Turkey’s runoff election is paralyzing key oil exports from northern Iraq
A satellite image showing the port of Ceyhan centred on August 18, 2015 in Turkey.
Gallo Images | Gallo Images | Getty Images
Turkey’s runoff election is compounding delays to restart roughly 450,000 barrels per day of Iraqi crude oil exports, as Ankara studies its relationship with Baghdad, analysts and market sources told CNBC.
Oil typically flows through Turkey from both the Iraqi state and the semi-autonomous Kurdistan Regional Government (KRG). More specifically, this Kirkuk crude flows down the Iraq-Turkey Pipeline linking the north of the Gulf country with Turkey’s Ceyhan port in the Mediterranean. But the flows have been paralyzed since March 25 by a legal dispute involving federal Iraq, the KRG and Turkey.
Resolution pends on the result of a second presidential vote this weekend, but a prolonged halt could reduce Iraqi crude production.
The KRG had previously trucked its crude exports across borders, until it linked its major oil-producing fields to the Iraq-Turkey pipeline and began shipping crude in 2014. Federal Baghdad denounced Erbil’s independent crude sales as illegal, threatening to ban customers of such supplies from purchasing Iraq’s larger Basra crude volumes.
After a nine-year suit, the International Chamber of Commerce’s Court of Arbitration in Paris found that Turkey violated the 1973 version of a pipeline transit agreement between Baghdad and Ankara over 2014-2018. Turkey was ordered to pay Iraq roughly $1.5 billion in damages, according to Reuters. A second arbitration suit covering 2018 to date is still ongoing.
The ICC verdict followed a domestic win for Baghdad, after Iraq’s federal court in February 2022 pronounced the KRG’s oil and gas legislation unconstitutional and invalidated its contracts with foreign firms. This decision led to U.S. companies deciding to exit contracts in Kurdistan and deterred some KRG oil buyers from further purchases.
Iraq’s oil minister Hayan Abdul-Ghani on May 23 said that Baghdad has informed Turkey it is able to restart flows through Ceyhan and awaits Ankara’s response.
“Our colleagues in Turkey said there are some evaluative issues that they have to take into account. And that resulted from the earthquake,” he said, noting that an Iraqi delegation will be sent at an unspecified time to Turkey to discuss the restart.
Kirkuk crude is exported from the Botas terminal at Ceyhan in southern Turkey, separate from Azeri crude flows shipped out from the nearby Baku-Tblisi-Ceyhan port terminal. Botas resumed loadings the day after the devastating earthquake of Feb. 6 that killed at least a combined 50,000 people in Turkey and Syria, according to the U.N. The BTC terminal suffered a longer outage.
Several trade, shipping and oil producing sources — who could only comment anonymously because of contractual obligations — told CNBC that, following a request from Baghdad, Ankara was widely expected to resume Kirkuk crude exports from Ceyhan on May 13 — a day before presidential elections in Turkey, whose inconclusive first round on May 14 stymied the oil’s resumption.
Presidential purview
The sources stressed that Turkish authorities are loathe to take responsibility for the restart, while incumbent President Recep Tayyip Erdogan fights primary rival Kemal Kilicdaroglu to prolong his roughly two-decade rule.
“The main issue with the resumption of the oil through Ceyhan is the elections ongoing in Turkey. Another obstacle in front of the resumption of oil is the ongoing case at ICC in Paris against Turkey by Baghdad from 2018 until now. Ankara asks Baghdad to drop this case, but Baghdad has yet to do so,” political analyst and former Kurdistan official Lawk Ghafuri told CNBC.
“The ruling party in Turkey [Erdogan’s AKP] wants to settle the elections and then deal with KRG’s oil with Baghdad.”
Other analysts further emphasized Turkey’s priority to avoid further legal disputes by insisting on a strict, clear agreement on the legality of oil exports between Baghdad and Erbil. Current deals between the two counterparties are political accords, rather than legislation.
“There are still lots of technicalities that need to be sorted out between the KRG and Baghdad. Although there has been an initial deal, the details have not been fleshed out in terms of how oil [is] to be exported and which side has control over the revenues,” Yerevan Saeed, research associate at the Arab Gulf Institute in Washington, told CNBC by email.
In addition to deciding marketing distribution, Baghdad and Kurdistan might also have to rework the agreements under which foreign firms have prepaid sums to Erbil in exchange for oil volumes, as well as the reimbursement contracts for foreign producers of Kurdish oil, market sources say.
Saeed noted Ankara may stretch negotiations with Baghdad to cover water resources from the Euphrates River and Turkey’s military presence in Kurdistan and Sinjar.
Bilal Wahab, Wagner fellow at the Washington Institute for Near East Policy, agreed that control of the Kurdish oil export flows arms Turkey with the leverage to ask Baghdad to drop its fine and second arbitration suit, as well as redefine the scope of Ankara’s business relationship with Iraq.
“This arbitration award is forcing a decision on Ankara: should they continue doing business with Kurdistan, where this has led to legal trouble with federal Iraq, or should they use this as a bird in hand to segue into getting the chance to do business in Iraq? All in all, by shutting down the pipeline, Turkey is not losing a lot, maybe the transit fee,” he told CNBC by phone, referring to Kurdistan’s payment to transport crude along the Iraq-Turkey pipeline.
Winner talks all
An Erdogan loss in the presidential battle could prolong the oil stalemate, traders warn, with Kilicdaroglu likely to require independent negotiations with Iraq — in a diplomatic point unlikely to enjoy pride of place on the new leader’s agenda.
Third-party candidate Sinan Ogan’s Monday endorsement of Erdogan has strengthened Erdogan’s position as Turks head to the polls.
Domestically, Erdogan has enjoyed a tumultuous relationship with Turkey’s largest ethnic minority, which typically accounts for 15-20% of the Turkish population. While Erdogan has had frequent rapprochement with KRG Prime Minister Masrour Barzani, Wahab signals Turkey could still prioritize securing benefits from the oil export stalemate.
“I don’t think a victorious Erdogan would have any qualms about using the KRG as a leverage to get a good deal out of Baghdad: favourable terms for doing business in Iraq, dropping the fine that Turkey has to pay, or dropping some of the demands that Iraq has with regard to water [from the Euphrates] and Turkish military presence in Iraq,” he said.
The current EV era is ripe with revered classic car designs and iconic nameplates that are being reborn as battery-powered rides – and the success of cars the Renault 5 proves it can be a winning formula. Today, I’m suggesting another 1980s classic that deserves a modern electric update: the Buick Grand National.
I want to start this off by saying: yes, I know there was never a Buick Electra Grand National. The storied, turbocharged Buick GNX of yore was based on Buick’s Regal model, not the more ponderous Electra – but this is my article, and I think the “Electra” nameplate belongs on a US-market EV significantly sooner than later.
As for the “Grand National” part, the timeslip will solve that.
Why it would work
Thanks to the nearly $300,000 Cadillac CELESTIQ ultra-luxury car, we’ve already seen GM put a low-slung sedan body on its EV skateboard. That car uses a pair of electric motors, one on each axle, for a 655 hp all-wheel driving experience capable of launching the big sedan from 0-60 mph in just 3.7 seconds.
Putting those same motors under a shorter, lighter two-door sedan body would put my proposed all-electric Buick Electra at just under 6,000 lbs., and make the new car more than quick enough to earn the Grand National badge with a 3.5-second dash to 60 on its way to an 11.25 (ish) second quarter mile at about 120 mph. As for cost? You could almost name your price, but keeping it just under the Chevy Corvette’s $74,780 base price would make it a winner.
Limit production to 1987 units, make them order-only so dealers can’t ruin the party with obscene markups, and Buick can watch the money roll in … possibly.
You guys are smart, so I’m sure you’ll be able to find all the problems with this particular take – and I can’t wait to hear them! Should it be RWD only? A plug-in hybrid? Scroll on down to the comments and let me know what you think it would take to make a battery-powered Buick GNX revival make sense.
Original content from Electrek.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
If you’ve been dreaming about hitting the open road on two wheels with serious power, comfort, and style, the Cikada Touring e-Bike might just be your perfect ride. Designed for modern explorers who want adventure without compromise, this premium e-bike blends high-end performance with thoughtful design.
Smooth power that takes you everywhere
At the heart of the Cikada Touring e-Bike is a BaFang M410 350W motor that packs a punch with 80Nm of torque and provides assisted speed of up to 20 mph.
Mounted at the bike’s center, the motor’s placement creates ideal weight distribution, boosting traction and handling on everything from steep climbs to winding trails. Its compact design integrates seamlessly into the frame, keeping the center of gravity low for a more stable, confident ride that feels naturally in sync with your movements.
You’ll climb hills like a pro and accelerate with ease. It’s efficient, reliable, and perfect for riders who want consistent power for touring, commuting, or weekend adventures. Plus, it’s got walk assistance for when you’re not riding.
Go the distance
Worried about running out of juice? Don’t be. The 720Wh LG 21700 removable battery delivers a range of up to 75 miles (121 km) on a single charge. That’s plenty of power for long scenic routes, daily commutes, or even multi-day rides when you want to explore more and charge less. And when it’s time to juice up again, it only takes six to eight hours to reach full charge.
Built for comfort and confidence
No matter where the road takes you, the Cikada Touring e-Bike is ready. Its 27.5 x 2.8-inch Kenda anti-puncture tires with reflector strips keep you rolling smoothly and safely, while the suspension fork absorbs bumps across various terrains. Add an ergonomic design and 6061 aluminum frame, and you’ve got a bike that feels stable, balanced, and built to last.
Hydraulic disc brakes give you confident stopping power, and with 8-speed Microshift gearing, you’ll have full control over every incline and descent.
Everything you need, built in
The Cikada Touring e-Bike comes fully equipped for adventure. With integrated rear rack, lights, and mudguards, it’s road-ready right out of the box. No extra accessories needed – just hop on and ride.
Plus, the integrated Bafang system means your motor, sensor, and display all work seamlessly together for a smooth, intuitive riding experience.
Take it to the next level with the Cikada app
Plan, manage, and customize your next adventure with the Cikada app. Available on Android and iOS, it pairs your smartphone to your e-bike via Bluetooth so you can dive into real-time performance data, service tools, and smart ride features that make every journey smoother and more connected. You can track your progress, analyze past rides, fine-tune your ride settings, check your bike’s status, and even share your location or ride stats with the Cikada community, all from one easy-to-use dashboard.
Why riders love it
The Cikada Touring e-Bike is more than just a good-looking ride. It’s a thoughtful blend of power, endurance, and comfort – ideal for riders who want to explore new places, tackle longer distances, or simply enjoy every mile with confidence.
Plus, Cikada offers a 30-day trial period on all its e-Bikes. If you’re not happy, Cikada refunds your purchase, no questions asked.
Ready to tour farther, climb higher, and ride in style? Check out the premium Cikada Touring e-Bike and start your next great adventure.
Follow Cikada on Facebook and Instagram.
FTC: We use income earning auto affiliate links. More.
It looks like retail giant Target has been reading our posts about the Chevy Brightdrop being the best deal in the commercial EV business, because the company has picked GM’s electric box van to pilot a new, dedicated last-mile delivery service in Dallas-Fort Worth.
The new pilot program will see 50 new Chevy Brightdrop vans deployed in a collaboration between Target, Circuit EV Solutions, and a last-mile logistics startup called the Frontdoor Collective that relies on its franchise owners to make its deliveries instead of outsourcing that delivery work to independent contract carriers gig workers.
“We’re building the infrastructure backbone that makes high-volume electric delivery possible nationwide,” said Adam Greenberg, CEO at Circuit EV Solutions. “By ensuring fleets have the charging support they need, we’re removing the final barrier to true EV scalability in last-mile logistics.”
Circuit EV Solutions provides the backbone of the highly-visible Target collaboration, delivering the fleet management and charging software to monitors vehicle health, schedule depot charging, and ensure that every Chevy Brightdrop van leaves the hub with an optimally full battery and a fully optimized delivery route, eliminating range anxiety among the vans’ operators.
Chevy Brightdrop
Chevrolet Brightbrop electric vans were designed with last-mile delivery efforts in mind, and offers a best-in-class 272 miles of combined range, large, squared-off cargo hold for maximum capacity, and lower maintenance and fuel costs than the ICE-powered competition.
For independent delivery service providers, that’s a killer combination that can help translate to higher margins and more time back in their busy days to spend with their families – which is something I think we can all get behind.
Click here to find out if your business can take advantage of special tax incentives with the purchase of a new electric van, and click the link, below, to check out a new Brightdrop van near you.
SOURCE | IMAGES: Circuit EV, via Freightwaves.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports2 years agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports3 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment1 year agoHere are the best electric bikes you can buy at every price level in October 2024