A year after the Iraq-Turkey oil pipeline closure, which previously handled about 0.5 per cent of global oil supply, legal and financial obstacles hinder its reopening, as per Reuters sources.
The closure, since March 25, 2023, followed an arbitration ruling against Ankara for unauthorised oil exports from Kurdistan. Though Ankara was ordered to pay Baghdad $1.5 billion in damages, ongoing litigation complicates the resolution, according to Reuters.
Iraq owes Turkey monthly payments as long as the pipeline remains operational, yet with Iraq’s oil export cuts and strained relations between Baghdad and the Kurds, a restart isn’t imminent.
Despite US attempts to mediate, the geopolitical landscape, including global unrest, limits intervention.
International oil companies in Kurdistan, suffering revenue losses and overdue payments, await compensation and a path to resume exports, but formal agreements are elusive.
