• 1 min UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 hours Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 4 hours Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 6 hours German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 7 hours Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 9 hours Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 1 day Oil Prices Rise After API Reports Major Crude Draw
  • 1 day Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 1 day Gazprom Speaks Out Against OPEC Production Cut Extension
  • 1 day Statoil Looks To Lighter Oil To Boost Profitability
  • 1 day Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 1 day Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 1 day Whitefish Energy Suspends Work In Puerto Rico
  • 1 day U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 2 days Thanksgiving Gas Prices At 3-Year High
  • 2 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 2 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 2 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 2 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 2 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 2 days ConocoPhillips Sets Price Ceiling For New Projects
  • 5 days Shell Oil Trading Head Steps Down After 29 Years
  • 5 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 5 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 5 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 5 days Venezuela Officially In Default
  • 5 days Iran Prepares To Export LNG To Boost Trade Relations
  • 5 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 6 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 6 days Rosneft Announces Completion Of World’s Longest Well
  • 6 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 6 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 6 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 6 days Santos Admits It Rejected $7.2B Takeover Bid
  • 7 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 7 days Africa’s Richest Woman Fired From Sonangol
  • 7 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 7 days Russian Hackers Target British Energy Industry
  • 7 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
Norway’s $35B Oil Stock Dump Could Hurt The Industry

Norway’s $35B Oil Stock Dump Could Hurt The Industry

The world’s largest sovereign wealth…

Markets Shrug On Flat Oil Rig Count

Markets Shrug On Flat Oil Rig Count

The United States oil rig…

Turkey Secretly Builds Presence in Iraqi-Kurdistan Oil Industry

Turkey Secretly Builds Presence in Iraqi-Kurdistan Oil Industry

In an effort to wean itself off expensive energy imports from Russia and Iran, Turkey has been secretly building its presence in Iraqi-Kurdistan, both on its own, and in joint ventures with Exxon Mobil.

In a strategy that will surely anger Baghdad, just a few months ago Ankara established a state-backed firm to explore for oil and gas in Kurdistan. TPIC and Botas, the state-owned oil firm and pipeline operator, are shareholders of the new firm that has already started exploration in a dozen blocks in Kurdistan, including several ventures where Exxon Mobil is already present.

Turkey’s energy deficit is growing, making the country’s economy very vulnerable to external events and price shocks. Forecasts only see their demand for energy growing, so Turkey has to work hard to try and reduce the cost of its imports.

A source closely involved with the state-backed company operating in Kurdistan told Reuters that “when you have such an energy deficit and you have such a big potential on your border, you can't let Baghdad or anything else get in the way. You have to find a formula and make sure this oil flows through your country.”

Turkey risks trouble with Baghdad, who has constantly warned foreign investors and governments from working with Kurdistan, claiming that those oil fields still belong to Iraq. They fear that efforts to increase the independence of the Kurdistan region will only work to ultimately break-up Iraq.

But Ankara has, as of yet, been unperturbed by those calls, and along with foreign oil majors such as Exxon, Chevron, and Total, have already signed exploration deals with the KRG.

Turkey is also involved in the construction of a new pipeline that will allow Kurdish crude to be transported from the Taq Taq oilfields directly acorss the border into Turkey, where it will join the Kirkuk-Ceyhan pipeline. This route will allow the KRG to avoid Baghdad and any payments associated there.

In 2012 the KRG stopped exporting their crude via the Iraqi federal pipelines due to payment disputes, and instead began using trucks to take the oil to Turkey.

Once finished, the pipeline will start pumping around 200,000 barrels a day into Turkey.

Turkeys quiet expansion into Kurdistan is taking place at the same time as a fragile peace is begin negotiated with Kurdish militants, after a 30 year dispute.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News