Kurdistan has begun flowing crude oil via a new pipeline to Turkey – but Turkish authorities insist it will not progress further without the go-ahead from Iraq.
The Kurdish regional government, which has been at odds with Iraq over oil production from the semi-autonomous region, has started flowing oil through the pipeline to the Turkish export hub of Ceyhan.
Oil is flowing at a rate of around 300,000 barrels per day, with plans to increase that by 100,000bod, after Turkey signed a multi-billion dollar deal last year with the Kurdish authorities.
The deal would allow the oil resources of the region to be exported via Turkey rather than through Iraq, infuriating the Iraqi leadership, but now Turkey says it will not allow the oil to go further than storage tanks at Ceyhan without the support of Baghdad.
“It is being stored,” Turkish energy minister Taner Yildiz said.
“It will not be exported without the consent of the Iraqi government.”
Yildiz added he hoped a deal to allow exports to world markets would be secured later this month.