(MENAFN) Türkiye’s Energy Ministry announced on Tuesday that the International Chamber of Commerce (ICC) has ordered Iraq to pay compensation to Türkiye for several violations regarding a longstanding international arbitration case concerning crude oil exports from Iraq's Kurdish Regional Government (KRG). The statement from the ministry followed reports that Iraq had halted crude exports from the KRG's northern Kirkuk fields after winning an arbitration case against Türkiye.
According to the ministry, members of the Arbitral Tribunal have rejected four of the five claims put forward by Iraq, with the majority of Türkiye's demands accepted. As a result, Iraq has been ordered to pay compensation to Türkiye for these violations. The issue, the ministry noted, is a reflection of a years-long dispute between the Iraqi central government and KRG about sharing oil revenues.
Despite instability in the region, the ministry highlighted that Türkiye has undertaken billions of dollars in expenditures to keep the Iraq-Türkiye Oil Pipeline System operational since 1973, which has helped maintain stability in global oil markets. The country has also conducted intensive diplomacy with both parties and relevant countries to arrive at an amicable settlement of the dispute.
The ministry expressed its readiness to fulfill the requirements of international law and make any contribution to the permanent settlement of the conflict between Iraq's central government and the KRG. Türkiye has always respected the unity and territorial integrity of Iraq and has been working relentlessly for the political and economic stability of both Iraq and the KRG government, the statement added.
Iraq is the fifth-largest producer of oil in the world and the second-biggest OPEC producer with a daily production of more than 4.5 million barrels. The country has been in a deadlock for years due to the misuse of resources and the unfair distribution of oil revenues. Despite this, Iraq's proven oil reserves of approximately 145 billion barrels remain a significant source of wealth for the country.
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