(MENAFN- Iraq Business News)
By John Lee.
Oil exports from Iraqi Kurdistan were suspended on Saturday after a ruling that Turkiye can not allow exports from the autonomous region by pipeline to the port of Ceyhan (pictured).
The Paris-based International Court of Arbitration , which operates under the auspices of the International Chamber of Commerce (ICC) , found that Turkiye was in violation of the Iraqi-Turkish pipeline agreement signed in 1973, which stipulates that the Turkish government must comply with the instructions of the Iraqi (i.e. Baghdad) side regarding the movement of crude oil exported from Iraq.
The ruling cuts off exports of approximately 400,000 barrels per day (bpd) from the Kurdish region. Baghdad also exports about 75,000-100,000 bpd of crude from kirkuk via the pipeline.
According to a report from the Financial Times, citing an anonymous person familiar with the case, Turkey was also ordered to pay around $1.5 billion.
Oil companies affected include Genel Energy , Gulf Keystone Petroleum (GKP) , DNO and Shamaran .
Iraq's Ministry of Oil in Baghdad welcomed the decision, adding that it will discuss mechanisms for exporting Iraqi oil through Turkiye with the concerned authorities in the region and with the Turkish authorities.
The Prime Minister of the Kurdistan Regional Government, Masrour Barzani, tweeted, "Our recent understandings with Baghdad have laid the groundwork for us to overcome the arbitration ruling today".
(Sources: Ministry of Oil, Financial Times, @masrourbarzani)
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