Iraqi Oil Minister Hayan Abdel-Ghani travels to Ankara to discuss the resumption of oil exports via Ceyhan. The talks are aimed at resolving suspension issues following an arbitration ruling in 2023. Iraq disputes Turkey’s role in Kurdish exports.
Iraqi oil minister discusses resumption of oil exports in Ankara, Ceyhan at heart of discussions
The Iraqi Oil Minister, Hayan Abdel-Ghani, has returned to the Turkish capital, Ankara. Its aim is to discuss a number of issues, including the resumption of oil exports via the Ceyhan terminal. An inside source in the ministerial office was the source of this information, and reported it to Reuters on Monday. During his visit, the Iraqi oil minister will meet his Turkish counterpart. They will discuss energy issues, in particular the revival of oil exports from northern Iraq via the Turkish port of Ceyhan. These words were spoken by an oil industry official. In March 2023, Turkey suspended Iraq’s oil exports, totaling 450,000 barrels per day (b/d), following an arbitration ruling by the International Chamber of Commerce (ICC). This decision concerned exports via the northern Iraq-Turkey pipeline.
Dispute over Iraqi oil exports: Turkey challenges ICC and breaches agreement
In 2014, Iraq lodged a complaint with the ICC in Paris. The aim was to challenge Turkey’s role in oil exports from Iraq’s Kurdish region. This challenge was motivated by the lack of consent from the federal government in Baghdad. The Iraqi federal government claims that the State Oil Corporation (SOMO) is the only entity authorized to manage crude oil exports via Ceyhan. Ankara and Turkey’s state-owned energy company, BOTAS, have thus violated the terms of an Iraq-Turkey pipeline agreement signed in 1973. Iraq claims that this happened while transporting, storing and loading oil from Kurdistan onto tankers in Ceyhan. This action would have been taken without Baghdad’s approval.
Turkish-Iraqi negotiations for arbitration damages and solutions to oil export blockages
Turkey expresses its desire to negotiate the amount of damages it must pay after the arbitration decision. It also aims to obtain clarification on other arbitration disputes currently underway.
“The Iraqi oil minister is in Turkey to discuss the obstacles hindering the resumption of oil exports and possible solutions to persistent problems,” said an oil ministry official close to northern Iraq’s oil export operations.
The International Chamber of Commerce (ICC) has issued an order against Turkey. This order requires the payment of approximately $1.5 billion to Baghdad. The reason is unauthorized exports by the Kurdistan Regional Government between 2014 and 2018.
“The damages ordered by the arbitration decision and the arbitration disputes still open against Ankara will be at the heart of the discussions”, the official concluded.
