14.07.2026 14:00
Minister of Energy and Natural Resources Alparslan Bayraktar stated that the final account has not yet been made in the ongoing court case in Washington regarding the $1.5 billion compensation penalty imposed on Turkey. Bayraktar noted that after calculating mutual receivables and interest, it will become clear who is owed, while also announcing that the existing pipeline agreement with Iraq will not be renewed and that they aim for a more comprehensive new agreement instead.
Minister of Energy and Natural Resources Alparslan Bayraktar answered journalists' questions before the Cabinet Meeting held at the Presidential Complex.
Bayraktar made important assessments regarding the enforcement case ongoing in Washington related to the arbitration decision on the Iraq-Türkiye Crude Oil Pipeline covering the 2014-2018 period.
"WHO WILL BE THE CREDITOR IS NOT YET CLEAR"
Speaking about the international arbitration court's decision in 2023 ordering Türkiye to pay $1.5 billion in compensation, Bayraktar said the process is not yet complete.
Bayraktar stated, "In the enforcement case ongoing in Washington, interests and mutual receivables will be calculated. We also have receivables from the past. We will see who is the creditor accordingly. That decision has not been made yet."
NEW AGREEMENT ON THE TABLE
Emphasizing that the Iraq-Türkiye Crude Oil Pipeline Agreement will not continue in its current form, Bayraktar reminded that Türkiye decided not to renew the agreement last year.
Bayraktar noted that they have submitted a new and more comprehensive draft agreement to Iraq, and that negotiations have been prolonged due to the election process in Iraq.
INTERIM FORMULA FOR BOTAŞ
Bayraktar announced that they proposed BOTAŞ transport Iraqi oil for one year until a permanent agreement is reached.
Stating that the Iraqi side requested a transport capacity of 750,000 barrels per day, Bayraktar said Türkiye is ready to allocate this capacity.
TARGET: A NEW LINE EXTENDING TO BASRA
Minister Bayraktar indicated that options such as developing the Kirkuk-Basra line, increasing capacity to 2.5 million barrels per day, and including a natural gas pipeline in the project are on the table under the new agreement.
It was stated that negotiations on the arbitration process and the new pipeline agreement will continue with Iraq in the coming period.