A plan to construct a new oil pipeline, with a capacity of 1 million barrels per day, between Iraqi Kurdistan and Turkey has drawn positive responses from many in the oil industry, according to a report from Investors Chronicle. Paul Atherton, finance chief of Heritage Resources, said:
"This is an excellent opportunity for Heritage to fast-track exports, and therefore monetise its gas from the Miran field."
Brian O’Cathain, chief executive of Petroceltic, said:
“Petroceltic is delighted with the agreement between Kurdistan’s Ministry of Natural Resources and the Turkish Energy Ministry to build an oil and gas pipeline taking oil from Kurdistan to Ceyhan on Turkey’s Mediterranean coast. This is a positive step towards the commercialization of oil reserves in the region and will help monetize any successful discoveries made by our exploration drilling program in 2013.“
Regarding the ongoing difference of opinion between Baghdad and Erbil over the issue of oil contracts, the article speculates that the agreement may prompt Baghdad to take a more conciliatory line over the issue. Tim Hurst-Brown, energy research analyst at Mirabaud Securities, said:
“The KRG is unlikely to go it alone, as it’s still the beneficiary of 17% of Iraq’s oil and gas receipts. “
(Source: Investors Chronicle)