21:30, 21 December, 2012
YEREVAN, DECEMBER 21, ARMENPRESS: Snaking their way from Kirkuk, a city 240 north of Baghdad, through Kurdistan and across Turkey’s eastern region of Anatolia to the Mediterranean are pipes that once carried 1.6m barrels a day of Iraqi oil to the global market and yielded fat transit fees to Turkey along the way, Armenpress reports referring to Economist. The infrastructure underpinned the two countries’ mutual dependence. But nowadays the balance of power has shifted. A third party, the Iraqi Kurds, has changed it. It is unclear who will emerge on top. But Iraq’s central government in Baghdad is on the defensive.
Wars, saboteurs and, since the 1990s, economic sanctions have left the Iraqi sections of the pipeline system in a mess. Barely a fraction of its capacity is used. One of the two parallel lines stands empty and the source that once fed them, the giant Kirkuk oilfield, is dilapidated. The oil ministry in Baghdad has vague ideas about revamping the pipeline but Turkey is hatching a different plan for its section of the Kirkuk-to-Ceyhan pipeline. Its souring relations with the government in Baghdad have spurred it to cultivate new ties with the Iraqi Kurds’ regional government in Erbil, which oversees the oil and gas that Turkey’s growing economy craves. A wide-ranging energy deal is in the works that will see state-backed Turkish firms and Western oil majors plough money into Kurdish infrastructure and oilfields, connecting them to Turkey and the world beyond. The deal could eventually allow for up to 2m b/d of Kurdish oil exports to go through Turkey. Last year, trade between Turkey and Iraqi Kurdistan amounted to $8 billion. Turkish money has paid for pristine airports in Erbil and Dohuk, an Iraqi Kurdish city further north, and for other large projects. Not long ago, Turkish politicians, wary of their own large and restless Kurdish minority still fight for autonomy in eastern Turkey, barely acknowledged Iraq’s autonomous Kurdish region.
Now Turkey’s government is using its commercial clout to press the Iraqi Kurds’ president, Masoud Barzani, to help restrain militant Kurds within Turkey. A stroke recently suffered by Jalal Talabani, a Kurd who is president of federal Iraq and who has often mediated between his kinsmen and the rulers in Baghdad may make it even harder to keep the calm.
Oil and gas are at the core of this warm new relationship between Turkey and Iraq’s Kurds. “Turkey has made a strategic shift in its relations with us,” says an official in a ministry in Erbil. “Whatever the scenario, our market is in Turkey,” writes the Economist.