Turkey Resolves Energy Crisis with Baghdad

By Mehmet Nayir for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Turkey’s energy diplomacy has borne results. The oil crisis was resolved when Baghdad was offered a measurement station and revenue payment guarantees. In this regard, a trilateral Baghdad-Ankara-Erbil mechanism will be set up.

Turkish Energy Minister Taner Yildiz (pictured) told Baghdad officials to be at ease because the process was transparent. The Baghdad government then validated the agreements between Turkey and northern Iraq and sat at the table.

Worries eliminated

In the talks, Turkey took a clear stand about the measurement station, which will address Baghdad’s main concerns. Prime Minister Recep Tayyip Erdogan gave instructions to eliminate Baghdad’s biggest concern before starting oil exports from northern Iraq and asked for the completion of the measurement station at the border for oil and natural gas exports.

Ankara emphasized that oil revenues would be shared according to the provisions of the Iraqi constitution. Baghdad was told that they would know the exact amount of oil exported. Ankara reiterated its decision to deposit oil revenues in a Turkish state bank and then share them under the supervision of an Iraqi government auditor.

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