After the termination of a half-century-old agreement, Türkiye begins comprehensive oil negotiations with Iraq.
After the termination of a half-century-old agreement, Türkiye begins comprehensive oil negotiations with Iraq.
2025-07-22 08:36
Shafaq News – Ankara
Turkish media reported on Tuesday that Ankara has begun negotiations with Baghdad to reach a more comprehensive agreement for the transport of Iraqi oil.
According to Anadolu Agency, the new agreement aims to establish a comprehensive cooperation mechanism with a broader perspective and shared vision in the energy sector.
In this context, a Turkish presidential decree was published in the Official Gazette on Monday, announcing that the crude oil pipeline agreement between Türkiye and Iraq, in effect since 1973, will expire on July 27, 2026.
Negotiations have begun on a more comprehensive agreement to transport Iraqi crude oil to Türkiye, and through it to global markets.
According to the agency, the new agreement is expected to facilitate tangible, long-term cooperation in areas such as cooperation in crude oil and natural gas projects, hydrocarbon field development, partnerships in petrochemical and refining investments, and electricity generation and transmission projects.
Meanwhile, arrangements related to the pipeline system’s capacity allocated to Iraq in the coming period will be discussed. The pipeline system consists of two lines with a total capacity of 1.5 million barrels per day, in addition to the Botas terminal in the Turkish port of Ceyhan.
It is worth noting that the crude oil pipeline between Iraq and Turkey was operated in accordance with the agreement and related protocols concluded in 1973, and renewed in 2010.
This pipeline has become a symbol of energy ties between the two countries, but changing regional conditions, evolving energy markets, and the growing expectations of both countries have limited the agreement’s ability to meet current needs and have also necessitated new commercial, legal, and structural arrangements.
In a report by Shafaq News Agency published on Monday, oil expert Ali Abdullah said that the termination of the agreement reflects Ankara’s desire to reshape its relationship with Iraq on the energy front on new foundations, moving away from old understandings that no longer serve its interests in light of regional and international changes.
In a statement to Shafaq News Agency, economic relations expert Hassan Youssef considered Turkey’s move to terminate the oil agreement with Iraq a deliberate move that reflects Ankara’s desire to strengthen its negotiating position and exploit the energy issue as a strategic leverage in its relations with Baghdad and Erbil.
Oil expert Hamza al-Jawahiri told Shafaq News Agency that exporting via Ceyhan is unprofitable for the federal government because exporting from Ceyhan means paying fees of more than $6 per barrel, or more, which go towards transportation costs.
For his part, economic expert Ahmed Abdul Rabbo explained to Shafaq News Agency on Monday that “the current moment could represent a significant turning point in the future of Iraqi oil policy. If Baghdad exploits it wisely, it could transform from a temporary crisis into an opportunity to build a more diverse and independent energy system.”
“However, this remains a gamble on a unified political stance and a smart economic vision that recognizes that geography alone does not create influence, but rather that power is built through good crisis management and transforming them into strategic gains,” Abd Rabbuh continued.
shafaq.com
