Monday, November 11, 2013

Iraq’s Kurdish region pursues ties with Turkey — for energy revenue and independence page 2 of 2


Iraq’s Kurdish region pursues ties with Turkey — for energy revenue and independence


But Turkey’s policy toward the Kurds has shifted dramatically. Relations warmed as Turkey began to see growing economic opportunities in Iraqi Kurdistan, including several unexploited natural gas fields. Turkey needs cheap and plentiful energy supplies to keep its economy growing quickly.
In March, Turkish Prime Minister Recep Tayyip Erdogan and the Kurdish region’s prime minister, Nechirvan Barzani, finalized a comprehensive energy agreement. It calls for a new state-owned entity called the Turkish Energy Co. to explore for oil in several parts of Iraqi Kurdistan and to facilitate the pipeline export of oil and natural gas.
A boy who was wounded by flying debris due to Super Typhoon Haiyan stays at the ruins of his family's house in Tacloban city November 10, 2013. Haiya, one of the most powerful storms ever recorded killed at least 10,000 people in the central Philippines province of Leyte, a senior police official said on Sunday, with coastal towns and the regional capital devastated by huge waves. Super typhoon Haiyan destroyed about 70 to 80 percent of the area in its path as it tore through the province on Friday, said chief superintendent Elmer Soria, a regional police director.   REUTERS/Erik De Castro (PHILIPPINES - Tags: DISASTER ENVIRONMENT TPX IMAGES OF THE DAY)

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Most details of the deal have been kept secret, but two senior Turkish government officials, speaking on the condition of anonymity because of political sensitivities, outlined its broad parameters and confirmed the signing.
Beyond the oil sector, Turkish companies are helping transform Irbil, one of the oldest continuously inhabited cities in the world, into an aspiring capital of commerce with a skyline full of cranes. In the past five years, Turkish companies have built an international airport, two luxury hotels, gated communities for expats and a towering office park named Empire World.
But the oil deal has raised alarms in Washington. When Erdogan visited the United States in May, President Obama emphasized his administration’s opposition, according to two government officials, one American and one Turkish, who were briefed on the meeting but were not authorized to speak to the news media. The White House pushed Turkey to reformulate the agreement to address the concerns of Iraq’s central government, which claims primary authority over oil development and exports.
But that proposal went nowhere with the Kurds, who keenly remember the oppressive policies of previous Arab-majority governments in Baghdad. From the Kurdish perspective, one of the primary benefits of an alliance with Turkey is the validation of an expansively federalist interpretation of Iraq’s constitution, under which the Kurdistan region claims almost total autonomy.
“We have learned a lesson from history,” said Falah Mustafa Bakir, head of the Kurdistan region’s Department of Foreign Relations. “Our natural resources have strengthened our hand, our position, our political weight.”
Pipeline to the future
The regional government has signed more than 50 contracts with dozens of oil companies, including Exxon Mobil and Chevron. But the landlocked Kurds can only persuade their private-sector partners to develop billions of dollars worth of oil production if there is a reliable way to transport all of that crude to international markets — and that means pipelines.
In the past, the Kurds have struck a series of temporary agreements with Baghdad to export through federal Iraqi infrastructure. But Baghdad, loath to condone independent oil ambitions, has accepted the Kurdistan region’s crude while withholding most of the expected payments.
Turkey has guaranteed that Iraqi Kurdistan will receive revenue from its oil and gas sales directly, circumventing Baghdad.
The Turkish state company Botas has begun building a gas pipeline toward the Kurdish border, according to a senior Turkish energy official who spoke on the condition of anonymity because of the political sensitivities. Under the terms of the March agreement, the Kurdistan region will ultimately export at least 10 billion cubic meters of natural gas per year — enough to meet more than one-fifth of Turkey’s current consumption.
The Syrian civil war has helped push Turkish and Kurdish leaders together. Seeing growing instability in the largely Kurdish areas of northern Syria, Erdogan has been eager to enlist Massoud and Nechirvan Barzani — the uncle-nephew team that leads the Kurdistan Regional Government — to exert a moderating influence on militant Kurdish groups.
For the Kurds, deteriorating security in the rest of Iraq has helped create political opportunity. Maliki, who is seeking reelection as prime minister next year, faces widespread public frustration and political challenges from the fractious Shiite parties that form his base and is likely to need Kurdish support to win another term.
In the Kurdistan region, the Barzanis just led their political party to a victory in regional elections through a campaign that proudly linked oil with Kurdish nationalism. In one television commercial, a young boy in the desert smiles with delight as he walks along the region’s new pipeline, following the path of oil flowing toward a sunset in Turkey.  WASHINGTON POST

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