SIB Update 
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9.  (C) MNF-I reported that the first five of a planned 18 
Strategic Infrastructure Battalions (SIBs) have completed 
Tier I of their training in basic infantry skills applicable 
to the protection of linear infrastructure. 
MNF-I assessed these troops' accomplishments as "fair." 
Upcoming Tier II training consists of more advanced 
training for commanders; Tier III is a week of on-the-job 
training for and observation of the units; and Tier IV 
consists of follow-up visits to deployed battalions by 
MNSTC-I trainers.  SIBs 6-11 (posted on the Bayji-Baghdad 
corridor) and 17 (posted near Salman Pak) will be the next 
units to undergo Tier I training, revised to reflect 
lessons learned from the first tranche of SIBs trained.  In 
response to Chalabi's question as to whether all units had 
been "vetted" to ensure they had not been infiltrated by 
insurgents, MNC-I Deputy Commanding General (CG) Parker 
responded that security remained an issue, adding that the 
composition of these units was subject to change. 
KHALILZAD