Much Confusion About The Energy Deal With Iraqi Kurds

TURKEY - In Brief 02 Dec 2013 by Atilla Yesilada
Baghdad must have received solid intelligence that Ankara and Erbil did ink a broad oil and gas cooperation agreement, because it closed the airspace over Iraqi Kurdistan to Turkish flights. Energy Minister Taner Yilmaz was dispatched to Bagdad first to patch things up with his counterpart Mr. Sahristani; and then to Erbil to calm down Mr. Nazervan Barzani. At the end, none of the three parties would confirm or deny the energy deal, but we still think it is signed and will be implemented peace-meal.It may be too far in the horizon, but the  alleged treaty with Iraqi Kurdistan to transport 2 million barrels/day oil and at least 10 billion cubic meters of NG by 2017 is the only investment story for Turkey.  Moreover, ff Ankara botches this deal, it may lose its final ally in the region, the Iraqi Kurds—which would complicate the dormant Peace Process.  Despite denials, we have fairly reliable sources telling us that the deal has been signed, but Ankara apparently didn’t anticipate the vicious outburst of anger from Baghdad, or the very specific words of regret from the White House. As a result the treaty shall remain secret for the time being.The best proof for our assertion will come early next year when the completed mini-pipeline starts pumping 300K barrels/day from Kurdistan to the Turkish segment of the Kerkuk-Ceyhan pipeline.

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