The Iraq-Turkey oil pipeline (ITP) has been closed since March 2023. Credit: Oleksii Liskonih via Getty Images.

Turkey will reopen an oil pipeline to Iraq this week after it was suspended for around six months.

Alparslan Bayraktar, Turkey’s Energy Minister, said on Monday at the ADIPEC conference in Abu Dhabi: “Within this week, we will start operating the Iraq–Turkey pipeline after resuming operations. It will be able to supply half a million barrels, almost, to global oil markets.”

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

In March 2023, Turkey stopped flows through the twin pipeline after the International Chamber of Commerce International Court of Arbitration ordered Ankara to pay around $1.5bn (Tl41.16bn) in damages to Iraq for transporting oil without Baghdad’s approval. Turkey wants the fine to be reduced.

The arbitration case has been running in the Paris-based court for almost nine years with Iraq claiming that Turkey had violated the 1973 pipeline transit agreement by allowing crude from the Kurdish region to be exported without Baghdad’s permission.

Since the ruling, Ankara has started maintenance work on the pipeline, which contributes around 0.5% of global crude supply, as it says the pipeline was damaged by earthquakes in February.

The line provides an important source of revenue for the Kurdistan region and since its closure the Kurdistan Regional Government has been forced to rely on loans to pay public salaries.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Before the closure, the twin pipeline had a capacity of 1.6 million barrels per day (bpd) but averaged around 450,000bpd just before it shut.

It is estimated that Turkey has lost more than $1bn worth of revenue since the closure. Turkish authorities believe Iraq is losing far more, however, and Baghdad and Erbil will therefore have a strong motivation to find a solution.