Turkish company increases share in the largest oil field of Iraq

The Turkish company Genel Enerji has acquired a 26 per cent share of Canadian Heritage Oil at the Miran oil and gas field in the Kurdish autonomy in northern Iraq, Trend reports with reference to the newspaper Hurriyet. It is reported that Genel Enerji has paid $156 million for a 26 per cent share, increasing its participation in the project to 51 per cent.

The executive director of Genel Enerji, Mehmet Sepil, said gas reserves at the field amounted to 150 billion cubic meters and is the largest gas field in Iraq. He noted that this field will be able to provide all Turkey's gas needs for six to seven years.

Earlier, a spokesman for the Iraqi Oil Ministry, Asym Jihad, told Trend that Baghdad will impose sanctions against Turkish companies if any of them sign an oil and gas agreement with the Kurdish government without the permission of the Iraqi central government.

Relations between the Kurdish administration in northern Iraq and Baghdad deteriorated in October 2011 after US-based Exxon Mobil received permission from the Kurdish authorities on the exploration and production of oil in this Iraqi region. Baghdad considered the deal illegal and warned the company that if it did not abandon the agreement with the Kurds, its deals with the central Iraqi government may be revised.

According to BP, Iraq's proven oil reserves amounted to 143.1 billion barrels as of late 2011. The country ranks third in OPEC after Saudi Arabia and Iran. Oil production in Iraq amounted to 2.798 million barrels per day in late 2011.

The Kurdish administration in northern Iraq has oil reserves of 45 billion barrels.