Türkiye-Iraq Oil Pact Nears Expiry Amid Push for New Energy Framework
1973 deal underpinning Kirkuk-Ceyhan pipeline set to end in 2026 as Ankara, Baghdad eye fresh negotiations
By Abdullahi Yusuf
Türkiye has confirmed that its decades-old crude oil pipeline agreement with Iraq, the foundation for one of the region’s most important energy corridors will formally expire on July 27, 2026.
The announcement, published in Türkiye’s Official Gazette following a presidential decree by President Recep Tayyip Erdoğan, signals a pivotal moment for Ankara-Baghdad energy relations that have spanned over five decades.
First signed in 1973 and ratified by Türkiye’s parliament in 1975, the agreement paved the way for the Kirkuk-Ceyhan pipeline, a critical artery delivering Iraqi oil to Türkiye’s Mediterranean port of Ceyhan. Over time, the pact was amended several times to accommodate shifting geopolitical and technical realities.
A key extension in 2010 prolonged the deal by 15 years and set out that any disputes would be resolved under French law at the International Chamber of Commerce in Paris.
However, tensions flared when the Kurdistan Regional Government (KRG) began exporting oil independently, leading Baghdad to file an arbitration case. In 2023, the Paris tribunal sided with Iraq, ordering Türkiye to pay $1.4 billion in damages over underpriced sales and additional fees.
Since then, oil exports via the Kirkuk-Ceyhan pipeline have been halted, causing estimated losses of nearly $20 billion.
Efforts to resume flows advanced in 2025 with a breakthrough agreement between Iraq’s federal government and the KRG, featuring subsidies and a fixed transport fee of $16 per barrel.
With the 1973 pact set to lapse, Ankara and Baghdad are expected to negotiate a new framework to secure long-term energy cooperation and potentially revive the strategic pipeline. Analysts believe improved ties between Erbil and Baghdad could help resolve lingering disputes and pave the way for a sustainable deal.
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