Türkiye has sent a draft proposal to Iraq aiming to renew and broaden their energy agreement to include cooperation on oil, gas, petrochemicals, and electricity, according to an Iraqi oil ministry official.
This follows Ankara’s announcement that the decades-old Kirkuk-Ceyhan oil pipeline agreement will end in July 2026. The pipeline, with a capacity of 1.6 million barrels per day, has been inactive since 2023 due to a dispute. An arbitration court ruled Türkiye must pay $1.5 billion for unauthorized Iraqi oil exports between 2014 and 2018; Türkiye is currently appealing the ruling.
The Iraqi oil ministry said it is reviewing Türkiye’s draft and negotiating terms to reach an agreement that benefits both countries.
Türkiye has expressed interest in reviving the pipeline, which it considers strategic for regional projects such as the Development Road — a planned high-speed trade corridor connecting Iraq’s Basrah port with Türkiye and Europe. Baghdad allocated initial funding for the Development Road in 2023.
Türkiye views a renewed energy partnership as a key opportunity to strengthen bilateral and regional cooperation. Details of the proposed agreement have not yet been disclosed.
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