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By News Centre

Intensive energy diplomacy conducted between Ankara and Baghdad throughout July has culminated in a major step forward, ensuring that both nations continue to expand their energy cooperation. Just four days after a meeting between President Recep Tayyip Erdoğan and Iraqi Prime Minister Ali al-Zaidi, the two sides reached a one-year agreement to enable the efficient operation of the Iraq-Turkiye Crude Oil Pipeline.

The "Crude Oil Transport Agreement," negotiated between Petroleum Pipeline Corporation (BOTAŞ) and Iraq's State Oil Marketing Organization (SOMO) alongside the North Oil Company (NOC), was signed yesterday during a ceremony in Ankara. The event was attended by Turkish Minister of Energy and Natural Resources Alpaslan Bayraktar and Iraqi Minister of Oil Basim Muhammad Hudayir.

Under the signed agreement, a daily capacity of 750,000 barrels of the pipeline system has been allocated to Iraq's state-owned oil companies, SOMO and NOC. This arrangement aims to ensure a more efficient utilization of the Silopi–Ceyhan Crude Oil Pipeline System (SCP). Until a long-term, comprehensive cooperation model is established between the two countries, the duration of the crude transport agreement has been set for one year to guarantee that ongoing oil flows remain uninterrupted.

Speaking at the signing ceremony, Energy and Natural Resources Minister Alpaslan Bayraktar stated, "We are capping off a historic week with a historic agreement. The Iraqi Prime Minister's visit to our President ushered in a process where bilateral relations are being advanced, and new projects are discussed and put into motion. In addition to this, Turkish Petroleum becoming a partner in the Kirkuk oil fields was truly a historic and vital milestone."

Highlighting that Türkiye has maintained the operational readiness of the two pipeline systems running from Silopi to Ceyhan for nearly 50 years, Bayraktar noted: "BOTAŞ is responsible for operating this pipeline, as well as managing the storage and loading operations in Ceyhan. Our vision is for these lines, which hold a daily capacity of 1.5 million barrels, to operate at full capacity moving forward. We want to transport oil coming from Iraq—and perhaps in the future from Kuwait and other Gulf nations—along this route to global markets through Ceyhan."

Minister Bayraktar also noted that during President Erdoğan’s meeting with Iraqi Prime Minister al-Zaidi, an initiative was raised for Iraq to supply 1 million barrels of crude oil required by refineries in Türkiye, describing it as a major development.

"This is genuinely crucial for our country's oil supply security," Bayraktar remarked. "Decades ago, our refineries in Türkiye were designed specifically to process oil from neighboring countries. Consequently, Iraqi and Kirkuk crude are the products most utilized by our refineries."

Extending his wishes that all the agreements forged this week bring prosperity to both nations, Bayraktar reaffirmed the significance of Turkish Petroleum's partnership in the Kirkuk fields and indicated that further joint ventures lie ahead.

"After Monday, we are opening a brand-new page," Minister Bayraktar concluded. "On this new page, we will advance collaboration across all energy domains—primarily oil, natural gas, and electricity—as well as other economic sectors, pushing our bilateral trade volume far beyond its current $17 billion mark."