By John Lee.
Turkish prime minister has said that state-owned Turkiye Petrolleri AO (TPAO) is has reached an agreement with the Kurdistan Regional Government (KRG) and ExxonMobil to carry out oil exploration in northern Iraq.
Tayyip Erdoğan (pictured) told reporters:
"Countries from various parts of the world are taking steps to explore and produce oil in different parts of Iraq, and then deliver it to world oil markets.
"There's nothing more normal, more natural than Turkey, which provides all kinds of support and aid to its next-door neighbor, to take a step that is based on mutual benefit."
An Ankara-based source told Hurriyet Daily News that TPAO will take equity stakes in a partnership with Exxon and KRG, and would become part of the production-sharing agreement.
Prime Minister Tayyip Erdoğan said that details would be clearer after his visit to the US - he is due to meet U.S. President Barack Obama on Thursday.
(Sources: Hurriyet Daily News, Reuters, Dow Jones)