Iraq’s oil and gas sector to get help of Turkey

Member of OPEC – Iraq is in need for new oil pipelines for exporting crude oil from the country to the doors of world market. Iraq has prepared for raising its production level and at the same time, being neighbor to Iraq, Turkey has become one of keen members to help out Iraq in this regard. It will mutually profit both the nations, as hoped by the Energy Minister on this Friday.

Presently, Iraq is world’s fastest growing oil exporter, aiming to boost its growth by 2.4 million barrels per day oil that it ships to different parts of the world. However, due to the dispute with Kurdistan region, northern oilfield Kirkuk is a point of concern for the country. It has to be noted that Kirkuk is one of the highest producing oilfields of Iraq.

Though, Iraqi shipments have undergone swift boost in oil output due to a diverse number of reasons. Foreign investments are certainly on hike after the boosts took place. However, Taner Yildiz stressed over infrastructural development, with the rise of oil production as he thinks if the production raises infrastructural insufficiency would cause inconveniences.
He also added, "The outlets via Basra are not enough for such a capacity, so nothing is more natural than the construction of new pipelines." He is also hopeful about Turkey’s role in this context.

Currently only a fraction of the 1.5 million bpd-capacity Iraq-Turkey pipeline from Kirkuk to the Mediterranean hub of Ceyhan is used as Iraq exports most of its oil from the south. Building pipeline projects have been discussed already between Baghdad and Ankara in past. However, no projects have been sanctioned to get started yet. Due to the different stances over Syrian crisis, Kurdish disputes and some other diplomatic affairs pipeline building process could not have been initiated.
Turkish companies were part of the five consortiums in southern Iraq that have secured projects worth $25 billion, Yildiz said. He also said that Kurdistan is the natural area for them for negotiations and discussions.

Ankara and the Kurdistan Regional Government (KRG) have been negotiating energy deals ranging from exploration to exporting since last year a move that has antagonized Baghdad which says it alone has the authority to control exports and sign contracts. Adding this he said that south and north of Iraq are the two natural areas of development.

Turkish President Abdullah Gul also discussed Iraq's energy resources in a speech at the same conference. He remarked, “"New oil and gas pipelines that will be constructed parallel to Iraq's north-south lines would allow Iraq's resources to be shipped to both our country and to Europe.”