Turkey pushes for new Kirkuk–Ceyhan oil pipeline deal ahead of expiry

BAGHDAD, Iraq — Turkey and Iraq opened high-level talks in Ankara days before the expiry of their 1973 Kirkuk–Ceyhan crude pipeline agreement, with Turkey seeking a new five- to ten-year deal rather than a one-year extension of the existing arrangement. Turkish Energy and Natural Resources Minister Alparslan Bayraktar hosted Iraqi Deputy Ministers of Foreign Affairs and Oil alongside Iraq's ambassador to Ankara, Majid al-Lajami. Turkey has formally rejected a one-year extension and is pressing for a longer-term accord, citing the existing agreement's referral to international arbitration in Paris. Turkish officials are also demanding that Iraq fully use the pipeline's 1.5 million barrel-per-day capacity and pay compensation for unused capacity. The pipeline is currently carrying only about 180,000 barrels per day, and officials have warned that flows could be halted by the end of the month under a decision by President Recep Tayyip Erdogan if no agreement is reached. Separately, Turkey is presenting Baghdad with the Development Road project along the Gulf–Europe corridor as a strategic energy and trade route. The Kirkuk–Ceyhan line was shut down after the International Chamber of Commerce ordered Turkey to pay $1.5 billion in compensation in March 2023, following Iraqi losses exceeding $23 billion, before partially resuming late last year.