Turkey says Iraq was ordered to pay compensation to Ankara in arbitration case (updated)

Gulf Keystone Petroleum

28/03/2023 16:18

(Adds detail, background)
    By Can Sezer
       ANKARA, March 28 (Reuters) - Turkey's Energy Ministry
said on Tuesday that Iraq had been ordered by the International
Chamber of Commerce (ICC) to pay compensation to Ankara in a
longstanding arbitration case related to oil exports from
northern Iraq via Turkey.
    The Turkish energy ministry statement was released after
Iraq's oil ministry said on Saturday the ICC had ruled in its
favour in the case. The Turkish statement said the ICC had
recognised a majority of Turkey's demands, without saying how
much compensation Iraq had been ordered to pay.
    The case relates to Iraq's claim that Turkey violated a
joint agreement by allowing the Kurdistan Regional Government
(KRG) to export oil through a pipeline to the Turkish port of
Ceyhan in 2014.
    Baghdad deems KRG exports via Ceyhan port as illegal.
    Iraq on Saturday halted crude exports of 450,000 barrels per
day (bpd) from the semi-autonomous Kurdistan region and northern
Kirkuk.
    The ICC ruled in favour of Iraq on Thursday in the
arbitration case and ordered Turkey to pay Baghdad around $1.5
billion before interest, Reuters reported on Saturday.
    In its first official statement on the issue, Turkish energy
ministry said that the ICC overruled four out of five demands
from Iraq.
    "(The ICC) ordered Iraq to pay a compensation to Turkey,"
the ministry said, without revealing the amount of compensation.
    Around 450,000 barrels per day (bpd) of crude exports, or
half a percent of global oil supply, to Turkey from the
semi-autonomous Kurdistan region and northern Kirkuk fields were
halted following the verdict.
    "This case is in fact a reflection of disagreement between
Iraq's central government and Iraq's Kurdish Regional
Administration," the Turkish ministry said.
    "Turkey is ready to fulfil the requirements of international
law, and to contribute to finding a permanent solution between
parties of disagreement," it added.
    Oil firms in the region have been left in limbo as the
pipeline stoppage is set to continue until Ankara, Baghdad and
the KRG find a settlement to resume exports.

 (Writing by Huseyin Hayatsever; Editing by Tom Perry and
Jonathan Oatis)
 ((Huseyin.Hayatsever@reuters.com;))