Continuation of Oil Export Halt from Iraq to Turkey

Oil exports from northern Iraq to the Turkish port of Ceyhan remain halted after nearly three weeks following a ruling in an arbitration case that requires Ankara to pay compensation to Baghdad for allowing the export of oil from the semi-autonomous Kurdistan region without permission from the Baghdad government. The ruling issued by the International Chamber of Commerce on March 23, obligated Turkey to pay $1.5 billion in compensation to Baghdad for allowing the pumping of Kurdistan's exports between 2014 and 2018. In response, Turkey halted the flow of oil exports, amounting to 450,000 barrels per day. Sources indicate that Turkey wishes to negotiate the compensation as well as reach a resolution on a second arbitration case concerning flows from 2018 before allowing oil pumping to resume. A source familiar with the situation, who requested anonymity, stated that pipeline operators have not yet received any instructions regarding the resumption of pumping. Two other sources noted that Baghdad has not yet requested Turkey to resume oil pumping. A third source indicated that Turkey is seeking to conduct direct negotiations concerning the $1.5 billion compensation ordered to be paid to Iraq.