Can Turkey Leverage Kurdish Crude?

by Denise Natali | Al-Monitor

The proposed energy framework between Turkey and the Kurdistan Regional Government (KRG) has raised hopes for independent Kurdish oil exports and a viable way to pay international oil companies (IOCs) in the Kurdistan Region. Some think the framework could eventually give the Kurds an alternative revenue source that replaces Ankara for Baghdad as the region’s financier. Yet, while encouraging Kurdish energy development, Turkey still has made no clear commitment to an independent pipeline that would circumvent Iraqi state sovereignty. This is because Ankara’s endgame is not only securing Kurdish crude, but maximizing Turkish commercial interests in Iraq. Doing so will likely entail negotiations with Baghdad that include Erbil, but which prioritize Iraq’s territorial integrity, secure Ankara’s interests and seek concessions from the Kurds.

Turkey’s quest for Kurdish crude is not surprising, given its geographical proximity to the region, domestic energy needs and growing influence over the KRG. Ankara is not only well-positioned to continue "bartering" operations with Erbil — exchanging trucked, Kurdish hydrocarbons for diesel products — but to further entrench its energy interests by establishing a state-affiliated company that would invest in Kurdish oil fields. This tactical move would allow Ankara to circumvent Baghdad’s blacklist of companies without jeopardizing its state-led (TPAO) hydrocarbons investments in southern Iraq.

Still, beyond creative media reporting and sporadic, inflammatory remarks by Turkish Prime Minister Recep Tayyip Erdogan, Turkey has taken no real steps to promote viable, independent Kurdish exports that would jeopardize Turkish investments in the rest of Iraq. Erdogan may have stated the KRG’s rights to sign its own energy deals within the framework of the Iraqi constitution, but he has affirmed that Turkey’s interests were to increase volumes of the existing pipeline. To ease concerns by Iraqis and international partners, Turkish Minister of Energy Taner Yildiz further indicated that Turkey remains committed to southern Iraq. He also suggested ways that Turkey could develop a joint project with his “Iraqi brethren,” including a third pipeline that would export southern Iraqi crude to Turkey.

Turkey favors Nabucco West as gas export route

By Gulgiz Dadashova | AzerNews

Turkish Energy Minister Taner Yildiz has said that the project on gas transportation from the Caspian region to Europe - Nabucco West - is a more ambitious project than Trans Adriatic Pipeline (TAP).

Nabucco West and TAP are viewed as options to transport gas from the Azerbaijan's biggest gas field and one of the largest in the world - Shah Deniz.

Nabucco West is a short-cut version of the Nabucco project, which envisages construction of a pipeline from the Turkish-Bulgarian border to Austria. The project's shareholders are Bulgarian Energy Holding, Romanian Transgaz, Turkish Botas, Austrian OMV, German RWE and Hungary's FGSZ.

TAP project is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and further into western Europe. TAP's initial capacity will be 10 billion cubic meters per year, but it is easily expandable to 20 billion cubic meters. TAP's shareholders are AXPO of Switzerland (42.5 percent), Norway's Statoil (42.5 percent) and E.ON Ruhrgas of Germany (15 percent).

The minister said that while choosing the final route for gas supplies to Europe, the economic benefits from transportation will be taken into account. "In this sense the Nabucco West project is more ambitious."

However, Taner added, it is the Shah Deniz consortium, who will choose the final route.

Nabucco West and TAP submitted their bids to the Shah Deniz consortium in late March.

Turkey says joint energy projects with Greek Cyprus, Israel possible

by Bülent Keneş | Today's Zaman

Weary of a lingering political tension undermining potential large-scale energy deals in its surrounding region, Turkey sees it possible to cooperate with Greek Cyprus and Israel in joint energy projects in the Mediterranean “so long as the political atmosphere allows it,” Turkish Energy Minister Taner Yıldız told a meeting in Baku on Monday.

The minister was speaking at a meeting with the State Oil Company of Azerbaijan Republic (SOCAR) president on the sidelines of the World Economic Forum Strategic Dialogue on the future of the South Caucasus and Central Asia that kicked off in Baku on Monday.

“In case of a possible remedy to political issues that remain a gridlock hindering further prosperity in our region, Turkey will be ready to take steps in order to ensure a lasting peace environment,” Yıldız said in a rare statement of what can be regarded as "extending an olive branch.”

Underlining that a recent Israeli apology to Ankara over the Mavi Marmara raid should not be seen as an excuse for future energy partnerships with this country, Yıldız told reporters: “But it is possible that a cooperation in energy between Turkey and Israel follow an anticipated rapprochement.” He said Turkey will then “not only warm to partnering in energy deals with Israel but also would like to see Greek Cyprus be involved here.”

But the minister has some reservations as he cites a single condition Turkey has long seen as vital: Greek Cyprus abiding by international law. “If we are able to make sure the energy resources in the eastern Mediterranean are made use of in line with international law, this will be an opportunity for regional peace and stability,” Yıldız said. “If we see the energy plans that are against international law continue, then this is a threat to regional security.”

After Cyprus bailout, Israeli apology, gas takes centre stage

by Alakbar Raufoglu and Andy Dabilis | Southeast European Times

The prospect of normalisation between Israel and Turkey following last month's apology has opened the questions about the relationship between Israel, Greece and Cyprus.

The fallout between Israel and Turkey over the past four years pushed Israel for strategic and economic reasons to cozy up to Greece and Cyprus, Turkey's historic rivals in the Eastern Mediterranean.

"The relations that were built in the last four years with Greece and Cyprus were to a great extent a result of the severe crisis with Turkey," Alon Liel, the former Israeli ambassador to Turkey, told SETimes.

Some analysts say this geopolitical and economic calculation could change following Israeli Prime Minister Benjamin Netanyahu's apology to Turkey for the 2010 raid on the Turkish aid ship, the Mavi Marmara, as it tried to breach an Israeli blockade of Gaza, resulting in the death of nine Turkish activists.

Mavi Marmara led to a severing of relations between once close regional powers. The apology opened the way to a still nascent rapprochement.

The prospect of Turkey and Israel rekindling their once close relationship has many observers looking to the large but disputed gas deposits in the Eastern Mediterranean that could transform the geopolitical future of the region.

Minister: Turkey uses energy resources for regional stabilisation and development

by A. Taghiyeva | Trend


Turkey is using energy resources and power projects for the stabilisation and development of the region, Turkish Minister of Energy and Natural Resources Taner Yildiz said at a meeting of the World Economic Forum (Davos Forum) in Baku today.

Turkey has restructured its energy sector twofold during the past 10 years, he said.

He added that during this period, the country's GDP has increased threefold. This testifies to the successful development of the Turkish economic and energy sectors.

This means because Turkey has achieved so much in the energy sector, today the country can implement different energy and economic projects with many world countries.

 "Along with the implementation of the South Stream project with Russia, Turkey is also successfully implementing the Trans-Anatolian gas pipeline (TANAP) project with fraternal country Azerbaijan," Yildiz said.

 "On the other hand, Turkey continues its energy cooperation with Iran, despite the political problems of the latter," he said. "It is also developing a partnership in the energy sector with neighbouring Iraq."

The minister also stressed such projects as Baku-Tbilisi-Kars and Baku-Tbilisi-Erzurum, which are the key tasks in the transport and energy security of the region.

According to Yildiz, while connecting Asia's production capacity with the European consumer markets, Turkey plays an important role of an energy transport bridge in the region.

Source: http://en.trend.az/capital/business/2136525.html