Iraq halts northern crude exports after winning arbitration case against Turkiye

Iraq halted crude exports from the semi-autonomous Kurdistan region and northern Kirkuk fields on Saturday after the country won a longstanding arbitration case against Turkiye. (Shutterstock)
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Updated 25 March 2023
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Iraq halts northern crude exports after winning arbitration case against Turkiye

  • The decision to stop shipments of 450,000 barrels per day (bpd) of crude relates to a case from 2014
  • Baghdad deems KRG exports via Turkish Ceyhan port as illegal

BAGHDAD: Iraq halted crude exports from the semi-autonomous Kurdistan region and northern Kirkuk fields on Saturday, an oil official told Reuters, after the country won a longstanding arbitration case against Turkiye.
The decision to stop shipments of 450,000 barrels per day (bpd) of crude relates to a case from 2014, when Baghdad claimed that Turkiye violated a joint agreement by allowing the Kurdistan Regional Government (KRG) to export oil through a pipeline to the Turkish port of Ceyhan.
Baghdad deems KRG exports via Turkish Ceyhan port as illegal.
“Iraq was officially informed by the International Court of Arbitration [about the] final ruling on Thursday and it was in favor of Iraq,” a senior oil ministry official said.
Turkiye informed Iraq that it will respect the arbitration ruling, a source said.
Turkish shipping officials told Iraqi employees at Turkiye’s Ceyhan oil export hub that no ship will be allowed to load Kurdish crude without the approval of the Iraqi government, according to a document seen by Reuters.
Turkiye subsequently halted the pumping of Iraqi crude from the pipeline that leads to Ceyhan, a separate document seen by Reuters showed.
On Saturday, Iraq stopped pumping oil through its side of the pipeline which runs from its northern Kirkuk oil fields, one of the officials told Reuters.
Iraq had been pumping 370,000 bpd of KRG crude and 75,000 bpd of federal crude through the pipeline before it was halted, according to a source familiar with pipeline operations.
“A delegation from the oil ministry will travel to Turkiye soon to meet energy officials to agree on new mechanism to export Iraq’s northern crude oil in line with the arbitration ruling,” a second oil ministry official said.

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The final hearing on the arbitration case was held in Paris in July 2022, but it took months for the arbitrators, the secretariat of the arbitration court and the International Chamber of Commerce to approve the verdict, a source familiar with the process told Reuters.
The impact on the KRG’s oil production depends heavily on the duration of the Iraqi Turkish Pipeline (ITP) closure, sources said, adding this would cause significant uncertainty to oil firms operating in the Kurdistan Region in Iraq (KRI).
A cessation of exports through the pipeline would trigger a collapse of the KRI economy, according to a letter last year to US representatives from Dallas-based HKN Energy, which operates in the region.
Turkiye would need to source more crude from Iran and Russia to make up for the loss of northern Iraqi oil, the letter said.
Analysts have warned that companies could withdraw from the region unless the environment improved.
Foreign oil firms, including HKN Energy and Gulf Keystone, have linked their investment plans this year to the reliability of KRG payments, which face months of delays.


For Syria’s Kurds, dream of autonomy fades under Damascus deal

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For Syria’s Kurds, dream of autonomy fades under Damascus deal

  • “We made many sacrifices,” said Mohammed, spokesperson for the YPJ
  • The YPJ is part of the Kurdish-led Syrian Democratic Forces that spearheaded the fight against Daesh

HASAKEH, Syria: At a military base in northeast Syria, Roksan Mohammed recalled joining the battle against Daesh group militants. Now her all-woman fighting unit is at risk after a deal with Damascus ended the Kurds’ de facto autonomy.
“We made many sacrifices,” said Mohammed, spokesperson for the Women’s Protection Units (YPJ), who stood with a gun slung over her shoulder.
“Thousands of martyrs shed their blood, including many of my close comrades,” the 37-year-old added.
The YPJ is part of the Kurdish-led Syrian Democratic Forces (SDF) that spearheaded the fight against Daesh in Syria with the help of a US-led coalition, leading to the militants’ territorial defeat in the country in 2019.
But Kurdish forces now find themselves abandoned by their ally as Washington draws closer to the new Syrian government of President Ahmed Al-Sharaa, who ousted longtime ruler Bashar Assad in 2024.
Under military pressure from Damascus, the Kurds agreed to a deal last month on integrating their forces and civilian institutions into the state. It did not mention the YPJ.
“The fate of female Kurdish fighters seems to be one of the biggest problems,” Mutlu Civiroglu, a Washington-based analyst and expert on the Kurds, told AFP.
“Kurds will not accept the dissolution of the YPJ,” he added, as “in their political system, women have an elevated status.”
“Each official position is safeguarded with a co-chair system which dictates that one must be a woman,” he said.
YPJ fighter Mohammed remained defiant.
“Our fight will continue... we will intensify our struggle with this government that does not accept women.”

- Disagreements -

Under the deal, Syria’s Kurds must surrender oil fields, which have been the main source of revenue for their autonomous administration.
They must also hand over border checkpoints and an airport, while fighters are to be integrated into the army in four brigades.
However, the two sides disagree on the deal’s interpretation.
Damascus “understands integration as absorption, yet Kurds see it as joining the new state with their own identity and priorities,” Civiroglu said.
“The issue of self-rule is one of the major problems between the two sides.”
For the Kurds, the agreement all but ended their de facto autonomy in Syria, which they established during the country’s 13-year civil war.
“Previously, our regions were semi-autonomous from Syria,” said Hussein Al-Issa, 50, who works for the Kurdish administration’s education department.
But “this is no longer the case,” he said, after the government drove Kurdish forces from wide areas of northeast Syria in January and the two sides agreed to the deal.
“Coupled with the loss of territory over the past month, the January 30 agreement appears to spell the end for Kurdish ambitions to establish a federal or decentralized system in Syria,” said Winthrop Rodgers, an associate fellow at Chatham House.
The decision by US President Donald Trump’s administration “not to intervene was a key factor, along with Arab and tribal defections from the SDF,” he added.

- ‘Not a single bullet’ -

The Kurds have not hidden their bitterness toward Washington, under whose leadership the anti-militant coalition had positioned bases in Kurdish-controlled areas.
A source with knowledge of the matter told AFP that during a meeting in Iraqi Kurdistan last month, US envoy to Syria Tom Barrack told SDF chief Mazloum Abdi that the United States “will not fire a single bullet against Damascus” for the Kurds.
Kurdish education department worker Issa said the US abandonment was “a major blow to the Kurds.”
“Their interests with us ended after we finished fighting Daesh,” he said.
He added that Turkiye, an ally of Washington and Damascus, had “applied pressure” to end the Kurds’ autonomy.
Barrack, who closely followed the negotiations, said last month that the SDF’s original purpose in fighting Daesh had “largely expired” after Syria joined the anti- Daesh coalition.

- Defections -

Sharaa is intent on extending the state’s authority across the country.
In early January, after a previous deal with the Kurds stalled for months, he went on the offensive, with government forces clashing with Kurdish fighters in parts of Aleppo province before pushing eastwards.
But he avoided the bloodshed that tarnished the early months of his rule, when hundreds of members of the Alawite minority were massacred on the coast in March, and after deadly clashes erupted with the Druze in the south in July.
A source close to Damascus told AFP that “authorities coordinated with Arab clans from SDF-controlled areas months prior to the offensive,” in order to secure their support and ensure government forces’ “entry into the region without bloodshed.”
Arab personnel had made up around half of the SDF’s 100,000 fighters.
Their sudden defection forced the SDF to withdraw from the Arab-majority provinces of Raqqa and Deir Ezzor with little to no fighting and to retreat to Kurdish areas.

- ‘No rights’ -

Sharaa issued a decree last month on Kurdish national rights, including the recognition of Kurdish as an official language for the first time since Syria’s independence in 1946.
The minority, around two million of Syria’s 20 million people, suffered decades of oppression under the Assad family’s rule.
“We lived under a political system that had no culture, no language and no political or social rights... we were deprived of all of them,” said Roksan Mohammed.
Issa, who teaches Kurdish, said he feared they would lose their autonomous administration’s hard-won gains.
“There is great fear for our children who have been doing their lessons in Kurdish for years,” he said.
“We do not know what their fate will be.”