Why did Türkiye decide to terminate the crude oil pipeline agreement with Iraq?
Why did Türkiye decide to terminate the crude oil pipeline agreement with Iraq?
2025-07-21 | 04:56
Alsumaria News- Economy revealed by the economic expert Nabil Al-Marsoumi Today, Monday, the possible reasons for the decision Türkiye By terminating the crude oil pipeline agreement with Iraq.
Al-Marsoumi said that Türkiye I decided to terminate the crude oil pipeline agreement with Iraq, based on Article 11 of the Agreement as amended on September 19, 2010. This Article allows either party to terminate the 15-year Agreement by sending written notice to the other party one year prior to the expiry date of the Agreement.
Al-Marsoumi pointed out that Iraq could have, based on this article, extended or amended the agreement two years before its expiration, but it did not do so.
Al-Marsoumi believes that Turkey’s decision may be related to:
1. Dissatisfaction with the lawsuit:
The decision may have stemmed from Turkey’s dissatisfaction with Iraq, which filed a lawsuit with the Chamber of Commerce Court in Paris, and resulted in Türkiye being fined $1.5 billion for allowing oil exports. Kurdistan Through the Ceyhan pipeline, contrary to the agreement signed with Iraq.
2. The desire to establish new pipelines (the most likely scenario):
This is the most likely, and the decision is linked to Turkey’s desire to establish new pipelines to transport oil and natural gas from Basra To the port of Ceyhan on Mediterranean Sea According to the plan, crude oil will be transported from Basra north to Haditha, before heading to Silopi in southern Turkey. This route also includes a transfer point from Baiji, Iraq, to Fishkhabur, near the Turkish border.
The importance of the new project for Iraq and Turkey:
For Iraq:
The project has a capacity of 2.2 million barrels per day.
The Basra-Silopi pipeline is extremely important for Iraq to export crude oil sustainably.
It provides Iraq with an alternative and easy route to access markets. Mediterranean Sea The Mediterranean.
It represents an extension of the project. Development path Ambitious, aiming to connect Asia In Europe through a network of railways And the roads that pass through Iraq, and therefore it has the approval of Iraqi government For Turkey
:
The project enhances efforts Ankara To transform into a major regional energy hub.
The Basra-Silopi gas pipeline will benefit the region.
In the near term, Turkey plans to supply Iraq with the natural gas needed for electricity generation until local gas fields are developed.
Regarding the implications of the decision on Kurdistan Region Al-Marsoumi stressed that the suspension of the Ceyhan pipeline represents a devastating blow to Kurdistan, as it represents the only outlet for its oil exports, and thus will weaken its economy and make it more dependent on…Baghdad.
alsumaria.tv
