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Problem in the Oil Flow to Iraq
Hasan Selim Ozertem
USAK Center for Energy Security Studies

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Tuesday, 30 January 2007

 

           As well as being the neighbor of Iraq, Turkey is also an important logistics center for this country. There is a process of reconstruction in Iraq -especially in the northern part of it- and required energy, oil and construction materials go from the biggest supplier of the region; Turkey. However, this weekend the relations between these two countries have been disrupted due to bureaucratic problems that emerge in the transportation of oil to the region.


Turkey exported 2,2 million tons of refined oil products and 435,5 thousand tons of LPG to Iraq in 2005, which equals to 2,2 billion dollars. However, this flow has halted since Friday due to diplomatic problems between Iraq and Turkey. It is claimed that SOMO (State Oil Marketing Organization) sent letters to oil exporter companies in Turkey and said that they should negotiate with the local administration of Northern Iraq. After this Minister of Trade Kursad Tuzmen said that this is an unacceptable demand and the ones who want to test Turkey would pay for this. Tuzmen states that the share of Turkey’s foreign trade with Iraq has only 1,2% in total trade volume and in a way mentions that Iraq will be the negatively affected party from this problem; not Turkey


It is reported that fifteen hundred tankers are waiting in front of the Habur border gate and also the transportation from the Mersin Harbour is disrupted. Moreover, Iraq cut its meat export from Turkey. Tuzmen says that only the central government is authorized in oil trade in Iraq not the local administration of Northern Iraq. However, we cannot find anybody to talk about this when we make telephone calls. The tension increases, but in the basis, the problem is kind of diplomatic.


Indeed, it is really important to try to find a solution trough diplomatic channel. The tension between Iraq and Turkey would damage both of the parties in the long term. It is a known fact that Iraq needs Turkey in this region for its crucial role as a logistics center. Turkey’s experience and advantage in construction sector maintains a rapid and cheap way for Iraq’s reconstruction. On the other hand, when the stability is maintained the biggest problem will be the available and secure pipeline routes for Iraqi oil and in this regard Turkey can also play a significant role. In the long term, both of the countries have reciprocal interests and it would be the best to approach in a more rational way for the solution of this temporary problem.

Some information was retrieved from Radikal, Hurriyet and Zaman Newspaper.


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Journal of Turkish Weekly (JTW)
USAK House,
Ayten Sok. No:21
Mebusevleri, Tandogan, Ankara, Turkey