Turkey’s Energy Minister, Alparslan Bayraktar, has announced that the northern oil export route from Iraq through Turkey is nearing readiness to recommence operations. The pipeline underwent maintenance and repairs due to flood damage, and it is now in the final stages of preparation for operation.

The decision to halt oil flows through Iraq’s northern export route was made on March 25 in response to an arbitration ruling by the International Chamber of Commerce (ICC), which mandated that Ankara pay damages to Baghdad for unauthorized exports by the Kurdistan Regional Government (KRG) during the period from 2014 to 2018.

Turkey initiated maintenance work on the pipeline, which traverses a seismically active region and had sustained damage from floods.

Bayraktar confirmed that an independent surveyor has completed the examination of the oil pipeline, and they are currently preparing their report. While a specific date for the resumption of oil flows was not mentioned during an embargoed press briefing held by the ministry on Thursday, it is anticipated that oil flows may not restart before October. The interruption has resulted in an estimated $4 billion loss in exports for the KRG.

Turkey is also seeking $950 million from Iraq as a result of the ICC arbitration, accounting for the net amount after damages Turkey has been instructed to pay Iraq.

Additionally, Ankara plans to file a “set-aside case” in a Paris court. In response, Iraq initiated an enforcement case against Turkey in a US federal court in April to enforce a $1.5 billion arbitration award.

While emphasizing the importance of finding an amicable solution between neighboring countries, Bayraktar also stressed the need to safeguard Turkey’s interests from a legal perspective. He acknowledged the possibility of future legal challenges but confirmed that the pipeline is technically prepared and will be operational soon.

Ankara is advocating for Baghdad to withdraw a second arbitration case, covering the period from 2018 onward, and to engage in negotiations for a reduced payment. Turkey also seeks an agreement between Erbil and Baghdad to determine the pipeline’s future beyond its current expiration date in 2026.

Source: with agencies