IRAQI ENERGY COUNCIL IN DISARRAY

S E C R E T SECTION 01 OF 02 BAGHDAD 004449

SIPDIS

NOFORN

E.O. 12958: DECL: 10/31/2015
TAGS: ENRG EPET EFIN ECON MASS MOPS PGOV PREL IZ TU
SUBJECT: IRAQI ENERGY COUNCIL IN DISARRAY

REF: BAGHDAD 4356 AND PREVIOUS

Classified By: Classified by Economic Minister Counselor Tom Delare for
reasons 1.4 (b) and (d)


1. (C) SUMMARY: The National Energy Council (NEC) assessed
the energy infrastructure siege of Baghdad October 27.
Attacks against infrastructure in the North have cut off the
oil flow to Baghdad and Turkey, reducing fuel supplies in
parts of Iraq to critically low levels. Deputy Prime
Minister Chalabi and several members of the council spoke
against what he called ineffective MNF-I security of the
pipelines. After a sharp exchange with Chalabi over
insufficient intelligence and corruption, the Minister of
Industry and Minerals, Usama Al Najafi, resigned from the NEC
in protest. END SUMMARY.


2. (SBU) Deputy Prime Minister (DPM) Ahmed Chalabi chaired
the National Energy Council meeting October 27. Minister of
Oil (MOO) Bahr Al-Ulum, Minister of Water Resources (MOWR)
Abdul Latif Rasheed, Minister of Electricity (MOE) Muhsin
Shallash, Minister of Industry and Minerals (MIM) Usama al
Najafi, Chief of Staff of the Iraqi Armed Forces LTG Abadi,
Infrastructure Coordination Cell (ICC) Chief, BG Kamal,
Ministry of Interior consultant Dr. Abraham, Ministry of Oil
Intelligence Chief, Colonel Jaburi, MNF-I STRATOPS, and
ECONOFF attended.

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KEY INFRASTRUCTURE ATTACK REVIEWED
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3. (C) DPM Chalabi started the meeting by stating, "We are in
bad shape. Oil from Kirkuk is still cut off, and no
pipelines are able to provide fuel to Baghdad from Bayji."
Chalabi said that although SIBs had reported that mortars had
cut the pipelines from Kirkuk, it was actually done with IEDs
planted by the insurgents. &The insurgents were from the
2nd Battalion of the Strategic Infrastructure Brigade along
the pipeline,8 according to Chalabi, who suggested
"threatening the battalion commander." Chalabi reported that
two of the three electrical lines from Bayji/Kirkuk to
Baghdad were operational, and that no trains had been
attacked this week. MOWR Latif stated, "There has been no
improvement in security in the past five months;" MOO
al- Ulum added, "The insurgents are doing very well."

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INFRASTRUCTURE PROTECTION STATUS
--------------


4. (C) DPM Chalabi, in a very animated style, told the
council, "Gen Casey has placed a high priority on
infrastructure security compared to four months ago. This
committee has influenced MNF to increase the importance of
infrastructure security.8 DPM Chalabi went on to say, "Where
is the Iraqi Army? Why are they not doing their job of
defending the pipelines? We need to move these battalions
that are not doing their jobs-replace them." Chalabi
continued in what appeared to be an effort to appease other
council members, "General Casey commands the Iraqi Army, he
is the only one that can prevent these attacks. MG Parker
has presented a plan."


5. (C) DPM Chalabi suggested building a pipeline to Turkey
through Kurdish-controlled territory to enable the export of
Kirkuk oil. The Kurdish Government could guard that new
pipeline. MOO al- Ulum supported this proposal. MIM
al-Najafi was opposed, suggesting instead "We need to solve
our current problems, not build a new pipeline." (NOTE: This
is not the first time an alternate pipeline through Kurdish
territory has been discussed in the NEC. END NOTE)

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INTELLIGENCE SUPPORT DISPUTE; MIM RESIGNS FROM NEC
-------------- --------------


6. (SBU) MIM al-Najafi demanded to know why Chalabi had not
set up an intelligence unit to add security to the
infrastructure protection effort as promised. Al-Najafi
accused Chalabi of lying and threatened to resign. Chalabi
refuted al-Najafi,s accusation, saying that he had set up
the JCCI (Joint Coordination, Communication and Intelligence)
Center, which was an organized effort to find out who are
doing these attacks on the infrastructure. MIM al-Najafi
responded, "I am resigning (from the NEC). This is my last
meeting. There is corruption and no one is taking this
seriously." Chalabi responded that al-Najafi could go ahead
and resign from the council.

-------------- -
REPORT OF THE PROBLEM AT WEST QURNAH OIL FIELD
-------------- -


7. (S/NF) Chalabi said that 35,000 barrels per day of oil
were being lost from the West Qurnah oil field. He said the
GOI does not know what is occurring, adding that Iraqi
intelligence is attempting to determine who is controlling
the oilfields. &There are many suspects,8 Chalabi said,
adding that &there appears to be corruption, and the tribes
are stealing the oil." MOO al- Ulum responded, "We need to
pay them more, bribe them." (NOTE: MNF-I is investigating
the request from the DPM to intercede with military force in
West Qurna. It is unclear at this point what is occurring at
West Qurna Oil Fields. The FPS Commander of West Qurnah Oil
Field is COL Abdul an employee of the Southern Oil Company.
END NOTE) MNF-I representative informed the council that they
were attempting to ascertain the facts on what is going on at
West Qurna, as requested. MNF-I representative also informed
the council that they were very interested in who was
responsible for hijacking a million dollars of oil per day in
revenue from West Qurna and that they would look very closely
at who was responsible, their relationships with others, and
where the money was going. At this statement, DPM Chalabi
glanced toward the Minister of Oil and said, &There are
political groups taking advantage of the situation in West
Qurna. Terrorists are working inside the government
organizations.8

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CONCERN FOR MUSAYYIB POWER PLANT
--------------


8. (C) Chalabi informed the Council that he expected the
Musayyib power plant to be attacked. &The pipeline to
supply it with fuel has been repaired, so when the 500 MW of
generation comes on-line, I think it will be attacked."
Chalabi asked LTG Abadi to plan for the defense of Musayyib.

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COMMENT
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9. (C) COMMENT: The ministers, disappointment over the
ability of the Council to influence the commitment of
military forces and intelligence assets to provide protection
to the critical infrastructure was evident. The normal
politeness of the meeting was frayed, with hostilities
culminating in al-Najafi,s resignation from the NEC. END
COMMENT





Satterfield