By Bosphorus News Energy Desk
The Paris Court of Appeal has rejected Türkiye's attempt to annul a $1.47 billion arbitration award in favor of Iraq as Ankara and Baghdad approach a July 27 deadline for the agreement governing the Iraq-Türkiye crude oil pipeline.
The court dismissed Türkiye's application on March 10, 2026, in case No. 23/08160, leaving in place an International Chamber of Commerce award issued on February 13, 2023.
The arbitration concerned crude exported through Türkiye from the Kurdistan Region without authorization from Iraq's federal Oil Ministry.
Award set at $1.47 billion after offsets
The tribunal awarded Iraq $1,997,976,023.50 over breaches connected to the handling and loading of Iraqi crude at Ceyhan.
It also accepted several Turkish counterclaims, including claims linked to minimum guaranteed throughput, unpaid transportation fees and expenses incurred at the terminal.
After those amounts were offset, the tribunal ordered Türkiye to pay Iraq $1,471,390,486.05, subject to interest adjustments.
The figure is the net amount stated in the award after offsets, not a confirmed final payment following the completion of interest calculations and enforcement proceedings.
Iraq has sought recognition and enforcement of the award in the United States, where the case remains active.
Tribunal accepted claims from both sides
The tribunal found Türkiye liable for loading Iraqi oil at Ceyhan contrary to instructions from Iraq's federal Oil Ministry and for restricting Iraqi personnel's access to terminal operations during part of the disputed period.
It rejected some Iraqi claims and accepted several Turkish counterclaims, but the resulting net award remained in Iraq's favor.
The Paris court rejected Türkiye's attempt to set aside those findings.
Second arbitration remains unresolved
A separate arbitration over exports after 2018 remains unresolved and could create further financial and legal exposure for Türkiye.
One-year pipeline arrangement still pending
The longstanding bilateral agreement governing the pipeline is due to expire on July 27.
Turkish Energy Minister Alparslan Bayraktar said on July 9 that Türkiye and Iraq had brought a one-year agreement to its final stage and aimed to sign it within days.
The arrangement had not been publicly confirmed as signed in the latest official statements reviewed by Bosphorus News.
Türkiye had previously rejected extending the existing agreement under the same conditions. Ankara has sought revised terms intended to increase the pipeline's use and govern future operations.
As Bosphorus News reported in June, the deadline also overlaps with negotiations among Baghdad, the Kurdistan Regional Government and international producers over payments, production costs and the federal marketing arrangements required to sustain northern exports through Ceyhan.
Reuters reported that crude exports from Kirkuk to Türkiye stood at about 177,000 barrels per day in April.
July 27 deadline
The Paris decision does not stop the pipeline from operating or determine the terms of the next agreement.
Ankara and Baghdad now face a July 27 deadline to prevent a gap in the pipeline's legal framework. The arbitration dispute remains unresolved.
Sources: Paris Court of Appeal, ICC arbitration records, Reuters, Türkiye's Ministry of Energy and Natural Resources, Bosphorus News review and reporting.