Turkey proposes expanded energy pact with Iraq as pipeline deal nears expiry

Turkey has submitted a draft proposal to renew and expand its energy agreement with Iraq, covering cooperation in oil, gas, petrochemicals and electricity, according to Iraq’s oil ministry. The move follows Ankara’s announcement to terminate the decades-old Kirkuk-Ceyhan pipeline agreement by July 2026.

The 1.6 million barrel-per-day (bpd) pipeline has been offline since 2023, after an arbitration ruling ordered Turkey to pay $1.5 billion for unauthorised oil exports. While Ankara is appealing the decision, it has expressed interest in reviving the pipeline and upgrading its strategic role in regional energy transport.

Iraq’s oil ministry confirmed it is reviewing the Turkish draft and entering negotiations to align mutual interests. Talks to restart oil flows through the pipeline have stalled amid disagreements between Baghdad, the Kurdistan Regional Government, and private producers.

Turkey has maintained the pipeline infrastructure and views it as vital to regional projects such as the Development Road—a proposed trade corridor linking Iraq’s Gulf coast to Europe via Turkey.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama