Baghdad (IraqiNews.com) – Iraq and Turkey have formally inked a one-year short-term deal to continue operations through the critical Iraq-Turkey oil pipeline.
The agreement, reached in Ankara following discussions between Turkish Energy Minister Alparslan Bayraktar and Iraqi Oil Minister Basim Khudair, guarantees the ongoing transportation of at least 750,000 barrels of Iraqi crude oil per day to the Turkish port of Ceyhan.
Turkey’s state-owned crude oil and natural gas pipeline corporation (BOTAS) signed an agreement with Iraq’s State Organization for Marketing of Oil (SOMO) and the North Oil Company (NOC).
The new deal is now valid for 12 months until both countries develop a new, long-term legislative framework.
The previous agreement, which was reached in 1973, officially expired last Monday.
The short extension of the deal is crucial for Iraq’s revenue from oil exports, as Baghdad seeks alternative export routes to mitigate risks linked to the Strait of Hormuz.
Iraqi Prime Minister Ali al-Zaidi stated that both countries are developing a more comprehensive bilateral framework. This initiative is likely to include cross-border collaboration in the water, electricity, and oil sectors.
The pipeline has a maximum capacity of 1.5 million barrels per day. However, due to legal issues between Baghdad, Erbil, and Ankara, it is currently operating at a capacity ranging between 170,000 and 200,000 barrels per day.
Al-Zaidi described the deal as an important milestone that will protect Iraq’s economy from rising regional crises. Following his high-level diplomatic visit to Ankara, the agreement reestablishes energy transit stability between the two countries.