SOMO ARREARS TO TURKEY REACH $668 MILLION

C O N F I D E N T I A L ANKARA 006095

SIPDIS

E.O. 12958: DECL: 10/06/2015
TAGS: ETRD PREL TU IZ
SUBJECT: SOMO ARREARS TO TURKEY REACH $668 MILLION

REF: A. ANKARA 3842


B. BAGHDAD 2845

C. KIMMEL-BURGER EMAIL 10/6/05

Classified By: Acting DCM Thomas H. Goldberger for reasons 1.4 (b) and
(d).


1. (C) MFA Coordinator for Iraq and Afghanistan
Reconstruction Amb. Koray Targay called in A/DCM Oct. 6 to
report that arrears owed to Turkish companies by the Iraqi
State Oil Marketing Organization (SOMO) for humanitarian fuel
for the Iraqi people had reached U.S.$ 688 million. In
total, SOMO owes Turkish companies $820 million, but only
$688 million are in arrears (45 days past product delivery).
Targay requested that we bring this issue to the ITG's
attention, as we have done in the past (refs a and b). He
noted that while the GOT will continue to urge the Turkish
petroleum companies to continue to ship product, some of
these companies are medium-sized and will experience
cash-flow and product quality problems soon. "We would
appreciate it if Iraq could reduce the amount" of the
arrears, Koray said.


2. (C) We understand (per ref c) that the ITG is aware of the
situation. While Koray did not take a "hair on fire"
approach to this issue, we are not sanguine that Turkish
firms can keep the oil flowing indefinitely unless these
arrears are addressed, at least in part.
MCELDOWNEY