• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 36 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days The United States produced more crude oil than any nation, at any time.
  • 6 days How Far Have We Really Gotten With Alternative Energy
  • 6 hours e-truck insanity
  • 6 days China deletes leaked stats showing plunging birth rate for 2023
  • 7 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 4 days Bad news for e-cars keeps coming
James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Premium Content

Kurdish Crude Exports Stop in Turkey

Kurdish Crude Exports Stop in Turkey

Crude oil has started flowing from Kurdistan to Turkey, but it’s stuck in the purgatory of Turkey’s Ceyhan export hub and will not be exported any further until Turkey reaches a deal with Iraq’s central authorities in Baghdad.

Turkish energy officials said oil started flowing directly from Kurdistan on Thursday, and that the oil would be kept in storage at the country's Ceyhan export hub and that he hoped that Ankara would reach a deal with Baghdad before the end of January.

Baghdad has threatened in the past to take measures against Turkey’s signing of energy deals unilaterally with Kurdistan, bypassing the Iraqi central authorities, who claim that such deals are illegal and represent Kurdish efforts to move towards independence.

Baghdad has also threatened foreign companies who have signed deals with the Kurdistan Regional Government (KRG) without the central authorities’ permission.

Baghdad cannot stop this momentum, however, and the Turks and the Kurds are keen to let the Iraqi central authorities restore some of its lost dignity over the issue by affording it some sense of control, which is now the only way to resolve the crisis without a conflict.

In November, Turkey signed an energy package with Iraqi Kurdistan (KRG) under which the semi-autonomous region plans independent energy exports via Turkey.

Kurdistan could eventually export some 2 million bpd of oil to world markets and at least 10 billion cubic meters per year of gas to Turkey.

Taner Yildiz, Turkish energy minister told media that Iraqi Kurdistan's resources will help diversify its energy supplies and reduce its $60 billion yearly energy tab, which continues to rise.

Expected to carry around 300,000-400,000 barrels per day (bpd), the pipeline is key to both sides.

Turkey, for its part, needs reliable sources of oil to feed its growing economy and also to diversify its imports away from Iran.

Up until now, Kurdistan has been exporting only 50,000 bpd. An oil pipeline does exist between Kirkuk and the Turkish port of Ceyhan, but it is controlled by Baghdad. Without a pipeline of its own, Kurdish exports have gone to Turkey by truck.

Although the initial export will be small relative to Iraq as a whole and only represents about one-sixth of Iraq’s total export potential, more Kurdish exports may follow and production could be ramped up with new discoveries as exploration continues unabated.

ADVERTISEMENT

The Turkish-KRG deal has significance for major oil companies as well, which will benefit from domestic supply and export through Ceyhan. Kurdistan has deals with ExxonMobil, Chevron and Total among other smaller operators.

By. James Burgess of Oilprice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News