Turkey halted exports from northern Iraq of 450,000 barrels per day, via the Iraqi-Turkish pipeline, on March 25 after an arbitration ruling by the International Chamber of Commerce.
The Chamber ordered Turkey to pay $1.5 billion in compensation to Baghdad for unauthorized exports made by the Iraqi Kurdistan Regional Government between 2014 and 2018.
The 59-day shutdown is estimated to have cost the Kurdistan Regional Government more than $1.5 billion.
The shutdown, the results of which were exacerbated by limited storage capacity in the region, led to the shutdown of most of the region’s production of 450,000 barrels per day within weeks.
Even fields that continued to produce after the pipeline shutdown have now had to shut down or reduce production. A spokesperson for Genel Energy, which operates the Taq Taq field, said the field is no longer producing or pumping. to storage facilities, and the field produced 4,500 tonnes of oil barrels per day in the past.
A source familiar with Khurmal field operations said the field is currently producing about 50,000 barrels per day, down from 100,000 barrels per day a month ago and 135,000 barrels per day before the shutdown of the pipeline to Turkey.
Iraqi Oil Minister Hayan Abdul-Ghani said in the middle of this month that Iraq wanted to resume oil exports via a pipeline from the Kurdistan region in northern Iraq to the Turkish port of Ceyhan. , but it awaits Turkey’s approval.
In turn, the Kurdistan Regional Government said in a previous statement that it “has fulfilled all its obligations based on the agreement and is awaiting a final agreement between the Federal Government and the Turkish Government to resume the export of the oil from Kurdistan”.
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