By Huseyin Hayatsever
ANKARA, July 21 (Reuters)
Turkey is ready to continue with Iraq for the benefit of energy reasons. Many aspects of modern life, such as the lights in our houses and the vehicles on the highways, rely on constant energy flows. However, a complicated network of agreements, pipelines, and collaborations that link nations and regions lies behind each switch flip or ignition key turn. These agreements frequently influence connections that go far beyond fuel alone; they can strengthen economies, foster trust, and occasionally even ease long-standing tensions.
Turkey extends its energy cooperation with Iraq by offering a draft
Turkey has submitted a draft proposal to Iraq to renew and expand an energy agreement between the two countries to include cooperation in oil, gas, petrochemicals and electricity, an Iraqi oil ministry official told the state news agency late on Monday. The statement came after Ankara announced the end of a decades-old agreement covering the Kirkuk-Ceyhan oil pipeline.
The Iraqi oil ministry official added. The 1.6 million barrel-per-day Kirkuk-Ceyhan pipeline has been offline since 2023 after an arbitration court ruled Ankara should pay $1.5 billion in damages for unauthorised Iraqi exports between 2014 and 2018. Turkey is appealing the ruling.
“The Ministry of Oil is in the process of reviewing the draft agreement sent by the Turkish side and negotiating with them regarding it to reach a formula that serves the interests of Iraq and Turkey,”
For many years, the two nations have depended on one another to meet their energy needs. Turkey serves as a gateway to Europe and international markets, making it a vital conduit for Iraqi oil exports. In the meantime, Turkey’s expanding energy needs are met in part by Iraq’s enormous oil reserves. The updated draft demonstrates Ankara’s desire to maintain this partnership while adapting it to the current circumstances in the world’s energy markets.
The two nations have been working together so well; a renewable resource was needed and worth it
Turkey still wants to revive the oil pipeline with Iraq, a senior Turkish official told Reuters earlier on Monday. In a decision published in its Official Gazette on Monday, Turkey said the existing deal dating back to the 1970s – the Turkey-Iraq Crude Oil Pipeline Agreement – and all subsequent protocols or memoranda would be halted from July 27, 2026.
Iraq and Turkey have been working to resume oil flows from the pipeline. Ankara said in late 2023 that the pipeline was ready to receive Iraq’s oil, but talks between Baghdad, Iraq’s Kurdistan Regional Government and independent oil producers were not able to reach an agreement on terms. The Turkish official said the pipeline had the potential to become a “highly active and strategic pipeline for the region.”
Turkey and Iraq have invested in each other
The person added that Turkey had invested heavily in its maintenance and noted its importance for regional projects like the Development Road – a planned trade route involving Turkey and Iraq. Turkish official said, without giving details of what Ankara wanted the new agreement to include,
“A new and vibrant phase for the Iraq-Turkey pipeline will benefit both countries and the region as a whole.”
Energy production, consumption and profits have changed over time. It has become more expensive, and right now, although there are methods and initiatives to form renewable energy resources, it still requires money. Therefore, you know what they say, “Two is better than one,” and these two nations, Turkey and Iraq, have worked so well together for half a century that it is worth renewing their contract. They have invested in each other, and this is something nations can attest has worked for the nations despite other economic downturns they might have faced.