Construction Venture Amplifies Strategic Base for Turkey-Iraq Energy Collaboration
As the current oil transportation agreement between Turkey and Iraq, governing the Kirkuk-Ceyhan pipeline, nears its expiration date on July 27, 2026, the two countries are in discussions to replace and expand it with a new comprehensive energy agreement. This expanded deal, as of July 2025, aims to broaden cooperation across multiple energy sectors, including natural gas projects, hydrocarbon field development, refinery and petrochemical investments, electricity generation and transmission, and energy trade.
The strategic potential of the Development Road Project in northern Iraq, envisioned as a multi-purpose trade and energy corridor extending to Europe via Turkey, is a key driver for this expanded cooperation. The new agreement will be structured to leverage this initiative, aiming to facilitate a more integrated and diversified energy partnership beyond crude oil.
The new energy agreement is expected to encompass natural gas projects, hydrocarbon field development, refinery and petrochemical investments, electricity generation and transmission, and multi-dimensional energy trade partnerships. The Development Road Project, seen as offering high strategic potential for both Turkey and Iraq, as well as regional countries, is reported to be 95% complete.
The Kirkuk oil pipeline could potentially transport crude oil from other countries, strengthening Turkey's position as a regional energy center. In the long term, Iraq could export its own gas to Europe when production increases. Transmitting gas from Russia, Azerbaijan, and other sources to Iraq would further consolidate Turkey's position as a gas hub.
The resumption of energy flow following a new agreement would carry long-term strategic significance. President Erdogan believes that the Turkey-Iraq Development Road Project will boost regional stability and trade, potentially generating a $50 billion economic impact. The new agreement is structured around opportunities presented by the successful completion and sustainable functionality of the Development Road Project.
According to Sercan Caliskan, Iraq Studies Researcher at the Middle East Research Center (ORSAM), the negotiation process for the new agreement provides a foundation not only for oil transportation but also for comprehensive and long-term cooperation. He notes that bilateral relations in the energy sector have evolved to a strategic level due to the Development Road Project. The alternative export routes, such as re-delivering Kirkuk oil to Mediterranean refineries, are gaining importance.
bp, involved in developing the Kirkuk field, finds such alternative export routes important for Iraq. The new energy agreement is aimed at preventing legal disputes between the parties through a comprehensive and long-term cooperation framework. Ensuring uninterrupted and secure energy flow after a new agreement would demonstrate the capacity of Turkey and Iraq to build a stable foundation together.
In conclusion, the new comprehensive energy agreement between Turkey and Iraq is set to replace and expand the current oil transportation deal. This expanded deal will go beyond petroleum transportation by encompassing a multidimensional energy cooperation framework involving gas, petrochemicals, electricity, and related infrastructure investments, underpinned by the Development Road strategic initiative and a focus on maximizing pipeline usage and diversifying energy trade.
[1] https://www.aa.com.tr/en/economy/turkey-iraq-development-road-project-to-boost-regional-stability-trade/2320741 [2] https://www.hurriyetdailynews.com/turkey-iraq-to-negotiate-new-comprehensive-energy-agreement-170444 [3] https://www.reuters.com/world/middle-east/turkey-iraq-to-discuss-new-energy-agreement-in-ankara-2021-07-14/ [4] https://www.aa.com.tr/en/economy/turkey-iraq-to-discuss-new-comprehensive-energy-agreement/2320751
- The Turkish government is in discussions with Iraq to replace and expand the current oil transportation agreement that governs the Kirkuk-Ceyhan pipeline, which is set to expire in July 2026.
- The new energy agreement, expected to be completed by July 2025, aims to expand cooperation across multiple energy sectors, including natural gas projects, hydrocarbon field development, and electricity generation and transmission.
- President Erdogan believes that the Turkey-Iraq Development Road Project, intended to create a multi-purpose trade and energy corridor, will boost regional stability and trade, potentially generating a $50 billion economic impact.
- The new agreement will also facilitate the export of Iraqi gas to Europe when production increases and strengthen Turkey's position as a gas hub by transmitting gas from Russia, Azerbaijan, and other sources to Iraq.
- The resumption of energy flow following a new agreement would demonstrate the capacity of Turkey and Iraq to build a stable foundation together, avoiding potential legal disputes.
- Sports and weather updates in Turkey are predicted to be impacted due to the focus of the government and media on the negotiations and implementation of this new comprehensive energy agreement.
