Pipeline Pause: Turkey-Iraq Agreement Update

Turkey's 1975 pipeline agreement with Iraq is set to expire in July 2026. The halt follows a ruling after Turkey previously suspended oil flows due to a payment dispute. Turkey and Iraq continue talks to resume operations despite past legal challenges.

The 1975 pipeline agreement between Turkey and Iraq is nearing expiration, as reported in the country's Official Gazette. The contract will cease by July 2026, pausing a long-standing oil transport arrangement.

This decision comes amidst ongoing efforts by both nations to reactivate oil flows through a key pipeline to Turkey's Ceyhan port, halted in March 2023. The stoppage followed a ruling by the International Chamber of Commerce (ICC) which mandated Turkey to compensate Iraq $1.5 billion over unauthorized export claims.

Despite Turkey's readiness to resume operations, negotiations hit a roadblock in March regarding payment and contractual issues. The agreement's expiration underscores these ongoing diplomatic challenges.

(With inputs from agencies.)