follow us like us subscribe contact us
Loading, please wait

Iraq - Kuwait - Turkey: Relations Hit a New Low

By Editorial Dept | Fri, 18 January 2013 18:03 | 0

Incident: In an indication of the dangerous new low reached in Iraqi-Turkish relations, Iraq’s central government has rescinded an exploration deal with a Turkey’s state-run TPAO and approved a new deal for the same concession with Kuwait Energy. The concession is a 900-square-kilometer exploration block (Block 9) in south Iraq, near the Iranian border. Kuwait Energy is a Kuwaiti-led coalition with Emirati companies. Kuwait Energy will gain a 70% stake in the project, while the UAE’s Dragon Oil will hold the remainder.

Right before the New Year, Asaib al-Haq—and Iraqi militia group that splintered from anti-US Moqtada al-Sadr's Mahdi Army—threatened Turkish interests in Iraq as relations worsen.

Bottom Line: Baghdad is hitting back at Ankara for the latter’s interference in Iraq and its courting of the Iraqi Kurds—who are creeping towards independence on the back of oil and gas revenues. But it’s hitting back in a small way for now. The bigger deals remain, despite souring relations. 

Analysis: Originally, the concession holder was a consortium led by TPAO and including Kuwait Energy and Dragon Oil. The consortium won the contract in May 2012. TPAO has been kicked out unceremoniously. Baghdad had warned Turkey in November that it would be expelled from the concession because of “non-technical issues”.

What are those issues? To wit: Turkey is heavily courting Iraqi Kurdistan’s…

To read the rest of this article Start a FREE subscription to our premium publication

Oil & Energy Insider - 30 day Free trial

30 day Free trial
A FREE Subscription Includes:
  • Investment advice normally reserved for hedge fund clients.
  • Market & sector research not available anywhere else.
  • Strategic advice from corporate & military intelligence analysts.
  • 9 Weekly Investment / intelligence reports.
  • Full access to all previous reports.
  • 30 days free trial.
Get FREE access to our research for 30 days

An essential resource for all investors in the energy sector whether you're a trader, fund manager or individual investor - this inside look at the energy markets is unlike any other report or service currently available.

About the author

More recent articles by Editorial Dept

Fri 19 December 2014
The Latest Hot Spot For Offshore Oil
Fri 19 December 2014
Global Energy Advisory - 19th December 2014
Fri 12 December 2014
Will Low Oil Prices Shatter LNG Hopes?
Fri 12 December 2014
Global Energy Advisory - 12th December 2014
Fri 05 December 2014
The U.S. Gas Pipeline Network Undergoing Major Overhaul