Iraq and Turkey Negotiate Resuming Ceyhan Oil Flows
Iraq and Turkey are in negotiations to resume oil flows through the Ceyhan pipeline, which has been shut down since the start of the year. The pipeline, which runs from Iraq’s northern oil fields to the Turkish port of Ceyhan, is a major source of revenue for both countries.
Background of the Ceyhan Pipeline
The Ceyhan pipeline was built in the early 2000s to transport oil from Iraq’s northern oil fields to the Turkish port of Ceyhan. The pipeline is owned by the Iraq-Turkey Pipeline Company (ITPC), a joint venture between the two countries. The pipeline has a capacity of 1.6 million barrels per day (bpd) and is the main source of revenue for both countries.
Shutdown of the Ceyhan Pipeline
The Ceyhan pipeline was shut down in January of this year due to a dispute between Iraq and Turkey over the terms of the pipeline’s operation. Iraq had been exporting oil through the pipeline since 2003, but the terms of the agreement had not been updated since then.
Negotiations to Resume Oil Flows
Iraq and Turkey have been in negotiations since the start of the year to resolve the dispute and resume oil flows through the Ceyhan pipeline. The negotiations have been complicated by the fact that the two countries have different interests in the pipeline.
Iraq’s Interests
Iraq is interested in increasing the amount of oil it can export through the pipeline. It is also interested in increasing the revenue it receives from the pipeline. Iraq has proposed increasing the capacity of the pipeline to 2 million bpd and increasing the revenue it receives from the pipeline.
Turkey’s Interests
Turkey is interested in maintaining the current capacity of the pipeline and ensuring that it receives a fair share of the revenue from the pipeline. Turkey has proposed that the revenue from the pipeline be split equally between the two countries.
Outcome of Negotiations
The negotiations between Iraq and Turkey have been ongoing for several months, but no agreement has been reached yet. Iraq’s Oil Minister, Ihsan Ismael, said that the two countries are still in negotiations and that he is hopeful that an agreement can be reached soon.
Impact of the Shutdown
The shutdown of the Ceyhan pipeline has had a significant impact on both countries. Iraq has lost out on revenue from the pipeline, while Turkey has lost out on the transit fees it receives from the pipeline. The shutdown has also had an impact on the global oil market, as the pipeline is a major source of oil for Europe and other countries.
Conclusion
Iraq and Turkey are in negotiations to resume oil flows through the Ceyhan pipeline, which has been shut down since the start of the year. The negotiations have been complicated by the fact that the two countries have different interests in the pipeline. No agreement has been reached yet, but Iraq’s Oil Minister is hopeful that an agreement can be reached soon. The shutdown of the pipeline has had a significant impact on both countries, as well as the global oil market.