Turkey will pay about $1.5 billion in compensation to Iraq
Iraq halted oil exports from the semi-autonomous Kurdish Regional Government after winning its arbitration case against Turkey.
Iraq, the oil extracted by the Kurdish Regional Government is exported from the Kirkuk-Ceyhan crude oil pipeline. to announced on Saturday that it had won the arbitration case brought by Ankara against Turkey in 2014 for violating the agreement between the two countries.
TURKEY STATED IMPLEMENTING THE DECISION
Iraq A source from the Oil Ministry stated that Turkey will implement the decision made by the International Court of Arbitration. IraqHe indicated that he had notified in writing to .
Another source familiar with the subject affirms that 450,000 barrels per day are sent to Turkey through the Kirkuk-Ceyhan line, of which 75,000 are Iraq He stated that the oil produced by the federal state and 370,000 barrels consists of oil extracted by the Kurdish Regional Government.
PAnother Etrol Ministry official said: “A delegation (from the Ministry) IraqHe will soon visit Turkey and meet with the authorities to agree on a new mechanism to export the oil extracted in northern Turkey.
In the official statement made by the Ministry of Petroleum, the continuation of oil exports through the Ceyhan terminal in the meetings that will be held with the relevant authorities and Iraq He specified that the obligations of the state oil company SOMO with other oil companies will be discussed.
According to a source familiar with the matter, according to the arbitral award, Turkey IraqHe indicated that he had to pay approximately 1.5 billion dollars to .
In addition, a second arbitration case covering the period after 2018 is still pending. The same source indicated that this case is expected to be resolved within two years.
The Turkish authorities did not make any statement on the matter.
PRODUCE QUANTITY
The sources stated that the decision will have an impact on the amount of oil produced by the Kurdish Regional Government, and this will depend on how long the Kirkuk-Ceyhan pipeline will be closed.
The closure of the line has created great uncertainty for the companies that produce oil under the sovereignty of the Kurdish Regional Government.
Dallas-based HKN Energy, which operates in the region, stated in a letter to US authorities last year that the Kurdish Regional Government’s economy would collapse if oil exports stopped.
Northern Turkey on the menu IraqIt was said that it would have to import more crude from Iran and Russia to close the deficit caused by the oil it could not buy from Iran.
The Norwegian DNO, which produces oil in the region, began shipping the oil it extracted into storage tanks after the decision. The DNO said in a statement that the tanks have the capacity to store “several days” of oil.
“DNO noted from the public statements that Ankara, Baghdad and Erbil are in talks to reach an agreement guaranteeing the continuation of oil exports,” the statement said.
IraqDNO shares fell 9 percent, Genel Energy 16 percent and shares of Gulf Keystone, which operates one of the region’s largest fields, fell 22 percent after Turkey halted oil exports. (Reuters)