NATIONAL ENERGY COUNCIL ACTS TO ENSURE ADEQUATE

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 004851

SIPDIS

E.O. 12958: DECL: 12/02/2015
TAGS: ECON ENRG EPET MOPS MARR PGOV IZ
SUBJECT: NATIONAL ENERGY COUNCIL ACTS TO ENSURE ADEQUATE
FUEL SUPPLIES TO BAGHDAD DURING ELECTIONS

Classified By: A/Economic Minister Counselor Harry O'Hara for reasons 1
.4 (b) and (d).


1. (C) Summary: The National Energy Council decided December
1 to stockpile almost 4 million gallons of gasoline and 2.6
million gallons of diesel in Baghdad to ensure adequate
supplies in the capitol during the elections. Exports from
the north will be kept minimal in the coming weeks so that
Bayji refinery is assured a steady supply of crude. Deputy
Prime Minister Chalabi ordered workers and security forces to
co-locate in "work camps" in the north to provide better
security for repair crews. Perforation charges from well
workovers alone will not increase production from the Qurnah
oil field. End Summary.


2. (SBU) Deputy Prime Minister (DPM) Ahmad Chalabi chaired
the National Energy Council (NEC) December 1. Also present
were Minister of Electricity (MoE) Dr. Muhsin Shalash, MoE
Security Advisor General Sa'ad, representatives from the
Ministries of Oil, Transportation and Defense, MNC-I Deputy
Commander Major General Parker, MNF-I advisors, and Econ and
Pol/Mil officers.

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Fuel Supply
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3. (C) DPM Chalabi agreed with MNF-I to keep crude oil
exports from the north minimal in coming weeks in order to
ensure that sufficient crude supplies are on hand for
domestic refining in the run-up to the election. Currently,
no northern crude oil is being exported, as storage
facilities at IT1-A are being refilled. It was agreed that
security at Bayji be increased, as the refinery's continued
operation is crucial in the coming weeks. Chalabi directed
that the NEC issue an order to the Ministry of Oil (MoO) to
stockpile almost 4 million gallons of gasoline and 2.6
gallons of diesel for use in Baghdad during the elections.
General Parker noted that the GOI must ensure an adequate
distribution plan for these supplies.

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Chalabi Approves Repair Crew Work Camps
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4. (C) MNF-I reported that, although Coalition and Iraqi
forces are camped at al-Riyadh, pipeline repair crews had
not yet returned to work. Chalabi directed NEC staff to
draft a decision of the NEC ordering that repair crews be
brought in from other areas and co-located in camps with
military forces. Chalabi said that these workers would be
less susceptible to threats to themselves and their families.


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Surveillance Increase Pays Off
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5. (C) MNF-I reported increased surveillance by unmanned
aerial vehicles (UAVs) and helicopters led to the successful
disruption of a team of saboteurs attempting to loot power
lines in the Baghdad-Bayji corridor, near Samarra. Increased
MNF-I activity had also identified and engaged other parties
of looters and discovered a number of IED factories. MNF-I
said that the US forces are focused on the al-Fatah area and
are working closely with Parsons
on security.

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Electricity
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6. (C) DPM Chalabi reported that the Council of Ministers
had approved December 1 the additional money necessary for
expanding the Yusifiyah power plant to add an additional 500
MW of power to the national grid. Another project at
Mussayib is expected to add some 600 MW of power in the
future. DPM Chalabi requested that military exercises,
similar to those held recently near Kirkuk and Salman Pak, be
held near these facilities, as the presence of troops, even
temporarily, enhances the overall security of the area.


7. (C) Minister of Electricity Dr. Muhsin Shalash reported
that 13 towers on the Bayji-Baghdad 400 KV line remained
down and there was no contract in place for repair. MNF-I
reported that they were aware of a number of companies
ready to work in this area and urged MoE Shalash to put
contracts in place for these repairs while security in the
area was sufficient.

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Perforating Charges Only Part of the Answer in Qurnah
-------------- --------------


8. (C) MNF-I reported that the permits for the importation
of perforating charges have been approved since May 2005;
the charges themselves are currently available in Kuwait.
The next step is for the Southern Oil Company (SOCO) to
actually place the order. Some 12,000 charges will be
necessary to work on 30 wells in north and south Rumaillah
and another 30 wells in Qurnah. The work could start in
February 2006 and take 30 weeks, at a rate of two wells per
week (one each in Qurnah and Rumaillah). MNF-I stressed
that, unlike the Rumaillah fields that have a sufficient
number of gas oil separation plants (GOSPs) to process the
additional supplies of crude, Qurnah would require
construction of a new GOSP to process the new crude oil the
perforating charges would make available. Construction would
cost approximately $150 million and take a year.

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SIB Update
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9. (C) MNF-I reported that the first five of a planned 18
Strategic Infrastructure Battalions (SIBs) have completed
Tier I of their training in basic infantry skills applicable
to the protection of linear infrastructure.
MNF-I assessed these troops' accomplishments as "fair."
Upcoming Tier II training consists of more advanced
training for commanders; Tier III is a week of on-the-job
training for and observation of the units; and Tier IV
consists of follow-up visits to deployed battalions by
MNSTC-I trainers. SIBs 6-11 (posted on the Bayji-Baghdad
corridor) and 17 (posted near Salman Pak) will be the next
units to undergo Tier I training, revised to reflect
lessons learned from the first tranche of SIBs trained. In
response to Chalabi's question as to whether all units had
been "vetted" to ensure they had not been infiltrated by
insurgents, MNC-I Deputy Commanding General (CG) Parker
responded that security remained an issue, adding that the
composition of these units was subject to change.
KHALILZAD