Identifier
Created
Classification
Origin
03ANKARA4912
2003-08-05 13:55:00
CONFIDENTIAL
Embassy Ankara
Cable title:  

BOTAS ON IRAQI OIL AND GAZPROM

Tags:  ENRG ETTC PREL TU IZ 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L ANKARA 004912 

SIPDIS


STATE FOR PRM, E, EB, E/CBED, EUR/SE, NEA/NGA
NSC FOR QUANRUD AND BRYZA


E.O. 12958: DECL: 08/05/2013
TAGS: ENRG ETTC PREL TU IZ
SUBJECT: BOTAS ON IRAQI OIL AND GAZPROM

Classified by EconCouns Scot Marciel, Reason 1.5 (b,d)


C O N F I D E N T I A L ANKARA 004912

SIPDIS


STATE FOR PRM, E, EB, E/CBED, EUR/SE, NEA/NGA
NSC FOR QUANRUD AND BRYZA


E.O. 12958: DECL: 08/05/2013
TAGS: ENRG ETTC PREL TU IZ
SUBJECT: BOTAS ON IRAQI OIL AND GAZPROM

Classified by EconCouns Scot Marciel, Reason 1.5 (b,d)



1. (U) Baghdad minimize considered.



2. (C) Summary. BOTAS General Manager Mehmet Bilgic told us
August 1 that a 10-person BOTAS technical team was in Iraq
with Iraqi officials to inspect the Kirkuk-Yumurtalik
pipeline and help get the oil flowing again as soon as
possible. Bilgic asked about the veracity of a recent news
report that U.S. authorities in Iraq planned to export all
oil through southern Iraq and close the Kirkuk-Yumurtalik
pipeline. Bilgic said BOTAS and Gazprom had agreed to resume
the Blue Stream gas flow, but were still "discussing"
outstanding issues in all of their bilateral gas contracts.
End summary.


BOTAS Team in Iraq
--------------



3. (SBU) Bilgic told EconCouns and econoff August 1 that
BOTAS had sent a 10-person technical team to Iraq on July 30
to inspect the Kirkuk-Yumurtalik pipeline and help get
operations started as soon as possible. Bilgic said the team
-- including 3 pump station engineers, 3 pipeline
communication system experts, 2 firefighters, and 2
assistants -- was working with Iraqi Oil Ministry officials.
Bilgic said the team's preliminary report indicated that the
pipeline was in better condition than expected, but they
still had not seen the entire pipeline. He noted that one of
the problems was lack of communication along the pipeline.
Bilgic said BOTAS wanted to get the oil flowing from Kirkuk
as soon as possible, and had offered to help the Iraqis
achieve this. He said he hoped pipeline operations could
resume in August, but would not know until his team returned
from Iraq whether that was feasible.



4. (SBU) Bilgic said he had seen a recent news article
suggesting that U.S. authorities in Iraq planned on exporting
all oil through southern Iraq, and no longer planned on using
the Kirkuk-Yumurtalik pipeline. EconCouns responded that
there was no such plan, and that authorities in Baghdad were
working hard to export oil from both the north and south.


Relations with DEPA, Gazprom
--------------



5. (C) Bilgic said he had had good meetings with DEPA in
Greece in mid-July. He said he reiterated BOTAS' interest in
DEPA privatization, and continued the dialogue on the
Greece-Turkey interconnect.



6. (C) Referring to BOTAS' recent dispute with Gazprom over
the price formula in the Blue Stream contract, Bilgic said
the two companies had decided to resume the Blue Stream gas
flow as of August 1. He said the companies still had
"disagreements" regarding all of their gas contracts (Blue
Stream, Russia West 1 and Russia West 2),including issues
regarding price, "take-or-pay" provisions, and duration of
the contracts. Indicating that BOTAS paid a higher price for
gas than Gazprom's other clients, Bilgic said it was his hope
that BOTAS and Gazprom could reach an accommodation that
would allow all parties to continue implementing the
contracts.
DEUTSCH