Iraq and Turkey agree oil pipeline deal targeting 750,000 barrels daily

Iraq and Turkey have signed a one-year agreement to resume oil exports through the Kirkuk-Ceyhan pipeline, targeting a flow of 750,000 barrels per day. The deal aims to restart a critical energy artery that has been largely dormant following legal disputes and infrastructure damage, providing a vital revenue stream for Baghdad and stabilizing supply for regional markets. Production and export targets Under the terms of the bilateral agreement, the two nations will cooperate to ensure the technical readiness of the 970-kilometre pipeline. The target of 750,000 barrels per day represents a significant portion of Iraq’s northern export capacity. On Sunday, 2 August, officials confirmed the deal focuses on immediate operational stability rather than long-term pricing structures, which have been a point of contention in previous years. The agreement follows a period of restricted output from the Kurdistan region, where international oil companies (IOCs) halted production due to the lack of a clear export route. The one-year timeframe provides a window for both governments to resolve outstanding legal issues related to arbitration rulings that previously halted flows in March 2023. Regional energy implications The resumption of flows through Turkey is critical for Iraq as it seeks to meet its federal budget targets, which rely heavily on oil revenues. For Turkey, the deal secures its role as a primary energy hub for Mediterranean and European markets. The move comes as global oil…