Türkiye and Iraq have taken an important step to strengthen bilateral energy cooperation. Following talks in Ankara between Energy and Natural Resources Minister Alparslan Bayraktar and his Iraqi counterpart, an annual agreement was signed that provides for the transport of 750,000 barrels of crude oil per day.
The agreement was signed between BOTAŞ and Iraq's state companies SOMO and NOC. BOTAŞ General Manager Abdulvahit Fidan, SOMO General Manager Ali Nizar al-Shatri and NOC General Manager Faysal Hammadi Ramadan signed the agreement.
Minister Bayraktar stated that the steps taken following the meeting between President Recep Tayyip Erdoğan and Iraqi Prime Minister Ali Zeydi are of historic importance for energy cooperation.
While work continues on a new long-term agreement for the Iraq-Türkiye Oil Pipeline, which has served as a strategic energy corridor between the two countries for nearly half a century, the signed transit agreement envisages a daily capacity of 750,000 barrels.
Minister Bayraktar emphasized that the pipeline contributes not only to bilateral trade but also to the stability of global oil markets. "This oil pipeline is extremely important as it provides an alternative route when considering the crisis in Hormuz and the 20 million barrels of oil that are virtually trapped in the Basra Gulf," he said.
Türkiye has been operating the two lines stretching from Silopi to Ceyhan for about 50 years. BOTAŞ is responsible for the operation of the pipeline as well as storage and loading operations in Ceyhan.
Türkiye aims to use the pipeline's full capacity of 1.5 million barrels per day. It is planned that not only Iraqi oil but also oil from Kuwait and other Gulf countries will be delivered to world markets via this route in the future.
Minister Bayraktar stated that the refineries in Türkiye were designed years ago to process oil from this region, and that Iraqi oil and Kirkuk oil are among the most commonly used types of crude oil in these refineries.
Meanwhile, on July 9, Minister Bayraktar discussed the Iraq-Türkiye Oil Pipeline with Iraqi Prime Minister Zeydi in Baghdad. On July 28, Zeydi paid an official visit to Türkiye. On the same day, TPAO acquired a 15% stake in bp's operations in Kirkuk.
The project covers the Baba and Avana fields in Kirkuk, one of Iraq's most important hydrocarbon production areas, as well as the Bay Hasan, Cambur and Habbaz fields. It is estimated that the contract area holds over 3 billion barrels of oil equivalent in hydrocarbon reserves.
