Ankara Holds Up The Restart Of The 450,000 bpd Kirkuk - Ceyhan Oil Pipeline
Iraq was upbeat two weeks ago after an International Court of Arbitration called on Ankara to pay Baghdad $1.5 billion for unauthorized exports by the Kurdistan Regional Government (KRG) between 2014 and 2018. Since the ruling Ankara has stopped the export of 450,000 bpd through the Ceyhan port and is seeking to negotiate the $1.5 billion award. Ankara and Baghdad seem to be at an impasse.
According to Reuters pipeline operators have yet to receive any instruction to restart flows. Two other sources told the global news agency that Baghdad has yet to request Turkey to reopen the pipeline.
"Anything regarding oil now is in the hands of Baghdad and Turkey, both sides have to reach an agreement to restart flows," said Lawk Ghafuri, head of foreign media affairs for the KRG.
Lost revenue from the halt for the KRG stands at around $550 million, according to Reuters calculations based on exports of 375,000 barrels per day, the KRG's historic discount against Brent crude and 20 days of outages.
Interestingly, Iraq has also petitioned a U.S. federal court to enforce the arbitration award against Turkey, according to documents filed with the court.