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Cablegate: Turks Positive On Iraq Neighbors Energy Group

VZCZCXRO5247
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHAK #1735/01 1871450
ZNR UUUUU ZZH
R 061450Z JUL 07
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC 2873
INFO RUCNRAQ/IRAQ COLLECTIVE
RUCPDOC/USDOC WASHDC
RHEBAAA/DEPARTMENT OF ENERGY WASHDC
RHEFDIA/DIA WASHDC
RUEHAK/USDAO ANKARA TU
RUEAIIA/CIA WASHDC
RUEKJCS/SECDEF WASHDC//USDP:PDUSDP/ISA:EUR/ISA:NESA//
RHEHAAA/NSC WASHDC
RUEUITH/ODC ANKARA TU
RUEKJCS/JOINT STAFF WASHDC//J-3/J-5//
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RHMFIUU/HQ USEUCOM VAIHINGEN GE
RHMFISS/HQ USCENTCOM MACDILL AFB FL
RHMFIUU/425ABS IZMIR TU//CC//
RHMFIUU/39ABG INCIRLIK AB TU
RUEPGAB/MNF-I C2X BAGHDAD IZ

UNCLAS SECTION 01 OF 02 ANKARA 001735

SIPDIS

USDOE FOR CHARLES WASHINGTON
USDOC FOR 4212/ITA/MAC/CPD/CRUSNAK

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ENRG EPET PREL TU IZ
SUBJECT: Turks Positive on Iraq Neighbors Energy Group

SENSITIVE BUT UNCLASSIFIED

1. (SBU) Summary. In separate July 5 meetings, MFA Iraq Special
Envoy Oguz Celikkol and Iraq desk official Yagmur Guldere gave
positive readouts of the June 28-29 Energy Working Group (EWG)
experts meeting of the neighboring countries of Iraq. The Iraqi
participants gave detailed presentations of urgent needs for
electric power and refined petroleum products, and all participating
neighbors expressed their political support to contribute
reconstruction and development efforts. The EWG produced a "final
statement" to be presented to Ministers at their next meeting, and
provided a "good solid foundation" for future cooperation. Although
invitations and agendas are the responsibility of Iraq, Turkey hopes
to host future EWG meetings and to include private-sector
participants in some way. Turkey hopes that the security and
refugees working groups will meet soon (and is hearing reports to
that effect from Damascus and Amman) before another Ministerial
level meeting that could take place in September. Celikkol asked if
the USG would be represented in the other working group meetings: he
thought U.S. participation would be especially relevant for the
security group. End Summary.

2. (SBU) Thirty seven participants attended the June 28-29
meetings in Istanbul. In addition to Turkey and Iraq, political and
technical level delegations attended from Iran, Kuwait and Egypt,
while Jordan, Kuwait, Iran, the Arab League, the Organization of the
Islamic Conference, and the UN sent observers. A Syrian delegation
did not attend. Guldere said the Turks were mystified as to why
Jordan (which sent its ambassador from Ankara) had been invited as
an observer rather than a full participant, but that this was the
Iraqis call.

3. (SBU) The Iraqis made two presentations: electricity and
refined products. They described their $2 billion "electricity
master plan," which includes new power generation and reconstruction
of transmission capability through 2010 plus electricity imports
from Turkey, and participation in the Arab Electrical Network.
Guldere said they had separate discussions with the Iraqis about the
plan to increase Turkish electricity exports from the current 270 MW
to 1200 MW. The Iraqis provided reassuring information about the
construction of transmission capacity within Iraq. He said that the
Turkish company exporting electricity, Kartet, is also discussing
with the Iraqis the provision of two floating power stations at
Basra port.

4. (SBU) The presentation on refined products described an urgent
need for kerosene, LPG, and transportation fuels. Guldere said
these long presentations described a "difficult" situation on the
ground due to security problems and the "lacking of everything."
Neighboring countries responded with supportive suggestions. Iran
discussed the construction of a new pipeline from its Abadan
refinery to Basrah and its readiness to aid construction of new
refineries inside Iraq. GOT appreciated Iraq's efforts to curtail
smuggling and describe new Turkish import regulations that would
facilitate the import of heavy fuel oil (HFO) from Iraq but
consolidating the imports under a single Turkish company, the
state-owned TPIC. This could lead to a "ten-fold increase" in HFO
imports. The Iraqis also expressed an interest in receiving fuel
products from Turkey by railroad (which passes through Syria).
Kuwaiti and Egyptian participants discussed offers of technical
assistance, training, and the supply of spare parts.

5. (SBU) Celikkol and Guldere called the meeting a success that
built a "good solid foundation" for future efforts. They said Iraq
requested that Turkey continue to serve as the host for the EWG and
that Turkey had agreed to do so (although Kuwait and Iran also
offered to host future meetings). Guldere thought the next meeting
should take place after the next meeting of the Foreign Ministers of
the neighboring countries of Iraq expected sometime this fall. This
will allow ministerial-level coordination of all three working
groups and include inputs from up-coming meetings of the Displaced
Persons Working Group and Security Working Group later this summer.

ANKARA 00001735 002 OF 002


During the next meeting of the EWG, efforts will be made to include
private-sector participants.

6. (U) Following is the text of the FINAL STATEMENT from Iraq's
Neighbouring Countries Energy Working Group Experts Meeting held in
Istanbul, 28-29 June 2007:

As agreed at the enlarged neighbouring countries of Iraq Foreign
Ministers Meeting held at Sharm el Sheikh, Egypt on 3-4 June 2007,
an Energy Working Group (EWG) is established together with a
Security Working Group and a Displaced Persons Working Group.

Upon the suggestion of the Iraqi Government, Turkey hosted the
initial EWG meeting in Istanbul on 28-29 June 2007.

Responding positively to the Iraqi Government's invitation, Egypt,
Iran, Jordan, Kuwait, Turkey and Arab League, Organization of
Islamic Conference and United Nations participated in the EWG
meeting.

The initial EWG meeting allowed Iraq to make presentations during
the sessions effectively describing the needs and opportunities in
the oil, gas and electricity power sectors. In its two
presentations, the Iraqi Delegation exposed the actual situation on
the ground in a detailed manner.

The participants recognized the urgency of the need of assistance to
Iraq in these fields and the humanitarian aspect of the problem.

The participants also reiterated their political will to contribute
to the reconstruction and development needs of Iraq in these three
sectors.

The participants decided to exert every effort for expediting the
implementation of existing agreements between Iraq and the other
participants concerning cooperation on electricity.

The participants agreed to consider the proposals and
recommendations presented by the Iraqi delegation on improving the
existing cooperation in the fields of oil and electricity. The
participants presented their views and suggestions for further
developing their cooperation with Iraq hi these areas.

The participants also discussed the technical means with which to
put into effect their contributions. The participating states agreed
to inform their respective private sectors in order to allow an
amelioration of their contributions.

In accordance with the spirit and the political guidance of Sharm el
Sheikh Ministerial Meeting, participants agreed that the EWG
meetings should constitute a continuous process and that further
meetings of the Group will be useful and necessary.

Participants thanked Turkey for hosting the first meeting of the
Working Groups established at Sharm el Sheikh and took note of the
offers presented by ..... to host the next Experts Level EWG
meeting.
Wilson

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