Turkish oil supply safe from Iraqi unrest, claims minister

Fears grow over ISIL group's hold over northern Iraqi oil facilities, but Turkey’s energy minister has denied that the country’s crude oil supply has been affected

Turkish oil supply safe from Iraqi unrest, claims minister

World Bulletin/News Desk

Turkey’s energy minister has denied that the country’s crude oil supply has been affected by unrest in Iraq.

Speaking on Friday at a conference in Istanbul, Taner Yildiz said: “Latest developments in Iraq related to energy sector do not affect Turkey’s crude oil security supply.”

Unrest in the north and west of Iraq began on Tuesday after the Islamic State of Iraq and the Levant – ISIL – seized Mosul in Nineveh province as Iraqi troops fled their posts.

Yildiz was speaking to reporters after the opening ceremony of the Fifth Energy Forum organized by Sabanci University’s Istanbul International Center for Energy and Climate.

Remarking that Turkey takes its energy from 13 different countries, Yildiz said that there has been no shipment for the last three months from the Kerkuk-Yumurtalik pipeline which is now under the militant group ISIL's control.

Around 120,000 barrels’ worth of crude oil shipments were made from northern Iraq on Thursday, said Yildiz adding: “This is Iraqi oil and Iraq’s political integrity is always important for Turkey.”

“Oil produced by Iraq is delivered by Turkey to the world market. For this reason there is no change regarding this structure,” he added.  

Yildiz refused to speculate on what kind of changes could happen in the coming days.

Speaking at the same conference, Guler Sabanci, chairperson of industrial conglomerate Sabanci Holding, said that Turkey’s energy demand was rising.

“That is why, Turkey needs timely and sufficient investments in all segments of the energy sector for meeting this growth in demand in a reliable and efficient manner,” she added.

In the last 10 years, led by the Ministry of Energy and the Energy Market Regulatory Authority, Turkey has made significant steps towards competitive and liberal energy markets, Sabanci said.

“Stable and reliable regulatory environment, realized by positive efforts and policies, have attracted important international and local companies to make serious investments in this sector,” she added.

Domestic reserves of oil and gas can only meet 10 percent of Turkey's current annual consumption. Turkey relies on costly energy imports to fuel its growing economy and is always striving to find new energy sources. Energy imports are one of the main causes of country’s US$60 billion trade deficit.

Fatih Birol, Chief Economist at the International Energy Agency, said that around US$1.6 trillion was invested in 2013 to provide consumers with energy. “Although there has been an increase on investments in the last decade, it is still for the last three years,” he added.

An independent research and policy center, Istanbul International Center for Energy and Climate claims to help the development of solutions for a sustainable energy future for the region and the world.

 

Last Mod: 13 Haziran 2014, 14:20
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