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Iraq petitions US court to enforce oil export arbitration award against Turkey


© Reuters. FILE PHOTO: A worker performs checks at Turkey’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/Umit Bektas/File Photo

ISTANBUL (Reuters) – Iraq has petitioned a U.S. federal court to enforce an arbitration award against Turkey related to Iraqi oil exports through a pipeline to a Turkish port, according to documents filed with the court.

Under last month’s International Chamber of Commerce (ICC) arbitration ruling, Iraq was awarded damages in a case in which Baghdad accused Ankara of allowing the Kurdish Regional Government (KRG) to export oil without Baghdad’s consent between 2014-2018.

The petition, filed with the U.S. District Court of the District of Columbia, requested from the court, “Recognizing, Confirming, and Enforcing the Final Award issued by the Arbitral

Tribunal.”

The arbitration ruling prompted Turkey to halt oil flows, corresponding to about 0.5% of global supply, on the pipeline to the Turkish port of Ceyhan. Baghdad deems KRG exports via Ceyhan illegal.

Iraq’s federal government and the KRG signed a temporary agreement last week that would allow northern oil exports through Turkey to restart, but flows haven’t started, according to shippers.

Turkey wants another case that covers the period from 2018 onward resolved before reopening the pipeline, sources have previously told Reuters.

Iraq said on March 25 that it had won the arbitration case. According to a source familiar with the case, Turkey was ordered to pay Iraq around $1.5 billion before interest in a ruling that covers 2014-2018.

Three days later, Turkey’s Energy Ministry said Iraq had also been ordered by the ICC to pay compensation to Ankara.

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