Fwd: POSSIBLE OPPORTUNITY

From:stephenjhadley@mac.com To: Jacob_J_Sullivan@ovp.eop.gov, john.podesta@gmail.com, John_D_Podesta@who.eop.gov Date: 2014-06-15 19:47 Subject: Fwd: POSSIBLE OPPORTUNITY

Per my conversation with each of you. Steve Stephen J. Hadley (202) 220-5061 Begin forwarded message: > From: james jeffrey <jamesfranklinjeffrey@gmail.com> > Date: June 15, 2014 at 12:06:09 AM EDT > To: Stephen Hadley <hadley@ricehadleygates.com>, Stephen Hadley <stephenjhadley@mac.com> > Subject: POSSIBLE OPPORTUNITY > > Steve, with the occupation of Ninewah by ISIS, and of greater Kirkuk by the KRG, we have an interesting possibility. It is my understanding that the pipelines that brought Kurdish crude to Kirkuk to be shipped via the Kirkuk Ceyhan pipeline can be reversed. If this is so this provides an opportunity for the Northern Oil Company--part of the central government, to ship out up to 200,000 b/d (I think the pipeline would take that much, but would have to check. But clearly close to that as the Kurds on good days were sending up to 175,000 b/d to Kirkuk. See attachment for layout (slightly obsolete) of pipelines. Pipeline running between Kirkuk (hidden by white legend ballon) and the Kurdish net is in black running northwest-southeast.) > > Idea would be: > > --Kirkuk to keep producing (shutting down operating wells is a laborious, costly, and very detrimental process. With Beiji refinery, fed by up to 100,000 b/d from Kirkuk and the Ceyhan line in enemy hands, that's a lot of capacity shut in. ) with production either sent to Kurdistan for refining or shipped out via the 300,000 b/d line that, very fortunately, KRG now has to Ceyhan. > > --KRG would 'temporarily' market all oil exported via that line--its own quantities, say 100,000 b/d, plus Kirkuk. (This would be a compromise to the KRG). > > --But proceeds would be put in the Fed Reserve "DFI" account with some special arrangement for the Kurdish 17% of total revenues country-wide (the idea Brett was working on--this would be a compromise to the Central Government). > > --This would all be a 'temporary,' 'emergency' action given the situation. > > --On top of everything else, while quantities are limited this could calm world markets. > > If this makes sense, I'd suggest someone like Jim Jones shop it to the KRG. For various reasons while Brett is an alternative I don't know where he stands with the Kurds. (I do know that Sistani supposedly is very angry at the Kurds, probably for seizing Kirkuk and other territories (which otherwise would have been seized by ISIS)). > > I will be an an Northern Iraq energy conference in London next week, and can shop the idea in principle to Ashti and perhaps Turkey's Yildiz. But this will take someone like Jones or you to pitch to the Kurds. > > Let me know how this sounds. Regards, Jim