The Lingering Impasse of the Iraq-Turkey Oil Pipeline Closure

Iraq-Turkey Pipeline Closure: A Stalemate

LONDON (Reuters) – A year after the shutdown of the Iraq-Turkey oil pipeline, there is still no progress in resuming operations. Legal and financial obstacles continue to thwart efforts, as shared by three sources with Reuters.

Lost Revenues and Legal Battles

The pipeline once carried about 450,000 barrels per day of crude oil from Iraq to Turkey. Its closure has cost Iraq an estimated $11 to $12 billion, according to the Association of the Petroleum Industry of Kurdistan (APIKUR).

Challenges in Restarting Flows

Despite the financial incentives, discussions on restarting the pipeline have not materialized, revealing the complexity of the situation.

Geopolitical Quagmire

Political tensions between the Iraqi government and the Kurds pose another layer of difficulty. Recent strains in relations have further complicated negotiations.

International Interventions

Efforts from the United States to assist in brokering a deal have faced obstacles amidst ongoing conflicts globally.

Oil Companies at a Loss

International oil companies operating in Kurdistan have incurred significant losses due to the pipeline closure, prompting them to seek compensation.

Stalled Negotiations

Despite multiple meetings, there have been no concrete proposals or agreements from Iraqi or Kurdish officials to reinstate exports, leaving the situation at a standstill.

Challenges Ahead

With mounting debts and unresolved disputes, the path to reopening the Iraq-Turkey oil pipeline remains uncertain.