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Another reason for not resuming the export of Iraqi oil through Ceyhan was revealed
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Baghdad today - Baghdad
An informed source revealed that the Iraqi government has not asked the Turkish side to resume oil exports from the Kurdistan region so far, despite the agreement between Baghdad and Erbil to resume exports.
Oil exports from the Kurdistan region of Iraq to the Turkish port of Ceyhan are still suspended, nearly three weeks after the issuance of a ruling in an arbitration case stipulating that Ankara pay compensation to Baghdad in return for allowing the export of oil from the region without a permit 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 Ankara to pump Kurdistan’s exports from 2014 to 2018.
In response, Turkey halted the flow of 450,000 barrels per day of oil exports. Sources said Turkey wanted to negotiate compensation as well as resolve a second arbitration case related to flows from 2018 before pumping oil was re-authorised.
An informed source, who requested anonymity, told Reuters today, Friday, that the pipeline operators (TADAWUL: 2360) have not received any instructions yet regarding the resumption of pumping.
Two other sources told Reuters that Baghdad has not yet asked Turkey to resume pumping oil.
A third source told Reuters that Turkey is seeking direct negotiations on compensation amounting to $1.5 billion, which was ordered to be paid to Iraq.
Two Iraqi oil officials told Reuters that the National Oil Marketing Company (SOMO) is waiting for the completion of some technical issues necessary to resume flows, in cooperation with the Ministry of Natural Resources in the Kurdistan Regional Government.
The federal government in Baghdad signed an interim agreement with the regional government on April 4, hoping to resume pumping oil.
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