Azernews.Az

By News Centre

Türkiye is working with Iraq on a comprehensive agreement to replace the existing Iraq-Türkiye Crude Oil Pipeline Agreement, Energy and Natural Resources Minister Alparslan Bayraktar said, adding that Ankara has proposed a one-year interim arrangement to ensure uninterrupted oil flows while negotiations continue.

Speaking to reporters after a Cabinet meeting, Bayraktar said BOTAŞ, Türkiye's state-owned pipeline operator, has offered to transport Iraqi crude for one year until a broader agreement can be finalized. The proposal is intended to prevent any disruption in oil exports after the current agreement expires.

"We proposed an interim solution under which BOTAŞ would transport Iraqi oil for one year," Bayraktar said. "If we can conclude a new and more comprehensive agreement within three months, we will do so. If it takes six months, then six months. The important thing is that oil flows should not stop on July 27."

Bayraktar also provided an update on the long-running arbitration dispute over the Kirkuk-Ceyhan oil pipeline, which covers the 2014-2018 period. He said enforcement proceedings are continuing in Washington, while Türkiye is awaiting the completion of the legal process.

He recalled that the initial arbitration ruling had been appealed before a court in Paris and noted that the focus is now on calculating the final financial settlement.

"Our primary concern at the moment is the enforcement case in Washington," Bayraktar said. "Interest calculations will be made there. Our claims date back many years. Once that process is completed, that chapter will be closed. Arbitration proceedings covering the period after 2018 are still ongoing."

Bayraktar said Türkiye informed Iraq about a year ago that it would not seek to extend the current pipeline agreement, arguing that the existing framework has proven ineffective.

He noted that the agreement was signed in 2010 but led Iraq to initiate arbitration against Türkiye in 2014.

"We do not want to continue with an agreement that generates disputes," Bayraktar said. "If an agreement repeatedly leads to legal conflicts, then it clearly is not functioning as intended. A new agreement is therefore necessary."

According to the minister, Türkiye sent a draft of the proposed agreement to Iraq last year. However, Iraq's elections and the subsequent government formation process have delayed comprehensive negotiations, making it unlikely that talks will conclude before the end of July.

As an interim measure, Türkiye has proposed that BOTAŞ continue transporting Iraqi crude under a one-year arrangement until a permanent agreement is reached.

Bayraktar said Iraqi authorities indicated they would require transportation capacity of 750,000 barrels per day, while current pipeline flows stand at only 180,000 to 200,000 barrels per day.

He added that Türkiye is prepared to reserve the full 750,000 barrels per day of pipeline capacity for Iraqi exports.

Looking beyond the temporary arrangement, Bayraktar outlined Türkiye's vision for transforming the pipeline into a major regional energy corridor.

He said Ankara has proposed extending the pipeline from Kirkuk to Basra and increasing its total transportation capacity to 2.5 million barrels per day, more than tripling its current potential.

Bayraktar said the proposal was also discussed with the Iraqi Prime Minister.

"We suggested increasing the pipeline's capacity to 2.5 million barrels per day," he said. "If Kuwait wishes to export its oil through this pipeline, it should be able to do so. If other producers in the Gulf region are interested, they should also have access."

According to Bayraktar, the long-term vision is to develop the Iraq-Türkiye pipeline into a broader regional energy corridor that serves not only Iraq but also Gulf producers seeking an additional export route to international markets.