MGIZ02: STATUS OF OIL PRODUCTION/REFINING CAPACITY

C O N F I D E N T I A L BAGHDAD 004241 SIPDIS E.O. 12958: DECL: 10/15/2015 TAGS: ECON ENRG EPET MOPS MARR PGOV PINS IZ SUBJECT: MGIZ02: STATUS OF OIL PRODUCTION/REFINING CAPACITY IN THE AFTERMATH OF BLACKOUT REF: BAGHDAD 4230 Classified By: Economic Minister Counselor Tom Delare for reasons 1.4 ( b) and (d). ¶1. (C) As of 1230 hours October 15, officials at the Ministry of Oil reported that the October 14 blackout (reftel) has had limited effect on Iraq's oil production. The October 12 explosion at the al-Fatah Crossing had already interrupted refining at Bayji, although refining has since resumed. Daura refinery is working at 41% capacity; Basrah refinery is still being assessed. End Summary. -------------- Southern Oil Flowing -------------- ¶2. (C) Officials at the South Oil Company (SOCO) reported October 15 that the October 14 electrical blackout had briefly interupted production and exports overnight October 14-15. Southern production resumed the morning of October 15 and crude oil is now being pumped northward to feed the Baghdad-Daura refinery. Southern oil is also available for export. -------------- Refining Picture is Mixed -------------- ¶3. (C) The Bayji refinery in northern Iraq did not shutdown during the blackout because plant managers were able to maintain its electrical supply from other sources. The October 12 explosion at the al-Fatah bridge, however, had already destroyed the pipelines and interrupted natural gas and crude supplies. Crude oil has subsequently been re-routed through pre-existing alternate pipelines under the river, and limited production has resumed. The fire at al-Fatah is still burning, but USG contractor Parsons and MoO officials are already studying how to re-route the natural gas pipelines to resume supply of the mobile units at the Bayji power plant. ¶4. (C) The Daura refinery near Baghdad maintains its own generators capable of supplying 4 megawatts of power. Production at the Daura Refinery was thus not interrupted as a result of the blackout, despite the plant suffering a temporary loss of electricity between 2130 hours and 2330 hours October 14. It is currently processing some 46,000 Bbls/day or 41% of its 110,000 Bbls/day capacity. ¶5. (C) The Basrah refinery suffered an electricity interruption. MoO officials in Baghdad have not yet reported on the status of the plant. Khalilzad