News / Middle East

Turkey, Iraqi Kurdistan Seal 50-Year Energy Deal

FILE - Kurdistan Regional Government Natural Resources Minister Ashti Hawrami, right, shakes hands with Turkey's Energy Minister Taner Yildiz, Irbil, Iraq, May 2012.
FILE - Kurdistan Regional Government Natural Resources Minister Ashti Hawrami, right, shakes hands with Turkey's Energy Minister Taner Yildiz, Irbil, Iraq, May 2012.
Dorian Jones
Turkey and the Kurdistan Regional Government (KRG) in Iraq on Wednesday announced the signing of a 50-year deal to export Kurdish oil to the north.

KRG Prime Minister Nechirvan Barzani unveiled the deal during a speech to Iraqi Kurdistan's parliament in Irbil, capital of the Kurdish-dominated region in northern Iraq.

The agreement comes amid growing international criticism over the deepening relationship between Iraq's Kurdish region and Turkey — a relationship that bypasses Iraq's central government, straining Baghdad's relations with Irbil and Ankara.

In the opinion of Emre Iseri, a political scientist and energy expert at Turkey's Yasar University in Izmir, Iraq's energy-rich Kurdish region and energy-hungry Turkey are a perfect match.

"Turkey would like to become a regional energy hub, and so Turkey would like to diversify away from Russia and Iran," he said. "It also is thinking about its current account deficit and thinks that it can acquire cheaper oil and natural gas prices from Iraqi Kurdistan."

But Baghdad officials insist only Iraq's central government has the right to export Iraqi crude. Baghdad recently announced plans to take legal action against Ankara at the International Chamber of Commerce’s International Court of Arbitration in Paris. Iraqi officials have said any contracts between Kurdish authorities and foreign energy firms violate Iraq's constitution and are illegal unless formally sanctioned by Baghdad.

While Irbil rejects that position, Ankara has been trying to placate Baghdad for months. According to Soli Ozel, political columnist for the Turkish newspaper Haberturk, Ankara's efforts have largely failed.

"Baghdad protests it and [is] going to court about this," he said. "Obviously they have not looked favorably [on] such transactions and have not changed their minds about it. And the Americans registered their discontent, but that’s where we stand now."

Washington has repeatedly voiced criticism of Ankara’s direct dealings with Irbil, warning it could threaten Iraq's territorial integrity, a position rejected by both Irbil and Ankara. 

Some analysts say the KRG is in urgent need of funds from energy sales because Baghdad cut funding to the Kurdish region over its unilateral dealings with Ankara. 

With Iraqi Prime Minister Nouri al-Maliki still struggling to form a government following general elections, analysts say Irbil and Ankara could be seeking to exploit the prevailing political instability. However, some say the formation of a new government in Baghdad could lead to greater pressure on both Irbil and Ankara over their deepening energy cooperation.

"The northern Iraqi line seems to be a secure and reliable line at the moment," said Semih Idiz, diplomatic columnist for Al Monitor and the Turkish newspaper Taraf. Whatever the political climate, Idiz says, there will be no turning back.

"[The deal] ties in with other factors [that are related to] Turkey’s own Kurdish problems," he said, explaining the agreement is also a result of regional volatility and strained ties between Baghdad and Ankara. "There [are] political reasons, strategic reasons and also economic reasons for this. And Turkey has been steadily pushing forward with this project, [which indicates] that it is more or less a done deal."
 
The first batch of Kurdish oil, with an estimated market value of $110 million, was transported through Turkey on May 23. Turkey and the KRG have said the flow of Kurdish oil to international markets will continue despite Iraq's legal efforts to stop it.

You May Like

China May Be Biggest Winner From Ukraine Crisis

Missile sales, oil and gas shipments are among many areas that may drive Beijing and Moscow closer together in coming years More

Obama Faces Chaotic World, Limits of Power

Current foreign policy issues bring into focus challenges for US policymakers who are mindful of Americans' waning appetite for overseas military engagements More

SADC Meeting Lesotho Officials to Resolve Stalemate

Official says regional bloc has been engaged with leaders in Lesotho to resolve political disagreement that led to coup attempt More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
West Africa Ebola Vaccine Trials Possible by Early 2015i
X
Carol Pearson
August 30, 2014 7:14 PM
A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.
Video

Video Cost to Raise Child in US Continues to Rise

The cost of raising a child in the United States continues to rise. In its latest annual report, the U.S. Department of Agriculture says middle income families with a child born in 2013 can expect to spend more than $240,000 before that child turns 18. And sending that child to college more than doubles that amount. VOA’s Deborah Block visited with a couple with one child in Alexandria, Virginia, to learn if the report reflects their lifestyle.
Video

Video Chaotic Afghan Vote Recount Threatens Nation’s Future

Afghanistan’s troubled presidential election continues to be rocked by turmoil as an audit of the ballots drags on. The U.N. says the recount will not be completed before September 10. Observers say repeated disputes and delays are threatening the orderly transfer of power and could have dangerous consequences. VOA correspondent Meredith Buel reports.
Video

Video Ukraine Battles Pro-Russia Rebel Assault

After NATO concluded an emergency meeting to discuss the crisis in eastern Ukraine, the country is struggling to contain heavy fighting near the strategic port of Mariupol, on the Azov Sea. Separatist rebels are trying to capture the city, allegedly with Russian military help, and Ukraine's defense forces are digging in. VOA's Daniel Schearf spoke with analysts about what lies ahead for Ukraine.
Video

Video Growing Business Offers Paint with a Twist of Wine

Two New Orleans area women started a small business seven years ago with one thing in mind: to help their neighbors relieve the stress of coping with a hurricane's aftermath. Today their business, which pairs painting and a little bit of wine, has become one of the fastest growing franchises across the U.S. VOA’s June Soh met the entrepreneurs at their newest franchise location in the Washington suburbs.
Video

Video Ebola Vaccine Trials To Begin Next Week

The National Institutes of Health says it is launching early stage trials of a vaccine to prevent the Ebola virus, which has infected or killed thousands of people across West Africa. The World Health Organization says Ebola could infect more than 20,000 people across the region by the time the outbreak is over. The epidemic has health experts and governments scrambling to prevent more people from becoming infected. Zlatica Hoke has more.
Video

Video Asian Bacteria Threatens Florida Orange Trees

Florida's citrus fruit industry is facing a serious threat from a bacteria carried by the Asian insect called psyllid. The widespread infestation again highlights the danger of transferring non-native species to American soil. VOA’s George Putic reports.
Video

Video Aging Will Reduce Economic Growth Worldwide in Coming Decades

The world is getting older, fast. And as more people retire each year, fewer working-age people will be there to replace them. Bond rating agency Moody’s says that will lead to a decline in household savings; reducing global investments - which in turn, will lead to slower economic growth around the world. But experts say it’s not too late to mitigate the economic impact of the world’s aging populations. Mil Arcega has more.
Video

Video Is West Doing Enough to Tackle Islamic State?

U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Coalition to Fight Islamic State Could Reward Assad

The United States along with European and Mideast allies are considering a broader assault against Islamic State fighters who have spread from Syria into Iraq and risk further destabilizing an already troubled region. But as VOA State Department Correspondent Scott Stearns reports, confronting those militants could end up helping the embattled Syrian President Bashar al-Assad.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.

AppleAndroid