Iraq's Oil Minister, Bassim Mohammed Khudair al-Abadi, led a delegation to Turkey to finalize an agreement for the transport and loading of Iraqi crude oil via the Iraq-Turkey pipeline to Ceyhan. This visit occurred five days after the 1973 treaty governing the pipeline expired on July 27, though crude oil flows have continued without interruption during negotiations.
The pipeline is crucial for Iraq, carrying crude from northern regions, including Kirkuk and the Kurdistan Region, to Turkey's Mediterranean coast. The route has gained significance following the closure of the Strait of Hormuz, which impacted shipments from Iraq’s southern terminals. In May and June, Iraq exported 32.1 million barrels of crude and condensates through this route, generating approximately $2.34 billion. Oil typically constitutes over 90% of Iraq's federal revenue, and the government recently announced a financial crisis and delayed public salaries.
Turkey had previously closed the pipeline on March 25, 2023, after the International Chamber of Commerce ruled that Ankara breached the 1973 transit agreement by allowing the Kurdistan Regional Government to export oil independently. The pipeline reopened in 2025 after an agreement between Baghdad and the KRG. While the new agreement's specific terms, duration, and tariffs have not been disclosed, Iraq is also exploring other export options, including a memorandum of understanding with Syria to develop a crude export pipeline to Baniyas.
