Arbitration statement from the Ministry of Energy: Iraq will pay compensation

The Ministry of Energy and Natural Resources made a statement on the lawsuit filed by Iraq’s central government at the Court of Arbitration of the International Chamber of Commerce in Paris in 2014 and concluded last week.

The Reuters news agency wrote that Turkey would pay around $1.5 billion in compensation to Iraq and that oil shipments from Iraq to Turkey through the Kirkuk-Ceyhan pipeline have stopped.

While the Ministry of Energy and Natural Resources did not provide clear information on the outcome of the lawsuit and the compensation to be paid to Iraq, it stated that among the results of the lawsuit was the decision on compensation payment from Iraq to Turkey.

The statement issued by the Ministry of Energy and Natural Resources is as follows:

“After the news that Iraq won the arbitration case, the need arose to inform the public about the case between our country and Iraq before the Arbitration Center of the International Chamber of Commerce (ICC) based in Paris.

In fact, this case is a reflection of the dispute over oil management rights that has been going on for years between the Iraqi central government and the Iraqi Kurdish regional government, which is also a constitutional unit of Iraq. Our country has always respected the unity and territorial integrity of Iraq and has strived for the political and economic stability of both Iraq and the region.
As an important stakeholder in many international energy projects, Turkey has always acted mindfully of its responsibilities. Despite all the instability in the region, our country has spent billions of dollars to keep the Iraq-Turkey Pipeline System operational since 1973 and has made the necessary contribution to maintaining stability in world oil markets. He developed an intense diplomacy both with the parties and with the relevant countries for the friendly solution of said conflict.

At this stage of the case, the arbitral tribunal rejected four of Iraq’s five requests. He accepted most of our country’s demands and ordered Iraq to pay compensation to Turkey for these violations.

As always, Turkey is ready to comply with the requirements of international law and make any contribution to the permanent settlement of the conflict between the main parties.
We respectfully submit it to the information of the public.”