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Iraq seeks US court order against Türkiye on oil export arbitration

by Daily Sabah with Reuters

ISTANBUL Apr 12, 2023 - 12:05 pm GMT+3
A general view of oil tanks at Mediterranean port of Ceyhan, some 70 km (43.5 miles) from Adana, southern Türkiye, Feb. 19, 2014. (Reuters Photo)
A general view of oil tanks at Mediterranean port of Ceyhan, some 70 km (43.5 miles) from Adana, southern Türkiye, Feb. 19, 2014. (Reuters Photo)
by Daily Sabah with Reuters Apr 12, 2023 12:05 pm

Iraq has petitioned a U.S. federal court to enforce an arbitration award against Türkiye related to Iraqi oil exports through a pipeline to a Turkish port, according to documents filed with the court.

Under last month’s International Chamber of Commerce (ICC) arbitration ruling, the court ordered Baghdad and Ankara to compensate each other on a long-standing case.

The case relates to Iraq’s claim that Türkiye violated a joint agreement by allowing the KRG to export oil through the pipeline to the Mediterranean port of Ceyhan without its consent.

Ankara said the ICC had recognized most of Türkiye’s demands. However, its Energy Ministry said the chamber ordered Iraq to compensate Türkiye for several violations concerning the case.

Iraq’s petition, filed with the U.S. District Court of the District of Columbia, requested the court “Recognize, Confirming, and Enforcing the Final Award issued by the Arbitral Tribunal.”

The arbitration ruling prompted Türkiye to halt oil flows on the pipeline to the Turkish port of Ceyhan, corresponding to about 0.5% of the global supply. Baghdad deems KRG exports via Ceyhan illegal.

Iraq’s federal government and the KRG signed a temporary agreement last week allowing northern oil exports through Türkiye to restart, but flows have not started according to shippers.

Türkiye wants another case that covers the period from 2018 resolved before reopening the pipeline, sources have previously told Reuters.

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    türkiye-iraq relations iraqi oil kurdistan regional government oil exports arbitration award
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