ANKARA
Turkey finds it feasible and possible to participate in Russia's South Stream pipeline project, if Moscow makes official offer, said Turkish Energy Minister Taner Yildiz on Thursday.
If Russia makes an official offer, we find it feasible and possible, said Yildiz at the fourth Annual Congress of Caucasus Universities Association titled "Role of Energy in Caucasia's Future" in Ankara.
Russian President Vladimir Putin recently announced that Moscow would choose a country not belonging to the European Union for passage of the South Stream pipeline, following the EU's reactions to the annexation of Crimea by Russia.
The South Stream project, which is expected to be operational by 2018, was designed to ship Russia's natural gas to Europe through Bulgaria, Greece, Italy and Austria.
However, Brussels has put the project on hold as the EU seeks to decrease its reliance on Russian gas.
Kurdish oil continues to flow
Asked about the identity of the buyers of northern Iraqi oil, which has started to be exported from the southeastern Turkish port of Ceyhan last week, Yildiz said, "We don't know who buys the oil since the oil belongs to Iraq, and Turkey only manages the transportation part, not the sale."
Yildiz mentioned that 100,000 to 120,000 barrels of northern Iraqi oil per day were continuing to flow into Ceyhan before being transferred to the Mediterranean market.
The oil had been stored in Ceyhan for the last six months in line with an agreement signed between Turkey and the Kurdish Regional Government in northern Iraq as the central government in Baghdad opposed its sale, claiming that would violate the country’s constitution.
While negotiations on a deal between the Irbil and Baghdad authorities were taking place, almost 2.5 million barrels of oil accumulated in Ceyhan.
Last Thursday, Yildiz announced that the one million barrels of the Ceyhan oil had begun to be sold to Mediterranean market.
It remains unclear whether an agreement was actually reached between Irbil and Baghdad.
Oil and gas exploration in Turkey will continue
Turkey spent around one billion US dollars in oil and gas exploration in 2013, Turkish Energy Minister Taner Yildiz said on Thursday.
Oil exploration will continue, said Yildiz adding that he believes oil will be found.
Speaking during a meeting organized by Petroleum Platform Association (PETFORM), in Ankara, Yildiz said; “we are determined to provide investment incentives for the oil and gas sector. Oil and gas imports are far higher than we anticipated and we target a level of oil and gas production that may satisfy half of our annual consumption”.
Domestic reserves of oil and gas can only meet ten 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.
Turkey produced 26 million tons of crude oil and 8.4 billion cubic meters of natural gas during a 12-year-period, said Energy Minister Yildiz. “We must stubbornly keep on exploring on and off-shore.”
Turkey’s state owned TPAO, the company responsible for oil and gas exploration activities, invests heavily in local fields and exploration projects in Middle East, South America and Black Sea region. The fields in southeastern Turkey are the main source for oil and gas production.
The minister said a new deal will be signed in Istanbul for Caucasian resources, but refused to give further details on the deal, raising expectations of an energy deal for the region’s hydrocarbon riches, which will help Turkey in its bid to become an energy hub.
“We are experiencing a new era that Turkey will benefit from its geostrategic advantage to transport oil and gas.”
The energy ministry will begin awarding the licenses for oil and gas exploration on June 11, said Yildiz.
Turkey sees US$ 7.5 billion of investment in the oil and gas sector with 58 operating companies in 2014, whereas it was around 20 companies with an investment totaling to US$ 42 million in 2002.
englishnews@aa.com.tr
