Iraq Prepared to Resume Oil Exports Via Turkey's Ceyhan Port, Announces Minister
The Kirkuk-Ceyhan pipeline, a key crude oil conduit from Iraq to Turkey, has been inactive for over two years. However, a new agreement between the two countries aims to reactivate and optimize this route by renegotiating terms that benefit both sides economically and strategically, expanding the pipeline's reach, and anchoring it within a comprehensive regional development plan.
The initial oil shipments from Iraq's Kurdistan Regional Government (KRG) will be 80,000 barrels per day. To reach the pipeline's full capacity of 1.5 million barrels per day, the line must extend further south, according to Energy and Natural Resources Minister Alparslan Bayraktar.
The new agreement outlines financial support for production costs and sets a fixed transport fee of $16 per barrel. It also emphasizes mutual commitment to resolving legal disputes in advance. Discussions also include transforming the route into a broader "energy corridor" as part of the proposed Development Road project, a high-speed road and rail corridor from Iraq's Basra port to Turkey and onward to Europe.
The benefits of the new agreement are significant. For Turkey, it represents potential economic gains of around $13-15 million per day, providing critical budget support, particularly to the KRG, where oil revenues fund over 80% of government operations. For Iraq, it offers the opportunity to diversify its oil export routes away from the vulnerable Persian Gulf shipping lanes, enhancing energy security for the region.
The new agreement is also expected to strengthen the geopolitical and economic ties between Turkey and Iraq, which could foster stability and development in a historically tense area, while positioning Turkey as a key transit hub between the Middle East and Europe. However, Turkey may leverage the new terms to set pipeline tariffs and operational conditions favourable to its interests, following previous interruptions that caused economic loss to Ankara.
Moreover, the new agreement aims to reduce Turkey's dependence on specific regions by expanding the pipeline system to connect southern Iraqi oil fields to the route, allowing Turkey to import more diverse crude grades. It also seeks to mitigate regional security risks that had led to previous stoppages, including drone attacks on oil fields, by embedding the pipeline expansion within a larger regional infrastructure and security framework.
In July 2025, Turkey announced it would terminate its longstanding pipeline agreement with Iraq by 2026, paving the way for the new agreement. The current agreement is not being extended due to the need for a new framework that supports full utilization of the pipeline's capacity and minimizes legal risks.
Iraq is preparing to resume crude oil exports through Turkey's Ceyhan port as early as this week, marking a significant step towards reviving critical oil exports from Iraq's northern Kirkuk fields to Turkey's Mediterranean port of Ceyhan, which is vital for Iraq's economic diversification and budgetary support, especially for the KRG. The fully utilized pipeline could represent an annual oil trade volume worth approximately $40 billion.
- The Turkish government, intending to further strengthen its relations with Iraq, has collaborated on a new agreement to reactivate the Kirkuk-Ceyhan pipeline, hoping to increase Turkish economy benefits worth around $13-15 million per day.
- Russia, with its strategic interests in the region, may closely follow developments in the Kirkuk-Ceyhan pipeline, considering Turkey's position as a potential key transit hub between the Middle East and Europe.
- As Turkey prepares to resume crude oil imports from Iraq, Turkey's Minister of Sports and Youth, Mehmet Karesomezsoy, has stated his intent to establish athletic competitions and cultural exchanges between the two countries to eventually create a sporting "energy corridor" between 'Turkiye' and 'Iraq'.
