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