Turkey and Iraq extend the agreement on the operation of the Kirkuk-Ceyhan pipeline

Turkey and Iraq have extended their agreement on the operation of the Kirkuk-Ceyhan oil pipeline, ensuring continued crude oil flow through the conduit that connects the two countries. The one-year deal was signed by Turkey's state energy company BOTAS and Iraq's national oil firms SOMO and NOC, just days after the previous bilateral agreement, valid for over a decade, expired. The new arrangement guarantees a daily throughput of 750,000 barrels of crude oil, according to reports. The agreement was reached four days after Iraqi Prime Minister Ali al-Zaidi visited Turkish President Recep Tayyip Erdogan in Ankara. The visit marked a renewed diplomatic push to stabilize energy cooperation between the two nations amid ongoing regional tensions. The deal comes at a time when global oil markets are experiencing significant shifts due to geopolitical conflicts and supply disruptions. Turkish Energy Minister Alparslan Bayraktar announced the signing on social media platform X, describing the meeting with Iraqi Oil Minister Basem Mohammed Hudeir as “fruitful.” He emphasized that the current agreement serves as a transitional measure while both countries work toward a long-term oil pact. According to Bayraktar, the deal holds strategic significance given recent developments in international oil markets. The Kirkuk-Ceyhan pipeline has a capacity of approximately 1.5 million barrels per day, though actual throughput has been significantly lower in recent years. Currently, the pipeline transports around 170,000 barrels daily, primarily from oil fields in Iraq’s Kurdish region, which have been targeted by drone and rocket attacks since the start of the war. Ankara aims to gradually expand the pipeline’s usage to include oil fields in southern Iraq as well. Iraqi Prime Minister Ali al-Zaidi welcomed the agreement on X, calling it a “significant strategic milestone.” His government plans to negotiate a broader framework agreement that would cover multiple energy sectors, water resource management, and other areas of collaboration aimed at strengthening shared interests and supporting development and stability. The timing of the agreement coincides with a sharp decline in Iraq’s oil exports following U.S. and Israeli military actions against Iran in late February. Export volumes dropped by more than 80 percent, reducing monthly oil revenue from nearly $6 billion to under $2 billion. With the closure of the Strait of Hormuz, Iran had to seek alternative routes for its oil exports. This new deal revives Iraq’s sole export route to the Mediterranean Sea, offering a critical lifeline for the country’s economy. The Kirkuk-Ceyhan pipeline has historically played a vital role in Iraq’s oil exports, particularly during periods of political instability and conflict. Its resumption under the new agreement signals a step toward restoring normalcy in the region’s energy sector. However, challenges remain, including security threats to infrastructure and fluctuating demand in global markets. Both governments expressed commitment to maintaining the pipeline’s operations and expanding cooperation beyond oil. Discussions reportedly included potential joint ventures in renewable energy, infrastructure development, and cross-border trade. These efforts aim to build a more resilient economic partnership between Turkey and Iraq, despite lingering regional disputes and external pressures. The deal reflects a pragmatic approach by both sides to address immediate energy needs while laying groundwork for future collaboration. As the pipeline resumes its function, the focus will shift to ensuring its security and maximizing its contribution to regional stability and prosperity.