Iraq wins oil arbitration against Turkey

Iraq has won an ongoing arbitration case over the export of crude oil from the semi-autonomous region of Kurdistan. This reports Bloomberg. Turkey has already informed Iraq that it will honor the deal and not export a drop of crude oil from Kurdistan without Iraq’s explicit consent.

The case originally dates back to 2014, when Baghdad believed Turkey breached a 1973 deal with Iraq by allowing the Kurdish regional government to export crude oil through a pipeline to the Turkish port of Ceyhan without it. Iraq’s consent.

mechanisms

It is now up to the Iraqi oil ministry to “discuss mechanisms” to resume Iraqi oil exports from the port of Ceyhan. The Iraqi government wants to settle this with Turkey, so that exports are guaranteed and international commitments are effectively respected, according to a press release.

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More than one million barrels per day passed through the Ceyhan terminal in January, representing about 1% of global supply. Baghdad sends 75,000 barrels a day to Ceyhan, while the Kurdish regional government sends over 400,000 barrels a day.