Identifier
Created
Classification
Origin
03KUWAIT3589
2003-08-06 03:50:00
CONFIDENTIAL
Embassy Kuwait
Cable title:
(C) GOK CLAIMS TURKS BUYING IRAQI OIL,
how-toThis 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 KUWAIT 003589
SIPDIS
STATE FOR NEA/ARP, NEA/NGA
STATE FOR EUR/SE
E.O. 12958: DECL: 08/02/2013
TAGS: PREL EPET ETRD KU IZ TU
SUBJECT: (C) GOK CLAIMS TURKS BUYING IRAQI OIL,
UNDERCUTTING KUWAITI MOGAS SALES
Classified By: ADCM John G. Moran for reason 1.6 x 6.
C O N F I D E N T I A L KUWAIT 003589
SIPDIS
STATE FOR NEA/ARP, NEA/NGA
STATE FOR EUR/SE
E.O. 12958: DECL: 08/02/2013
TAGS: PREL EPET ETRD KU IZ TU
SUBJECT: (C) GOK CLAIMS TURKS BUYING IRAQI OIL,
UNDERCUTTING KUWAITI MOGAS SALES
Classified By: ADCM John G. Moran for reason 1.6 x 6.
1. (U) This is an action request. Please see para. 4.
2. (C) During their July 27 meeting, MFA U/S Khaled
Al-Jarallah told the Ambassador that Turkish tanker trucks
carrying mogas into Iraq for the CPA under a Kellogg, Brown
and Root (KBR) contract were returning to Turkey laden with
Iraqi oil supplied to Turkey at below-market price. Jarallah
claimed the profit from the sale of this cut-rate oil was
allowing the Turks to sell mogas to KBR at a discounted rate,
undercutting competing Kuwaiti consortium Altanmia. Jarallah
asserted this was partially to blame for the fact that KBR is
now buying a larger share of mogas from Turkey than Kuwait.
When asked, Jarallah could not say who was selling the oil to
the Turks.
3. (C) In a conversation with KBR COO for Government
Operations Thomas Crum, on July 31, Poloff was informed that
KBR's purchase of mogas from various sources is directed "in
writing" by the U.S. Army Corps of Engineers. Mr. Crum said
the Corps' decision to buy more fuel from Turkey was most
likely dictated by the legal requirement for the Corps to
provide security for the transport of the fuel, which it has
found difficult in Southern Iraq.
4. (C) Action Request/Commment: Ongoing security concerns in
Southern Iraq are disrupting the transport of both mogas and
LPG from Kuwait into Iraq. If left unaddressed, the lack of
security will continue to severely restrict the flow of much
needed LPG and mogas to Iraq from Kuwait. Given the GOK's
strong operational support for the liberation of Iraq and its
continuing supply of fuel for U.S. forces in Iraq at no cost
to the USG, reduction of KBR's purchases of LPG and mogas
from Kuwait would be an irritant in bilateral relations that
could have significant negative repercussions for U.S.
operations in Kuwait and Iraq. We recommend that steps be
taken to prevent this by providing sufficient security for
sustained shipments of mogas and LPG from Kuwait. Please
advise.
5. (U) Baghdad minimize considered.
JONES
SIPDIS
STATE FOR NEA/ARP, NEA/NGA
STATE FOR EUR/SE
E.O. 12958: DECL: 08/02/2013
TAGS: PREL EPET ETRD KU IZ TU
SUBJECT: (C) GOK CLAIMS TURKS BUYING IRAQI OIL,
UNDERCUTTING KUWAITI MOGAS SALES
Classified By: ADCM John G. Moran for reason 1.6 x 6.
1. (U) This is an action request. Please see para. 4.
2. (C) During their July 27 meeting, MFA U/S Khaled
Al-Jarallah told the Ambassador that Turkish tanker trucks
carrying mogas into Iraq for the CPA under a Kellogg, Brown
and Root (KBR) contract were returning to Turkey laden with
Iraqi oil supplied to Turkey at below-market price. Jarallah
claimed the profit from the sale of this cut-rate oil was
allowing the Turks to sell mogas to KBR at a discounted rate,
undercutting competing Kuwaiti consortium Altanmia. Jarallah
asserted this was partially to blame for the fact that KBR is
now buying a larger share of mogas from Turkey than Kuwait.
When asked, Jarallah could not say who was selling the oil to
the Turks.
3. (C) In a conversation with KBR COO for Government
Operations Thomas Crum, on July 31, Poloff was informed that
KBR's purchase of mogas from various sources is directed "in
writing" by the U.S. Army Corps of Engineers. Mr. Crum said
the Corps' decision to buy more fuel from Turkey was most
likely dictated by the legal requirement for the Corps to
provide security for the transport of the fuel, which it has
found difficult in Southern Iraq.
4. (C) Action Request/Commment: Ongoing security concerns in
Southern Iraq are disrupting the transport of both mogas and
LPG from Kuwait into Iraq. If left unaddressed, the lack of
security will continue to severely restrict the flow of much
needed LPG and mogas to Iraq from Kuwait. Given the GOK's
strong operational support for the liberation of Iraq and its
continuing supply of fuel for U.S. forces in Iraq at no cost
to the USG, reduction of KBR's purchases of LPG and mogas
from Kuwait would be an irritant in bilateral relations that
could have significant negative repercussions for U.S.
operations in Kuwait and Iraq. We recommend that steps be
taken to prevent this by providing sufficient security for
sustained shipments of mogas and LPG from Kuwait. Please
advise.
5. (U) Baghdad minimize considered.
JONES