Press "Enter" to skip to content

Baghdad ordered to compensate Türkiye for crude exports from northern Iraq

The International Chamber of Commerce (ICC) ordered Iraq to pay compensation to Türkiye for several violations concerning a longstanding international arbitration case regarding crude oil exports from Iraq’s Kurdish Regional Government (KRG), Türkiye’s Energy Ministry said Tuesday in a statement.

The statement came after reports claimed that Iraq halted crude exports Saturday from the KRG’s northern Kirkuk fields after Iraq won an arbitration case against Türkiye.

“At this stage of the (arbitration) case, members of the Arbitral Tribunal have rejected four of the five claims Iraq has put forward,” the ministry said, adding that the majority of Türkiye’s demands were accepted.

“They ordered Iraq to pay compensation to Türkiye for these violations,” it said.

The ministry said the issue was “a reflection of a years-long dispute” between the Iraqi central government and KRG about sharing oil revenues.

“Türkiye has always respected the unity and territorial integrity of Iraq and has been working relentlessly for the political and economic stability of both Iraq and the KRG government,” it said.

Despite instability in the region, the ministry said Türkiye has undertaken billions of dollars in expenditures to keep the Iraq-Türkiye Oil Pipeline System operational since 1973, which also helped maintain stability in global oil markets.

“It has conducted intensive diplomacy with both parties and relevant countries to arrive at an amicable settlement of the dispute,” it said.

The ministry expressed readiness to fulfill the requirements of international law and to make any contribution to the permanent settlement of the conflict between Iraq’s central government and the KRG.

With its proven oil reserves of approximately 145 billion barrels, Iraq is the fifth-largest producer in the world and the second-biggest OPEC producer with a daily production of more than 4.5 million barrels. The country has been in a deadlock for years due to the misuse of resources and the unfair distribution of oil revenues.

More from EconomyMore posts in Economy »

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *