Turkish firm ups share in oil field in Iraq’s Kurdish autonomy

Turkish oil company Genel Enerji purchased another 21-percent stake in Bina Bavi oil field in the Kurdish Autonomy of Iraq, Turkish news agency The Lira reported on Tuesday. Cost of the deal is $240 million.

It is reported that before the company already acquired 23-percent stake in this field.

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

The 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 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. According to BP, 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.