Iraq and Turkey officials will meet in Baghdad for discussion regarding the resumption of the Iraq-Turkey Oil Pipeline, with negotiations headlined by the International Chamber of Commerce (ICC). The two parties reportedly agree on the necessity to resume oil exports as soon as possible.
Jun 16, 2023
Iraq and Turkey will reportedly be in talks regarding the restarting of the 970 km, 450,000 bpd Iraq-Turkey Oil Pipeline, which was shut down last March after Turkey disputed an arbitration ruling by the International Chamber of Commerce (ICC) in favor of Iraq. The ICC will headline negotiations between Iraq and Turkey in Baghdad. Mr. Basim Mohammed Khudair, the Undersecretary of the Iraqi Oil Minister stated that the two parties agree on the necessity to resume oil exports as soon as possible, explaining that Iraq is ready to pump 500,000 barrels per day in case both parties agree on the resumption of oil exports.
The ICC obliged Turkey to pay Baghdad a compensation amount of USD 1.5 billion for the damages caused by the Kurdistan Regional Government’s (KRG) oil export without permission from the federal government in Baghdad between 2014 and 2018. The 80 days halt in operations has reportedly cost the Kurdistan Regional Government (KRG) over USD 2 billion. The crude oil pipeline runs from Kirkuk in the semi-autonomous region of Kurdistan in northern Iraq to the Turkish port of Ceyhan, and the KRG began exporting crude independently from Iraq’s federal government in 2013, deemed illegal by Baghdad.