Iraq and Turkey have officially begun their negotiations to reach a framework agreement for cooperation in the oil and gas sector. This action has gained high importance due to the severe reduction in Iraq's oil exports caused by disruptions from the closure of the Strait of Hormuz during the war with Iran.
Details of the Negotiations and Officials' Meeting
In these negotiations, Basim Mohammed Khudair, Iraq's Minister of Oil, and Alparslan Bayraktar, Turkey's Minister of Energy and Natural Resources, met in Ankara. A statement from the Iraqi Ministry of Oil indicates that in this meeting, a proposed roadmap for strengthening bilateral cooperation in the development of oil and gas sector infrastructure, the petrochemical industry, and also oil, gas, and energy trade was discussed and reviewed.
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A one-year agreement was also signed in August between Turkey's state-owned company "BOTAS" and Iraq's state oil companies, namely "SOMO" and "NOC", to increase crude oil flow through the Kirkuk-Ceyhan pipeline. This agreement was made following efforts to increase Iraq's oil exports abroad and to circumvent existing obstacles.
Analysis and Implications of Cooperation
The effort to establish a deeper strategic partnership between Iraq and Turkey comes in response to severe disruptions in Iraq's oil exports; exports that have significantly decreased after the closure of the Strait of Hormuz. The two countries are now turning to alternative transit routes to more effectively influence the oil market.
Ali Al-Zaydi, the Prime Minister of Iraq, announced in August that the two countries are working to finalize a framework agreement that encompasses various areas such as oil, electricity, and water resources. This agreement could lead to increased economic and commercial cooperation between the two countries and is particularly significant at a time when Iraq is seeking to boost its oil exports.
Overall, the recent negotiations between Iraq and Turkey can be seen as a strategic opportunity for both countries to achieve their energy goals through strengthening bilateral cooperation and overcoming existing obstacles.
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