Arbil natural gas ‘to lower prices’

ANKARA - Anatolia News Agency

Energy prices may fall in Turkey with the contribution of northern Iraqi and Mediterranean gas, Mehmet Sepil, the chief executive officer of Genel Energy has said. The company has heavily invested in oil and gas fields in the region under the control of the Kurdistan Regional Government (KRG) in Iraq.

“Turkey needs [more] energy, particularly natural gas. Prices will be to the benefit of end users if Turkey puts the gas from northern Iraq and the Mediterranean to use,” he said in his speech at the fifth International Energy Congress and Fair.

Turkey should use every option to secure energy supplies as the country is unfortunate in terms of oil and natural gas reserves, he said, adding that bordering country Iraq should be very well analyzed by Turkish firms and the Turkish government itself.

“The cost of oil exploration at sea is between $30 and $60 depending on the depth. But it is only $5 to extract oil in Iraq. That’s why all the oil majors are interested in Iraq. The probability of finding oil in Iraq is higher than any other place in the world. The probability to find oil in country, which is known to have reserves, is about 20 to 25 percent, while it is nearly 80 percent in Iraq,” he said.

Turkey’s natural gas needs for the next 50 years can be supplied from northern Iraq, according to Sepil.