Turkey proposes to mediate long-running dispute between Baghdad, Kurdistan Region over dividing oil revenue
Baghdad (IraqiNews.com) Turkey submitted a proposition to mediate a long-running dispute between Iraq and Kurdistan Region over the diving the oil revenue of Kurdistan Region.
The Energy Minister Taner Yildiz told reporters in Ankara that “The system we will establish will certainly help resolve the dispute between the Kurdish regional government and the central government.”
Iraq’s federal government in Baghdad and autonomous Kurdistan have long been divided over how to split energy revenue, which has paralysed development of new oil and gas projects in the region. Energy-hungry Turkey is keen on seeing progress on the issue to satisfy its growing energy needs.
Yildiz also said “Ankara has suggested it can serve as an independent intermediary by having oil revenues deposited into an escrow account at a Turkish state bank. Both Baghdad and Kurdistan would have full information on funds in the account and would decide between themselves on the percentage of revenue to be paid to each,” noting that ” I discussed the proposal with Hussein al-Shihristani, Iraq’s deputy prime minister responsible for energy affairs, during a visit to South Korea last month.”
“Baghdad wasn’t sure what type of system it wanted, adding that “energy should be used as an instrument for peace, not tension,” pointing out, Asked about US response to the Turkish proposal for mediation, Yildiz said: “I am of the opinion that the formula we have developed will be approved. The more this pipeline operates at full capacity, the more revenues Iraq will receive.”
Turkey is planning to increase use of the existing pipeline more active and wants to add additional oil and gas pipelines along the route.
Yildiz said the Turkish Energy Company established by the government to operate in Iraqi Kurdistan was seeking to partner with a third company in six of the blocks as part of Ankara’s efforts to step up its presence in the north.
“This will be an agreement that will be interest of both Turkey and Iraq,” he added.
The minister’s comments come a day before Iraqi Kurdish leader Massud Barzani meets with Turkish Prime Minister Recep Tayyip Erdogan in the Kurdish-majority Turkish city of Diyarbakir, in a landmark trip branded as “historic” by Ankara.
Yildiz said he would not travel to Diyarbakir for talks with Barzani and not the finalization of energy deals during the visit.