Turkey and Iraq Near 12-Month Oil Pipeline Agreement

Turkey and Iraq are finalizing a 12-month agreement to ensure the uninterrupted flow of Iraqi crude oil through the Iraq-Türkiye Crude Oil Pipeline to the Mediterranean port of Ceyhan. Turkish Energy Minister Alparslan Bayraktar announced on Thursday that the deal has reached its final stage following productive diplomatic talks in Baghdad with Iraqi Prime Minister Ali Al Zaidi and Oil Minister Basim Mohammed Khudair.

The pipeline, which connects Kirkuk to Ceyhan, remains critical for Iraq's federal budget targets and overall oil exports, particularly as the country manages production collapses linked to the Iran war. Bayraktar confirmed that oil flows will continue under the terms of the extension, with the two nations aiming to sign the formal agreement in the coming days.

Parallel to these diplomatic efforts, Iraq's state-run North Oil Company signed a separate contract with US-based HKN Energy to develop the Hamrin oilfield in northern Iraq. This development project targets a peak production of 140,000 barrels per day to bolster Iraq's energy output.