Iraq and Turkey have signed a one-year agreement to continue operating the pipeline that transports Iraqi crude to the Turkish Mediterranean coast, preserving an important alternative to export routes through the Persian Gulf.
The temporary agreement covers the Iraq-Turkey Pipeline, which runs towards the port of Ceyhan. It was signed in Ankara by representatives of Turkey’s state-owned pipeline operator BOTAS and the Iraqi oil entities SOMO and the North Oil Company.
The arrangement follows the expiration of a decades-old agreement between the two countries. It gives governments additional time to negotiate a broader, more permanent framework for operating and potentially expanding the route.
The pipeline is reportedly transporting approximately 170,000 barrels per day, despite having significantly greater capacity. Turkey has expressed an interest in increasing its use and eventually extending the network to connect with oil-producing areas in southern Iraq.
Expanding the route could reduce Iraq’s dependence on maritime exports passing through the Persian Gulf. That has become increasingly important as geopolitical tensions expose producers and traders to the risk of delays, higher insurance costs and shipping disruptions.
A sustained increase in pipeline exports could also generate opportunities across storage, engineering, maintenance, port operations and logistics. Ceyhan could become more important to buyers seeking additional crude supplies delivered through the Mediterranean.
However, unlocking the pipeline’s full potential will require more than an agreement between Baghdad and Ankara. Long-running disputes involving contracts, payments and oil produced in Iraq’s semi-autonomous Kurdish region have previously restricted exports through the route.
The one-year deal does not resolve every commercial or political issue, but it prevents the operating arrangement from lapsing while negotiations continue.
