ANKARA,— Turkey still wants to restart oil flows through a pipeline with Iraqi Kurdistan that has been shut for two years and is seeking a new agreement with Baghdad to replace an older deal, a senior Turkish government source told Reuters.
The move comes even as Ankara prepares to terminate a decades-old bilateral arrangement governing the pipeline.
The Kirkuk-Ceyhan pipeline, capable of transporting 1.6 million barrels of crude daily, has remained closed since 2023 following an arbitration ruling that ordered Turkey to pay $1.5 billion in compensation to Iraq.
The penalty stems from Turkey’s acceptance of oil shipments from the Kurdistan Region between 2014 and 2018 without Baghdad’s approval. Turkey is currently appealing the judgment.
Despite Ankara’s plan to end the 1973 Turkey-Iraq Crude Oil Pipeline Agreement and all associated protocols starting July 27, 2026, officials say the route remains crucial to regional energy strategy.
“We continue to see this pipeline as a vital and strategic corridor,” the Turkish official said, speaking on condition of anonymity due to the sensitivity of the matter. “The infrastructure is in place, and Turkey has invested significantly to keep it operational.”
The Turkish government published its intent to withdraw from the agreement in its Official Gazette earlier this week. While the formal termination looms two years ahead, Ankara maintains that it is ready to restart the oil flows once a new framework is negotiated.
The shutdown of the pipeline has affected exports from Iraq’s northern oilfields and the Kurdistan Region.
On July 18, Iraq’s federal cabinet has approved a plan to restart crude oil exports from the Kurdistan Region via the route to the Turkish port of Ceyhan. The decision follows months of dialogue between Erbil and Baghdad aimed at settling longstanding disputes over oil governance.
The pipeline also plays into a broader vision. Ankara views it as a component of the “Development Road” initiative — a proposed network of highways and rail lines linking Iraq’s southern port of Basrah to the Turkish border and further into Europe. Iraq has already allocated initial funding for the megaproject.
Turkey believes the revitalization of the Kirkuk-Ceyhan pipeline and the success of the Development Road would bring mutual benefits for both nations and reinforce regional cooperation.
(With files from Reuters)
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