Turkiye and Iraq have signed a new agreement on the operation of the Kirkuk–Ceyhan oil pipeline, extending its validity for another year. The agreement provides the legal framework for the resumption of full-scale Iraqi oil exports through the Turkish Mediterranean port of Ceyhan, one of the region's key energy terminals.

According to Iraqi officials, the renewed agreement provides for the transportation of crude oil from northern Iraqi fields through the pipeline, which has a capacity of up to 750,000 barrels per day. Ankara and Baghdad also intend to increase throughput in the future once technical and commercial negotiations between the Iraqi federal government, the Kurdistan Regional Government (KRG), and international oil companies are completed.

Turkiye and Iraq Sign One-Year Agreement on 750,000-Barrel Oil Pipeline

For decades, the Kirkuk–Ceyhan pipeline has served as one of Iraq's most important oil export routes. However, its operations were effectively suspended in March 2023 following an arbitration ruling by the International Chamber of Commerce, which ordered Turkiye to compensate Iraq for unauthorized exports of oil from the Kurdistan Region. Since then, the two sides have held lengthy negotiations aimed at restoring exports and agreeing on new operational terms for the pipeline.

The new agreement comes amid continued instability in the Middle East and growing risks to global energy markets. Ongoing tensions surrounding the Strait of Hormuz, through which a significant share of the world's oil exports passes, have increased interest in alternative supply routes. In this context, the Kirkuk–Ceyhan pipeline has gained additional strategic importance as one of the region's safest overland energy corridors.

The restoration of the pipeline's full operations is also important for Turkiye's ambition to strengthen its position as a major energy transit hub between the Middle East and Europe. The Ceyhan terminal already handles crude oil exports from Azerbaijan via the Baku–Tbilisi–Ceyhan (BTC) pipeline, as well as oil from selected Iraqi fields. Higher volumes of Iraqi crude would increase the utilization of Turkiye's energy infrastructure and generate additional transit revenues.

Analysts note that the extension of the agreement reflects Ankara's and Baghdad's determination to keep energy cooperation separate from political disagreements. At the same time, the full resumption of exports will depend on resolving outstanding disputes between the Iraqi federal government, the Kurdistan Regional Government, and international oil companies over revenue-sharing mechanisms and production arrangements. If a compromise is reached, exports through the pipeline could resume within the coming months, with significant implications for regional oil markets and Europe's energy security.

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03.08.2026 10:19