Turkey to resume operations on Iraq-Turkey crude oil pipeline
Turkey will restart operations this week on a crude oil pipeline from Iraq that has been suspended for about six months, Turkey's Energy Minister Alparslan Bayraktar said on Monday. The pipeline had been suspended for approximately six months following an arbitration ruling that ordered Turkey to compensate Iraq for unauthorized exports dating back to 2014-2018.
Speaking at the ADIPEC (Abu Dhabi International Petroleum Exhibition & Conference) in Abu Dhabi, Minister Bayraktar shared the news of the pipeline's impending restart. "Within this week, we will start operating the Iraq-Turkey pipeline after resuming operations. It will be able to supply half a million barrels, almost, to global oil markets," he stated.
Turkey has long served as a vital transit route for oil and gas, and the reopening of the pipeline is expected to have a significant impact on global oil supply.
The suspension of oil flows in the Iraq-Turkey pipeline began six months ago after an arbitration ruling by the International Chamber of Commerce (ICC) mandated that Turkey pay Baghdad damages for unauthorised exports that took place between 2014 and 2018.
Following the arbitration decision, Turkey initiated maintenance work on the pipeline, which plays a crucial role in providing approximately 0.5% of the world's crude oil supply.
To navigate the dispute, Baghdad and Ankara agreed to wait until a comprehensive maintenance assessment of the pipeline, which passes through a seismic zone, was completed before resuming oil flows. Simultaneously, the two nations have continued to engage in a legal battle concerning the arbitration awards.
Last month, Minister Bayraktar had hinted at the possibility of Turkey pursuing legal action against Iraq, as Iraq maintained an outstanding enforcement case against Turkey related to the arbitration ruling.
The resumption of operations on the Iraq-Turkey crude oil pipeline marks a significant development in the energy landscape and is expected to bolster global oil markets. It also underscores the complex dynamics of international energy disputes and the critical role that arbitration plays in resolving such issues.