Iraq, Türkiye to extend oil pipeline agreement for another year

BAGHDAD, Iraq (MNTV) — Iraq and Türkiye are expected to renew their bilateral oil pipeline agreement for another 12 months, ensuring the continued operation of a key export route linking northern Iraq to Türkiye’s Mediterranean port of Ceyhan.

Turkish Energy and Natural Resources Minister Alparslan Bayraktar said the two countries had finalized arrangements to extend the agreement, which is due to expire on July 27. He said the renewed deal is expected to be formally signed within days.

The agreement governs crude oil shipments through the Iraq-Türkiye pipeline, with the port of Ceyhan serving as one of Iraq’s principal export terminals for oil destined for international markets.

The extension comes as Iraq seeks to safeguard export capacity amid continued disruptions to maritime trade in the Gulf following heightened regional tensions and security concerns affecting shipping through the Strait of Hormuz.

Türkiye terminated the previous pipeline agreement in 2025 and entered negotiations with Iraq on revised terms. 

Turkish officials have proposed increasing the pipeline’s utilization and exploring infrastructure projects, including a possible extension of the network to southern Iraq.

Oil exports through the pipeline have remained suspended since March 2023 after an arbitration ruling by the International Chamber of Commerce (ICC) found that Türkiye had breached a 1973 bilateral agreement by facilitating exports from Iraq’s Kurdistan Region without the approval of the Iraqi federal government.

The tribunal ordered Ankara to pay Baghdad approximately $1.5 billion in compensation for unauthorized oil exports carried out between 2014 and 2018.

The Iraq-Türkiye pipeline has historically transported hundreds of thousands of barrels of crude oil per day and accounts for roughly 0.5% of global oil supply, making it an important component of regional energy exports.