Turkey-Iraq pipeline row: $1.5bn arbitration and new deal talks

An international arbitration panel ruled that Turkey must pay roughly $1.5 billion to Iraq over the Iraq‑Turkey crude oil pipeline, citing illegal transport of oil at below‑market prices. The Paris appeal was rejected and the enforcement case is proceeding in Washington; interest could raise the liability to $3‑3.5 billion.

Energy Minister Alparslan Bayraktar said Turkey will not extend the 2010 pipeline agreement. Instead, Turkey offered a one‑year temporary transit arrangement with state firm BOTAŞ, allocating up to 750,000 barrels per day, while negotiations continue on a new, broader inter‑governmental treaty (ITP) that could push the line to Basra and increase capacity to 2.5 million barrels per day, possibly adding a parallel gas pipeline.

Opposition parties (CHP, İYİ) sought a parliamentary inquiry into the arbitration outcome and alleged corruption involving the Powertrans firm, but their proposal was rejected. MP Deniz Yavuzyılmaz publicised the penalty amount, accused the AKP of covering up illegal cheap‑oil sales, and called for the fine to be recovered from officials’ personal assets.