Pipeline contributes about0.5 of global oil painting force.
ANKARA: Iraq’s northern oil painting import route through Turkey will soon be ready to renew operation after checks on channel conservation and repairs to flood tide damage, the Turkish energy minister said.
A check of the oil painting channel is complete and it’ll soon be “ technically ” ready for operation, Alparslan Bayraktar said:
Turkey halted overflows on Iraq’s northern oil painting import route on March 25 after an arbitration ruling by the International Chamber of Commerce( ICC) ordered Ankara to pay Baghdad damages for unauthorised exports by the Kurdistan Regional Government( KRG) between 2014 and 2018.
Turkey also started conservation work on the channel, which goes through a seismically active zone and which it says has been damaged by cataracts.
As of moment, the independent surveyor completed their check and now they ’re preparing their report, ” Bayraktar said without mentioning a date for resumption of oil painting overflows, in an embargoed press briefing held by the ministry on Thursday.
Iraq and Turkey preliminarily agreed to stay until conservation workshop were complete before continuing the channel that contributes about 0.5 of global oil painting force. Sources said oil painting overflows aren’t anticipated to start before October, with KRG losing roughly$ 4 billion in lost exports.
Turkey also calculates Iraq owes$ 950 million as a result of ICC arbitration, net of damages Turkey has to pay Iraq.
Ankara will also file in the Paris court for a “ set- aside case ”, Bayraktar said. Iraq opened an enforcement case against Turkey in a US civil court in April, to apply a$1.5 billion arbitration award.
As two neighbouring countries, we need to find an amicable result. But from the legitimacy perspective, we need to take care of our interests. Most probably in the future we might face another court challenge. But the channel will be functional technically. It’s more or less ready and we will start the operation soon, ” Bayraktar said.
Ankara wants Baghdad to withdraw a alternate arbitration case covering the period from 2018 onward, and negotiate a reduced payment. Turkey also wants Erbil and Baghdad to agree on a common position and negotiate the continuance of the channel agreement, which is set to expire in 2026.
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