Baghdad-Erbil Oil Agreement: Türkiye Proposes Oil Refineries and Financial Participation
Baghdad-Erbil Oil Agreement: Türkiye Proposes Oil Refineries and Financial Participation
2025-10-01 01:18
Shafaq News – Baghdad
An informed source revealed on Wednesday the amendments included in the draft joint oil agreement between Baghdad and Erbil, which Türkiye sent to the Iraqi government two months ago.
The source explained to Shafaq News Agency that “the coming period will witness mutual visits by official delegations representing the two countries to complete the procedures for implementing the security agreement, in addition to including the draft of the Iraq-Turkey oil agreement, the proposals of the concerned parties to complete the new agreement, as the current agreement will end at the beginning of next year, and therefore a new agreement must be re-concluded that is consistent with the developments of the general situation in the region.”
He added, “Among the most important proposals included by the Turkish side in the draft of the new agreement is the establishment of four oil refineries in the northern regions of Iraq, with Turkey having a shareholding in them for a limited period to compensate for its financial loss due to the shutdown of the Ceyhan pipeline. Also, the Iraqi debts owed by Turkey will be paid from the cost of its financial contribution to the construction of the aforementioned refineries.”
The source continued, “Turkey’s contribution will be conditional and time-bound, i.e. adopting the Musataha or Conditional Investment contract formula, in addition to increasing the volume of trade exchange, increasing the volume of oil exports through the Ceyhan port, and linking the oil and economic agreement to the water file.” He indicated that concluding the expected agreement is contingent on Ankara’s commitment to releasing Iraq’s water share concluded between the two sides.
The source added, “Official delegations authorized by both countries will exchange visits to discuss these issues and more, to reach an agreement that serves the interests of both countries.”
After more than two and a half years of hiatus, crude oil exports from the Kurdistan Region’s fields via the Fishkhabur field to the Turkish port of Ceyhan resumed on September 27, at a rate of 190,000 barrels per day.
This step followed several meetings between delegations from the Kurdistan Region’s Ministry of Natural Resources and the federal Ministry of Oil. A tripartite agreement was ultimately reached between the two ministries and the international investing companies, stipulating that exports will be conducted through the Iraqi State Oil Marketing Organization (SOMO), which is responsible for delivering Kurdistan’s oil to the port of Ceyhan.
shafaq.com
