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Turkey agrees a one-year deal to keep Iraq oil exports flowing

The temporary protocol extends the Iraq-Turkey Pipeline corridor for a year, helping Iraq avoid production cutoffs and storage tank capacity issues after disruptions elsewhere.

Reported · Written up by our desk · Energy

OilPrice reports that Iraq has averted an imminent oil-linked economic crisis tied to export disruptions after Turkey agreed to a one-year temporary arrangement for the Iraq-Turkey Pipeline.

The new one-year protocol covers the full Iraq-Turkey Pipeline corridor, which includes two separate pipelines routed to the Turkish port of Ceyhan, treating the system as a single unified mechanism under the original 1973 Crude Oil Pipeline Agreement.

According to OilPrice, the stakes for Iraq are high because around 95% of its crude has historically been shipped through that route, and more than 90% of Baghdad’s annual budget has come from oil exports.

OilPrice adds that the arrangement grew more critical after disruptions including the effective closure of the Strait of Hormuz on 28 February, which contributed to rapid filling of Iraq’s storage tanks and forced the shutdown of production wells, raising risks of long-term damage to production capacity.

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