Turkey's Energy Ministry said on Tuesday that Iraq had been ordered by the International Chamber of Commerce (ICC) to pay compensation to Ankara in a longstanding arbitration case related to oil exports from northern Iraq via Turkey.

The Turkish energy ministry statement was released after Iraq's oil ministry said on Saturday the ICC had ruled in its favour in the case. The Turkish statement said the ICC had recognised a majority of Turkey's demands, without saying how much compensation Iraq had been ordered to pay.

The case relates to Iraq's claim that Turkey violated a joint agreement by allowing the Kurdistan Regional Government (KRG) to export oil through a pipeline to the Turkish port of Ceyhan in 2014.

Baghdad deems KRG exports via Ceyhan port as illegal.

The ICC ruled in favour of Iraq on Thursday in the arbitration case and ordered Turkey to pay Iraq damages relating to the transport of KRG oil through the export pipeline and the discount at which KRG oil was sold, a source familiar with the case told Reuters.

But Turkey won a counter-claim for Iraq to pay a pipeline throughput fee, the source said.

The net amount that Turkey owes Iraq was around $1.5 billion before interest.

(With input from Reuters)