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A Year after Iraq-Türkiye Pipeline Halt, No Progress to Resume Flows

A worker checks the valve gears of pipes linked to oil tanks at Türkiye's Mediterranean port of Ceyhan, which is run by state-owned Petroleum Pipeline Corporation (BOTAS), some 70 km (43.5 miles) from Adana February 19, 2014. REUTERS
A worker checks the valve gears of pipes linked to oil tanks at Türkiye's Mediterranean port of Ceyhan, which is run by state-owned Petroleum Pipeline Corporation (BOTAS), some 70 km (43.5 miles) from Adana February 19, 2014. REUTERS
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A Year after Iraq-Türkiye Pipeline Halt, No Progress to Resume Flows

A worker checks the valve gears of pipes linked to oil tanks at Türkiye's Mediterranean port of Ceyhan, which is run by state-owned Petroleum Pipeline Corporation (BOTAS), some 70 km (43.5 miles) from Adana February 19, 2014. REUTERS
A worker checks the valve gears of pipes linked to oil tanks at Türkiye's Mediterranean port of Ceyhan, which is run by state-owned Petroleum Pipeline Corporation (BOTAS), some 70 km (43.5 miles) from Adana February 19, 2014. REUTERS

A year after the closure of the Iraq-Türkiye oil pipeline, the conduit that once handled about 0.5% of global oil supply is still stuck in limbo as legal and financial hurdles impede the resumption of flows, three sources told Reuters.

About 450,000 barrels per day of crude once flowed through Iraq's northern oil export route via Türkiye, and its closure has led to the loss of roughly $11 billion to $12 billion for Iraq, the Association of the Petroleum Industry of Kurdistan (APIKUR) estimates.

A restart is not being discussed at the moment, one of the sources with knowledge of the matter told Reuters.

Ankara halted flows on March 25, 2023, after an arbitration ruling found it had violated provisions of a 1973 treaty by facilitating oil exports from the semi-autonomous region of Kurdistan without the consent of the Iraqi federal government in Baghdad.

The court ordered Ankara to pay Baghdad $1.5 billion in damages for unauthorized exports between 2014 and 2018. A second ongoing arbitration case covers the period from 2018 onwards.

Meanwhile, Iraq owes Türkiye minimum payments as long as the pipeline is technically operational - estimated by consultancy Wood Mackenzie at around $25 million per month - as part of the treaty, in theory providing an incentive to restart flows.

Also key to any restart deal are the international oil companies operating in the Kurdistan region, who were forced to halt exports as a result of the pipeline closure. Instead, they can only sell oil locally in Kurdistan at a significant discount.

With more than $1 billion collectively owed in overdue payments for oil delivered between October 2022 and March 2023, according to APIKUR, the group continues to push for compensation in line with their contracts.

The companies have also collectively lost more than $1.5 billion in direct revenue since the closure, the group said.

Despite several meetings, neither APIKUR nor its members have received any formal proposals or agreements from Iraqi or Kurdish officials that would lead to a resumption of exports, an APIKUR spokesperson said.

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Arab World

Aoun Wants Formation of ‘Consensual’ Lebanese Govt Representing All Components

Lebanese President Joseph Aoun.
Lebanese President Joseph Aoun.
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Aoun Wants Formation of ‘Consensual’ Lebanese Govt Representing All Components

Lebanese President Joseph Aoun.
Lebanese President Joseph Aoun.

Lebanese President Joseph Aoun is advocating the formation of a government of “consensus” that includes representatives from all political factions.

Meanwhile, Prime Minister-designate Nawaf Salam has requested that parliamentary blocs submit non-partisan nominees for ministerial positions, emphasizing that they must not belong to any political party.

Aoun stressed on Tuesday that all components of society have the right to be represented in the government, parliament and public administration, as this is already practiced in the army.

“We have significant opportunities that we hope to seize by uniting all elements of Lebanese society—civil, spiritual, and political. Together, we can rebuild our nation,” he declared.

Highlighting the importance of meeting international expectations, Aoun hoped for the rapid formation of a government to achieve political, economic, and security stability, which would allow citizens “to live with dignity, not merely in relative comfort.”

During meetings with professional delegations at the Presidential Palace, Aoun said: “We are at a crossroads. Either we take advantage of the current circumstances and rise above sectarian, religious, and political divisions, or we head in a different direction and bear full responsibility for failing to fulfill our duties.”

Negotiations between Aoun, Salam, and political factions over the formation of a government are ongoing. The discussions, which kicked off last week, have reportedly made progress, with efforts directed toward expediting the government formation process, issuing decrees, preparing a ministerial statement, and securing its vote of confidence from lawmakers.

While the Shiite duo of Hezbollah and the Amal Movement appear to have finalized their proposed nominees for the government, disagreements over the ministerial statement remain.

MP Waddah Sadek, who is backed by the opposition, firmly rejected the inclusion of the “Army, People, Resistance” term in the statement. He declared: “No ‘blocking third’ in the government, and no unconstitutional gimmicks. The slogan of the new phase in Lebanon should be: the ‘Army, People, and State.’”

The Kataeb Party echoed this stance, stressing that Lebanon, emerging from a devastating war between Hezbollah and Israel, must align with the Aoun’s inaugural speech and Salam’s remarks by ensuring the ministerial statement exclusively underscores the state’s monopoly over arms and the defense of the nation.

“The government must act decisively, dismantle militias, strictly enforce the ceasefire, and uphold its provisions across all Lebanese territory,” it demanded.

The Kataeb Party also urged Aoun and Salam to resist the “great extortion” by Hezbollah and Amal to secure specific ministries or positions, in violation of the inaugural speech, calling instead for the application of uniform standards to ensure the government’s success.

Meanwhile, Hezbollah adopted a more confrontational tone.

MP Hussein Hajj Hassan, a member of Hezbollah’s parliamentary bloc, commented: “To those betting on Hezbollah’s weakness or the weakness of the Hezbollah-Amal alliance, what will you say when the government is formed? What will you say when you realize the strength of Hezbollah, the alliance, and the resistance’s supporters across all segments of Lebanese society? What will you say when you see the unwavering determination and unity of the resistance at every critical juncture?”