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.

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Southern Oil Flowing
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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.

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Refining Picture is Mixed
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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