Reviving the Iraq-Turkey Pipeline: A Strategic Oil Route Reimagined

Turkey and Iraq aim to negotiate a new agreement to reactivate a key oil pipeline, halted due to disputes over unauthorized exports. Turkey, appealing a $1.5 billion damages ruling, seeks to revitalize the pipeline, highlighting its strategic importance for regional cooperation and developmental projects. Iraq has yet to respond.

Turkey has expressed its intention to renegotiate an agreement with Iraq, aiming to restore operations on a crucial oil pipeline closed due to a dispute over unauthorized exports. This was disclosed by a senior Turkish official to Reuters on Monday.

The original Turkey-Iraq Crude Oil Pipeline Agreement, which dates back to the 1970s, alongside all related protocols, is set to be halted from July 27, 2026, as announced in Turkey's Official Gazette this week.

The pipeline, which runs to Turkey's Ceyhan port, has been inactive since March 2023 following an order by the International Chamber of Commerce for Turkey to pay Iraq $1.5 billion in damages. Turkey is contesting this ruling and is eager to resume operations, viewing the pipeline as highly strategic for the region.

(With inputs from agencies.)