Ankara announces resumption of Iraqi-Turkish oil pipeline operations after 6 month suspension

Turkey’s Minister of Energy and Natural Resources, Alparslan Bayraktar, has declared on Monday that the nation is set to recommence the operation of the crucial Iraqi-Turkish oil pipeline later this week. This development comes after a suspension that endured for nearly six months.

Addressing attendees at the ADIPEC conference in Abu Dhabi, Minister Bayraktar stated, “During this week, we will initiate operations on the Iraqi-Turkish pipeline, enabling the transportation of approximately half a million barrels of oil to global markets.”

Bayraktar emphasized Turkey’s role as a dependable conduit for oil and gas transportation. The halt in oil flows through the pipeline in northern Iraq had been instituted on March 25, following an International Chamber of Commerce (ICC) ruling that ordered Ankara to compensate Baghdad with $1.5 billion.

This compensation was designated for damages attributed to the Kurdistan Regional Government’s (KRG) unauthorized oil exports between 2014 and 2018, without consent from the federal government in Baghdad.

Turkey had commenced maintenance work on the pipeline during the suspension period, citing the pipeline’s passage through a seismically active region, coupled with damage caused by floods. Prior to the shutdown, the Kurdistan Region of Iraq had been exporting approximately 450,000 barrels of crude oil daily through this pipeline.

The resumption of operations holds significant implications for the regional energy landscape and global oil markets.