Summary
Content
Overview
Liquid Petroleum Gas (LPG) remains the most pressing issue. Approximately 50% of the daily requirement is being produced to cover the internal market. The shortfalls are undoubtedly being noticed in each governorate. Production has been stepped up in Basra to cover the Basra area and export northwards along the newly opened gas pipeline through Narisiyah. North of Nasiriyah should be opened during the week starting 19 May.
The strategic North / South crude line is expected to be completed and pressure tested around the 21 /22 May. Work is taking place on the off shore oil terminal line to facilitate exports when sanctions are lifted. It is critical that the crude is taken out of the system if the system is not to close down. Time is running out and in the Northern oilfields the unusual practise of re-injecting the oil back into the ground is taking place to relieve the pressure and allow an increase in LPG production. This has facilitated the opening of Kirkuk for LPG supply that is being sent to Baghdad by the direct order of the Oil Minister. It is expected that the Kirkuk refinery will steadily increase its production to 1,045 Tons per day by the end of the month
Security and looting are major hurdles that are inhibiting progress and therefore need to be addressed. The first 220 Armed Oil Police have been deployed to guard key installations. The UK Forces have withdrawn as the Oil Police take up position. The second batch training course has started following recruit screening. The aim is recruit a 9,000 strong force.
The Oil for Food programme orphan contracts are being addressed by a joint UNJLC and UNOPS team working with the OIP team in New York. Currently we have identified with UNJLC New York around 140 orphan projects. One project identified 200,000 x 12 kg gas bottles in Dubai. LPG, at present, is in short supply in Iraq therefore as a trial we are trying to move the LPG containers to Kuwait where they will be filled and moved into Iraq by road. There are a number of issues to be resolved but also a willingness to overcome any obstacle as the participating parties are aware that the current LPG situation is serious and this single action will make a difference. We have received full support from the new Oil Ministry in Baghdad. A draft procedure is being prepared by JLC in Kuwait for submission to New York JLC/ UNOPS as a discussion document for the OIP team. We believe that due to the urgency of the requirement for LPG bottles that it maybe necessary in enlist endorsement by UNOCHI
In addition to the above we have been forwarded a number of documents from the Minister of Oil requesting that we trace key equipment needed to support the Oil Industry that have been ordered under the Oil for Food programme. These range from OIP contracts to major works that apparently have been contracted by UNDP. We have forwarded copies to the UNJLC representative in New York to seek clarification.
On the 3 May The Department of Defence Office of Reconstruction and Humanitarian Assistance CFLCC -ORHA issued the appointment of the Oil Ministry leadership -Interim Management Team. This document had immediate effect and sign by Gary L Vogler Oil Advisor.
ABOUT UNJLC
UNJLC is an inter-agency facility reporting to the Humanitarian Coordinator for Iraq and generally to the Inter Agency Standing Committee. Its mandate is to coordinate and optimise logistics capabilities of humanitarian organisations in large scale emergencies. UNJLC operates under the custodianship of WFP that is responsible for the administrative and financial management of the unit. UNJLC is funded from voluntary contributions that are channeled through WFP. The UNJLC project document for Iraq can be viewed at the UNJLC website (www.unjlc.org).