Yildiz announces Turkish cooperation with Venezuela on energy

Speaking after a visit to Venezuela last week, Energy Minister Taner Yildiz says Turkey is planning an oil deal with Venezuela in return for housing projects in the Latin American country. Yildiz also says UN sanctions have not affected Turkey's oil and gas cooperation agreements with Iran. Turkey is considering greater involvement in Venezuela's energy sector as part of its quest for cheaper oil imports, he said. "Venezuela offered Turkey two oil fields in return for its cooperation in a series of construction projects. They are also positive about selling oil products to Turkey," Yildiz told reporters. He said Turkey could possibly invest up to $2.4 billion in Venezuela in exchange for its oil products. While Turkey would undertake transportation of the products, Venezuela has said it wants to build a series of depots in Turkey capable of accommodating up to 4 million barrels of oil, Yildiz said. A technical delegation is set to visit Venezuela next month to discuss the details of the construction projects, set to be carried out by Turkey's Housing Development Administration (TOKI). Venezuelan President Hugo Chavez also wants to visit Turkey, Yildiz said. UN sanctions haven't affected Turkey's oil and gas cooperation agreements with Iran, he stated, adding that UN decisions are binding on all members, including Turkey, but unilateral US sanctions on Iran are not. "Of course we can find solutions through mutual discussion of those sanctions," he said. "Turkey can't be indifferent to Iran's resources. We buy natural gas from five countries, one of them is Iran." Turkey annulled the three-phase South Pars gas field project with Iran due to feasibility problems, Yildiz said, adding that a production-sharing natural gas contract with Iran is technically impossible, since the Iranian Constitution restricts such agreements. But Turkey wants to cooperate with Iran in other natural gas and oil projects through the private sector, he said. "Iran has offered 4 to 5 fields," he added. "We will call on Turkey's private sector to invest in them, which will require an investment of approximately $400-$500 million." While Turkey has been discussing building a nuclear power plant exclusively with Japan, France had also approached Turkey with an offer but negotiations had not yet begun, Yildiz said. However, any such discussion with France would include political considerations, he said, adding, "When considering such an offer, it is impossible to ignore France's resistance to Turkey's joining the European Union." Turkey could expect concessions on its EU bid if it were to go ahead with such a project with France, he said, calling it "our right."