Turkey, Iraqi Kurdistan sign landmark energy contracts

Reuters

Turkey and Iraqi Kurdistan signed a package of landmark contracts earlier this week that will see the semi-autonomous region's oil and gas shipped to international markets via pipelines through Turkey, sources close to the deal told Reuters on Friday.

The sources said the deals were signed during Kurdistan Regional Government (KRG) Prime Minister Nechirvan Barzani's three hour-long meeting with Turkish Prime Minister Tayyip Erdogan on Wednesday.

The move is likely to further infuriate Baghdad, which claims the sole authority to manage Iraqi oil and which said late on Thursday that any energy deal with Kurdistan would be "an encroachment on the sovereignty of Iraq".

Source:  http://uk.reuters.com/article/2013/11/29/uk-turkey-iraq-oil-idUKBRE9AS06720131129

US urges talks for energy in East Med

Hürriyet Daily News

The United States has called for continued dialogue between Turkey and the relevant parties in exploring energy resources both in the Eastern Mediterranean as well as in Iraq.

Carlos Pascual, the U.S. special envoy, called for dialog among parties on the potential resources that are yet to be explored in the Eastern Mediterranean, at the Atlantic Council Summit in Istanbul.
Discoveries of significant amounts of gas around Cyprus have brought with them political problems, as Turkey raised objections about exploration and ownership rights before a political settlement was reached on the divided island. Strains in Israeli–Turkish relations further complicated the transport of gas to a European market via Turkey, which experts agree will be the most commercial way.

It is too early to predict how Eastern Mediterranean gas will reach international markets according to Pascual, who said conversations between countries and companies would be critical to find the most commercially viable and politically acceptable solution.

Meanwhile Leonardo Bellodi, senior vice-president for public Affairs of ENİ said “things looked improved compared to a year ago,” when asked by the Hürriyet Daily News. Turkey had warned companies last year not to go ahead with exploration works in the Mediterranean or face consequences.

Iraq Kurds to Pump Oil to Turkey in Truce With Baghdad

Bloomberg        Selcan Hacaoğlu & Onur Ant

Iraq’s Kurds plan to start pumping oil to Turkey next month via a pipeline controlled by the central government in Baghdad, signaling an easing of their dispute over resources, according to two people familiar with the plan.

The new line will take Kurdish oil into the existing pipe that runs from Kirkuk in Iraq to Turkey’s Mediterranean port of Ceyhan, initially carrying 150,000 barrels a day starting in December, according to the Turkish energy industry officials who asked not to be identified because the information isn’t public. An Iraqi energy industry manager, who requested anonymity for the same reason, said the state oil company has accounted for the extra oil in 2014 plans.

Ashti Hawrami, the Kurdish Regional Government’s natural resources minister, said at a press conference last month that the 40-kilometer pipeline will have a capacity of 300,000 barrels a day. Mehmet Sepil, president of London-listed Genel Energy, said at the same conference that the pipeline from Dohuk to Fishkabur on the Turkish border will carry 200,000 barrels a day from its Tawke and Taq Taq fields.

The Iraqi official said the Kurdish oil will be metered when it feeds into the main pipeline, at Fishkabur near the Turkish border, and again when it arrives at Ceyhan.

The agreement signals a truce on the issue between the Iraqi Kurds, who say they should have control over oil and gas resources in the north, and the Baghdad government, which argues that all energy transactions need central approval.

Iraq says Big Oil to spend $25 bln next yr, despite unrest

REUTERS     Peg Mackey and Ahmed Rasheed

 
* Foreign oil firms due to spend over $25 bln in 2014
* Oil output in south expected to rise by average 500,000 bpd
* Giant southern oilfields, central fields seen safe from attack
* Smaller Nineveh oilfields, Anbar gasfield more vulnerable
* China seeks over 1 million bpd of Iraqi crude

Big Oil is poised to spend over $25 billion next year to boost output from Iraq's giant oilfields towards record rates, Iraq's deputy prime minister for energy said, even as Baghdad struggles to control spillover from the civil war in Syria.

Far from harm's way, the prized oilfields of southern Iraq - drivers of the country's oil expansion - are expected to pump an extra 500,000 barrels per day (bpd) in 2014, said Hussain al-Shahristani. Total output this year is set to average just over 3 million bpd, holding Iraq's rank as OPEC's no. 2 producer.

But Baghdad is raising its guard at the smaller fields of Najmah and Qayara - operated by Angolan Sonangol, which lie in the al-Qaeda heartland of Nineveh province in the northwest and at the Akkas gasfield, operated by South Korea's Kogas, in the western Anbar province near the Syrian border, he said.

"We are definitely concerned about the upsurge in violence, but our concern is for the Iraqi people throughout the country. Iraq is trying its best to combat terrorism," he said in an interview in his office in the heavily fortified green zone.

"The security situation has not affected the oilfields in the south and central Iraq and we haven't noticed any hesitation or slow down in investment by the companies."

Turkey's pipe dreams

Arabian Business       Lionel Mok

Turkey has continued to make the headlines in the Middle East’s oil and gas industry over the last several months due to a number of factors which include the growing divide between the Kurdistan Regional Government (KRG) and the Federal Government of Iraq (FGI); and the recent signing of the Trans-Adriatic Pipeiline (TAP) and Trans-Anatolian Pipelines (TANAP).

Despite its unremarkable national oil production industry that produces, on average, 50,000 barrels per day (bpd) from reserves that total approximately 270 million barrels of oil, the country has made itself critical to the world’s energy market, while also managing to satisfy growing domestic consumption of over 700,000 bpd.

Turkey owes its gravitational pull in the energy market to its physical geography. As the only landmass standing between the Middle East and Europe, and also the Black and Mediterranean Seas, Turkey is well positioned to become an energy hub and a transit point.

The country is in proximity to 71.8% of the world’s proven gas reserves and 72.7% of the world’s proven oil reserves. It neighbors Iran, Iraq the recently discovered Eastern Mediterranean reserves near Lebanon; and it is less than 250 kilometers away from the Caspian Sea, home of the world’s largest oil discovery in the last thirty years.

By 2004, the Turkish straits of the Bosphorus and the Dardanalles, had the capacity to transit 3.4 million barrels of oil to European markets every day. At the same time, a terminal on Turkey’s Mediterranean coast at Ceyhan, facilitates oil exports from northern Iraq via a pipeline from Kirkuk and from Azerbaijan through the Baku-Tbilisi-Ceyhan pipeline. The Kirkuk-Ceyhan pipeline is Turkey’s largest, with a capacity of 1.65 million bpd.

The planned TANAP will include a natural gas pipeline system running from the Georgia-Turkey border to the Turkey-Greece border, while the TAP, will transport the same natural gas from Greece via Albania and the Adriatic Sea to Italy and further to markets throughout Western Europe.

Iraq to Turn up Oil Tap This Year - Output to Rise by 300,000 - 400,000 Barrels a Day by 2014

The Wall Street Journal

Output to Rise by 300,000 - 400,000 Barrels a Day by 2014

Four years after war-scarred Iraq enlisted major oil companies to develop its oil fields, the country is about to turn up the tap.

Output is set to rise sharply in coming months with help from new oil fields in the south, Hussein al Shahristani, the Iraqi deputy prime minister for energy, said in Dubai on Tuesday.

The biggest contribution will come from the gigantic Majnoon field, where Royal Dutch Shell
PLC last week began testing production. Output there is expected to rise to almost 200,000 barrels a day before the end of the year, Mr. Shahristani said at a conference in Dubai.

The Halfaya field in southeastern Iraq should add another 50,000 barrels per day before the end of the year.

"There are increases in other fields, so in total we should add at least 300,000, perhaps more like 400,000 barrels," he said.

As Iraq is producing about 3.3 million barrels a day at present, that would make about 3.6 million or 3.7 million by the end of the year, he said.

The best market for the new oil in terms of cost would be Asia, he said, adding that Iraq wants to ship to different places as insurance against interruptions in trade routes. Iraq is also looking to ship oil through Syria along an established route once the civil war ends there.

Iraq Central Government Threatens to Cut Revenue to Kurds Over Pipeline to Turkey

Bloomberg Business Week

Iraq central government threatened to cut oil revenue to the Kurdish north in a deepening standoff over a new export pipeline that companies from DNO International ASA (DNO) to Genel Energy Plc (GENL) plan to use to ship crude from the region.

The government in Baghdad may refuse to give the 17 percent of annual earnings from oil sales allocated to the semi-autonomous Kurdish provinces if they bypass central authorities and start operating a link through Turkey by year-end, Hussain al-Shahristani, deputy prime minister for energy affairs, said in an interview in Dubai yesterday.

“We have our options, and you will hear them when we adopt measures, as this is a big loss for Iraq,” he said. “No Iraqi would accept that they take 17 percent of Iraq’s revenue from crude produced outside of Kurdistan and at the same time all of the revenue of the crude produced in Kurdistan.”

 

The Kurdistan Regional Government halted crude exports through the government-run pipeline in December amid a dispute with the Oil Ministry in Baghdad over the sharing of crude sales revenue and payments owed to companies such as DNO and Genel Energy. The Kurds, who are building export pipelines as a step toward self-sufficiency, estimate their oil reserves at 45 billion barrels.

The Iraqi government insists that the Kurds link their new crude export pipeline to the main government pipe at a metering station near the Turkish border, Shahristani said.

“They refused and said they want to link it after the metering station to prevent the Iraqi government from knowing the quantity of crude they are exporting,” he said. “The real problem is that they don’t want anyone to know how much they are producing and selling.” 

Anglo-Turkish company discovers new oil in KRG

Hurriyet Daily News

Genel Energy, Anglo-Turkish oil and gas independent, has announced that it has discovered new commercial oil reserves in northern Iraq.

In a written statement yesterday, Genel Energy confirmed the existence of a commercial oil discovery in the Ber Bahr 1 exploration well in the Kurdistan Region of Iraq (KRG).

“The Ber Bahr well adds a further commercial oil discovery to Genel’s already significant KRI resource base,” the statement said. The company plans to begin a phased development of the field in the second half of this year. Genel Energy holds a 40 percent working interest in Ber Bahr. Gulf Keystone Petroleum Ltd holds a 40 percent working interest and the KRG holds the remaining 20 percent interest.

Genel Energy now operates in seven sites in the KRG, including Chia Surkh, Dohuk, Miran, Bina Bawi, Taq Taq, and Kewa Chirmila. However, there is a long-running dispute between the central government in Baghdad and the autonomous KRG over how to develop the country’s resources.

Source: http://www.hurriyetdailynews.com/anglo-turkish-company-discovers-new-oil-in-krg.aspx?pageID=238&nID=47921&NewsCatID=348

Turkey offers pipelines to Cyprus, Israel, Iraq

Hurriyet Daily News

Israeli and Greek Cypriot officials and representatives of Turkish Cyprus all agree on the reality that natural gas produced in the eastern Mediterranean will get its utmost feasibility by a pipeline passing through Turkey, Energy Minister Taner Yıldız tells the Daily News

Energy-hungry Turkey has offered to cooperate with its oil and gas-rich southern neighbors for the exploration and transportation of their hydrocarbon products to world markets via Turkey. It has particularly called out to Israel and Cyprus, which recently had problems over the legality of the licenses issued for petroleum exploration in the eastern Mediterranean. 
“Israeli officials, local officials in Greek Cyprus and representatives of the TRNC [Turkish Republic of the Northern Cyprus], they have all agreed on one reality: The natural gas to be produced from this region will get its utmost feasibility by a pipeline that will pass through Turkey. All relevant figures prove this idea,” Energy Minister Taner Yıldız told the Hürriyet Daily News in a comprehensive interview outlining the Turkish government’s energy policies regarding oil and gas reserves of its southern neighbors.

Yıldız held substantial meetings with acting Secretary of Energy Daniel Poneman and U.S. President Barack Obama’s special envoy for energy issues Carlos Pascual last week in Washington. The meetings were crucially important as the two allies found themselves on opposite sides on a number of issues related to Baghdad-Ankara tension over the latter’s growing interest in making deals with the Kurdistan Regional Government and to the Turkey-Cyprus quarrel over the Greek Cypriot government’s ambitious moves for oil exploration in the disputed areas of the Mediterranean.

Kurdish crude sales to rise as exports reach second Turkish port

Reuters          Julia Payne and Peg Mackey


* Taq Taq crude exports to reach about 60,000 bpd by end June
* Kurdistan to start deliveries to second terminal in Turkey
* Crude in steady stream to Northern Europe


Iraqi Kurdistan's crude oil sales to world markets, deemed illegal by Baghdad, are set to rise by nearly 50 percent next month as trucks start deliveries to a second export terminal in Turkey, industry sources in the region said on Wednesday.

Crude exports from the Taq Taq oilfield in the autonomous northern region to Turkey's Mersin port started at a trickle in early January and have risen to just over 40,000 barrels per day (bpd).

They are expected to hit around 60,000 bpd by the end of June as trucks unload at the neighbouring Dortyol terminal in southern Turkey.

Oil lies at the heart of a feud between the central government and Kurdistan. Baghdad says it alone has the right to control exports and sign deals, while the Kurds say their right to do so is enshrined in Iraq's federal constitution.

In retaliation, Iraq's State Oil Marketing Organisation (SOMO) sent letters warning customers not to touch any oil that had not been marketed by SOMO and the ministry intends to sue producers, namely Anglo-Turkish firm Genel Energy.

Turkey eyes oil, gas deals with Iraqi Kurdistan

Reuters


Turkey is looking to sign commercial contracts this year with Russian and U.S. companies operating in northern Iraq for joint oil and gas exploration, Turkey's Energy Minister Taner Yildiz told Reuters.

Turkish Prime Minister Tayyip Erdogan last week discussed U.S. concerns about Turkey's deepening energy ties with Iraqi Kurdistan during meetings in Washington with President Barack Obama.


Minutes before his departure for Washington, Erdogan announced that a Turkish company already had a contract in place with U.S. energy company Exxon Mobil but declined to provide details until after the visit.
Yildiz, who was in Erdogan's delegation, said the discussions with Obama and his team were very positive and fruitful.

"We are likely to be involved with Russian and American companies in northern Iraq for different projects like oil and gas exploration. And this year, state-owned and private companies could sign commercial contracts with northern Iraq," he said in an interview.

He declined to name companies.

Exxon was the first to sign up for exploration deals with the Kurdistan Regional Government (KRG). Others including Chevron, Total and Russia's Gazprom Neft have followed.

Turkey-Kurdish oil deal reflects end of post-Ottoman order

David Gardner      Financial Times

Confirmation last week that Turkey plans to buy into the oil and gas wealth of the self-governing Kurdish region of northern Iraq has led to warnings – most stridently from the US – that Ankara is gambling with the break-up of Iraq. Indeed. But there is more at stake than that. Drop a rock in any pool in this febrile region – now hyperconnected in all the wrong ways – and the ripples will reach every shore.

In Iraq, the Kurdistan Regional Government and the national authorities in Baghdad are nowhere near a pact for sharing the country’s potentially huge oil revenues, much less a working model of federal power-sharing – with the Baghdad government of Nouri al-Maliki, a Shia Islamist aligned with Iran, invariably favouring sect and faction above state and nation.

But the future of Iraq is now just part of a discussion about the possible break-up of bits of the Middle East, given new urgency by the disintegration of Syria under the pulverising effect of two years of civil war.

That conflict has prised loose the Kurdish region of northeast Syria, galvanising Turkey into making peace with its own Kurds and drawing Iraqi and Syrian Kurds into an economically dynamic Turkosphere.

That this debate is only just starting suggests just how problematic it is – and how immense its possible consequences. What is in play is the state system that succeeded the Ottoman Empire almost a century ago in Syria and Mesopotamia.

Turkey agrees energy deal with Kurdish north Iraq

Daniel Dombey        Financial Times

Turkey has defied both Washington and Baghdad by agreeing an energy deal with the north of Iraq that the US warns could further fracture the Middle Eastern state, but which Ankara sees as central to its own future.

Several Turkish officials confirm Ankara struck a secretive framework agreement earlier this year with the autonomous Kurdish Regional Government of Northern Iraq for Turkish state energy companies to take stakes in the region’s oil and gasfields. They add the deal is still so sensitive that it is unlikely to be acknowledged publicly until after a visit by prime minister Recep Tayyip Erdogan to Washington this week, a trip that takes place against a backdrop of increased tension in Iraq itself.

The agreement, together with Turkey’s political opening towards its own Kurdish population, is set to bolster Ankara’s influence in the energy-rich north of Iraq and could help it generate sufficient energy supplies to meet its ambitious growth targets. Mr Erdogan has previously described the deal as a “win win”.

Kurdish officials welcome closer relations. “Let’s be honest: Turkey is our door to the world,” said one, pointing to the KRG’s problematic ties with other neighbours. “Look at the [strained] situation with Iran, Syria, the rest of Iraq . . . Turkey is a big power in the region and, if it follows good policies like at the moment, why not be an ally?”

But the central Iraqi government in Baghdad says that without its permission the energy agreement violates the Iraqi constitution. A direct pipeline link to Turkey under the deal would give the KRG, which already has its own military force, much greater economic independence than before. At present, the only export pipelines available to the region are federally controlled and the KRG has halted exports through them because of a budget dispute with Baghdad.

Turkey: The new energy hub of the Mediterranean ?

The Middle East Magazine

Israel's apparent rapprochement with Turkey following US President Barack Obama’s visit in March is being watched for its impact on several vital political fronts affecting the region, ranging from the intensifying conflict in Syria and fears about Iran’s nuclear ambitions to the possibility of a dramatic breakthrough in efforts to resume peace talks between Israel and the Palestinians. 

But one of its most immediate effects may be to heighten Turkey’s role as the undisputed hub for the transport of oil and gas from the Eastern Mediterranean to Europe and possibly on to Asia as well. Such a development could help to transform the economic prospects of highly indebted countries such as Jordan, Cyprus, Lebanon and the Palestinian Territories of the West Bank and Gaza, as well as Israel and Turkey, and bring with it dramatic new incentives for regional co-operation rather than conflict.

Equally important is the fact that Turkey is also embarking on a major programme to invest in renewable energy sources, including solar and hydropower, that could transform its energy exports in the future, to the benefit of consumers in Europe as well as at home. That, together with the fact that, at least in the medium-term, its gas exports to Europe, particularly to its southern and eastern countries, could help to reduce their reliance on both oil and coal – that are far more polluting than gas – could spell a brighter future for the younger generations in Europe, as well as in the Eastern Mediterranean.

Israeli Prime Minister Binyamin Netanyahu’s surprise phone call to Turkish Prime Minister Recip Erdogan on 22 March – in the wake of Obama’s visit – to apologise for the military action Israel took in boarding the Gaza flotilla ship Mavi Marmara in international waters three years ago, leaving nine Turkish citizens dead, is expected to be followed by other concrete moves to restore relations between Tel Aviv and Ankara. As well as compensation for the families of the victims, these are expected to include the exchange of ambassadors and the resumption of talks on exporting Israeli gas to Turkey, which, despite its key role in the transport of oil and gas, lacks its own hydrocarbon resources.

UAE to up oil output capacity

Arab News

The UAE is seeking to increase its production capacity to 3.5 million barrels per day of crude oil to contribute to the stability of global markets, UAE Energy Minister Suhail Al-Mazrouei said.

OPEC member UAE currently pumps about 2.6 million barrels per day. The country is the fifth largest oil producing country in the team, behind Saudi Arabia, Iraq, Kuwait and Iran.

Al-Mazrouei said the rise would contribute to maintaining stability of global oil markets, but he did not disclose when they are going to increase the production.

"The recent events have proven that focusing on the security of energy is necessary in order to address natural disasters and geopolitical tensions as well as other unanticipated situations, which occur periodically in the world. That’s why the UAE undertook to construct an oil pipeline connecting Habshan-Fujairah to guarantee crude oil supplied to world market," he pointed out.

He was speaking at the opening session of the 21st Annual Middle East Petroleum and Gas conference, which began yesterday in Abu Dhabi.

Exports via Habshan-Fujairah route would allow the Gulf state to bypass the strategically vital Strait of Hormuz, which Iran has repeatedly threatened to close.

The minister added that some scenario stipulates that the global oil demand may increase by one million barrels a day until it reaches 105 million barrels a day by 2030, amid economic expansion in Asia and South America.

High quality oil in KRG holds ‘Turkish interest’

AA

Since Turkish firms have discovered high quality oil in northern Iraq, Turkey cannot remain indifferent to the oil and natural gas resources, says an executive of Genel Energy that has discovered oil in the Chia Surkh.

Turkey cannot remain indifferent to the oil and natural gas resources in northeastern Iraq, an executive of Genel Energy has said, as Genel Energy and Petoil have discovered quite high quality oil in the Chia Surkh site.

“We have got to know the region’s geological structure very well. The reserves are good. And there could be even more reserves far beyond those announced until now, both oil and natural gas,” Genel Energy’s Head of Government and Public Affairs Pars Kutay said. According to Kutay, these reserves are quite above the levels which Turkey needs. “We believe that for an energy hungry country which has limited energy resources, like Turkey, it does not seem possible to be indifferent to such huge sources just 150-200 km away from its borders” Kutay added.

Turkish Genel Energy Makes Oil Find in Kurdistan

Stanley Reed       The New York Times

LONDON — Genel Energy, the oil exploration company headed by Tony Hayward, the former chief executive of BP, announced Wednesday that it had made a significant oil find in Kurdistan.

Genel said its first well at Chia Surkh was producing almost 12,000 barrels of oil and 15 million cubic feet, or 435,000 cubic meters, of natural gas per day. “The reservoir is delivering at very high rates,” Mr. Hayward, the chief executive, said in an interview. 

He said that before the company started drilling, third-party estimates indicated that there could be about 300 million barrels of oil in the field. If so, that would be a major addition to Genel’s proven and probable reserves of about 445 million barrels. 

Genel holds 60 percent of the license area, which is in the extreme south of the Kurdish region of Iraq. The company’s stock price closed 6.4 percent higher in London on Wednesday. 

Genel is the largest producer in Kurdistan, an autonomous part of Iraq that has struck exploration deals with Chevron and Exxon Mobil in recent years. 

Turkey, Iraq warm to new pipeline as supply surges

Today's Zaman

Turkey reiterated its willingness to build a new pipeline in cooperation with energy-rich Iraq for a second time in less than a week after Iraqi Prime Minister Nouri al-Maliki made statements aimed at breaking the ice with Ankara following months of hostile rhetoric.

 

The statements come at a time of new oil discoveries in Iraq with the existing pipeline infrastructure starting to fall short of meeting overseas demand, undermining the war-torn country's potential to boost energy exports incomes. Ankara and Baghdad have been at odds over a disagreement between the two to export northern Iraq's oil via Turkish markets. The latest developments, however, enhanced the chance for reconciliation between the two with the central government in Baghdad appearing to be less skeptical about Ankara's engagement with the autonomous Kurdistan region -- or Kurdistan Regional Government (KRG) -- to the north. Resource-hungry Turkey has heavily courted Iraqi Kurds regardless of the strife with Baghdad and continues doing so.

In an op-ed article published in Washington Post to mark the 10th year of US invasion in Iraq, Maliki said Baghdad “is committed to good relations with all our neighbors … offering the hand of friendship to Jordan, Turkey, Saudi Arabia and Kuwait.” Turkish energy minister Taner Yıldız said in Ankara on Wednesday that the government “is ready to cooperate in building a new pipeline that could serve as an alternative to an existing Baghdad-controlled Kirkuk-Yumurtalık pipeline to Turkey.” Exports via that channel dried up in December -- from a peak of around 200,000 barrels per day (bpd) -- due to a row with Baghdad over payments. Last month Yıldız said the Baghdad government has offered to build a pipeline from the Iraqi oil site of Basra to Ceyhan.

Turkey says joint energy projects with Greek Cyprus, Israel possible

Bülent Keneş      Todays' 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.”

Turkey-Israel: the new Great Game

Daniel Dombey          Financial Times - BeyondBrics

There is a new Great Game afoot and it is taking place beneath the sea floor of the eastern Mediterranean.

Turkey and Israel’s tentative reconciliation is a process so fraught that US Secretary of State John Kerry appeared in Istanbul at the weekend to chivvy the two sides towards restoring full diplomatic ties. But if the steps he set out can be taken — agreeing compensation for nine Turks killed by Israeli forces in 2010, avoiding inflammatory talk, exchange of ambassadors — then a whole series of changes could be unleashed from Damascus to Brussels.


In particular, there is the question of a pipeline that could ferry newly discovered Israeli natural gas to energy-hungry Turkey — a move that would knit the two US allies closer together, despite enduring suspicions.

“It is possible that cooperation in energy between Turkey and Israel could follow an anticipated rapprochement,” said Taner Yilidz, Turkey’s energy minister, on Monday.

Turkish officials caution that bilateral talks on such cooperation can only really get going after ambassadors are exchanged — but add that business contacts on the topic are already burgeoning.