Turkey Pressures Iraq to Operate Kirkuk-Ceyhan Pipeline at Full Capacity Before July 27 Deadline

Turkey is intensifying pressure on Iraq to operate the Kirkuk-Ceyhan oil pipeline at full capacity before the expiration of a significant 1973 agreement on July 27. High-level talks have commenced in Ankara, led by Turkish Energy and Natural Resources Minister Alparslan Bayraktar and an Iraqi delegation including deputy foreign and oil ministers.

The negotiations center on establishing an alternative to the current agreement, as Turkey has rejected Baghdad's request for a one-year extension. Ankara is pushing to increase the pipeline's operational capacity to 1.5 million barrels per day, a substantial jump from the current limited flow of approximately 180,000 barrels per day. Turkey has warned it might halt exports by the end of the month if a new deal is not finalized, with President Recep Tayyip Erdogan holding the final decision-making authority.

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he met senior officials from Iraq’s oil and foreign ministries in Ankara on Wednesday to discuss energy cooperation, including the Iraq-Türkiye crude oil pipeline that runs from Kirkuk to the port of Ceyhan in Türkiye’s southern province of Adana.

Ankara argues that extending the existing agreement, which has already been subject to international arbitration in Paris, is pointless. Turkey seeks a comprehensive deal lasting five to ten years, incorporating binding clauses that would require Iraq to compensate for any unused capacity. This pressure follows a March 2023 shutdown of the pipeline after an International Chamber of Commerce ruling ordered Turkey to pay Baghdad $1.5 billion in damages. The halt resulted in losses exceeding $23 billion for Iraq before pumping partially resumed late last year.

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Türkiye does not see the joint Development Road project merely as a trade corridor for goods. Instead, he described it as an “integrated strategic energy route” that could strengthen regional supply security and boost trade within the region.

Minister Bayraktar confirmed on X that discussions in Ankara covered energy cooperation, specifically the crude oil pipeline linking Kirkuk to the Turkish port of Ceyhan. The Iraqi delegation included Deputy Foreign Minister Hussein Bahr Al-Uloom and Deputy Oil Minister Naser Azez Jabbar. Bayraktar expressed Turkey's eagerness to collaborate with the new Iraqi government on improving existing energy infrastructure and exploring new connections.

Within Turkey's broader regional strategy, Bayraktar described the joint Development Road project, which includes road and rail links from Iraq to Turkey, not just as a trade corridor but as an "integrated strategic energy route." He believes this route can enhance regional supply security and boost trade, emphasizing that partnership is crucial for stabilizing regional energy markets.

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Partnership on the file was crucial to stabilizing regional energy markets.