The Iraq-Turkey Crude Oil Pipeline was constructed within the framework of the Crude Oil Pipeline Agreement signed between the Republic of Turkey and the Republic of Iraq on August 27, 1973 for the transportation of crude oil produced in Kirkuk and other production fields of Iraq to Ceyhan Marine Terminal. The 40-inch (“) diameter and 986 kilometers (km) long first line was commissioned in 1976 and the first tanker loading took place on May 25, 1977.
The second pipeline, which is parallel to the first pipeline and whose construction started in 1985, was completed in 1987. With this 46” pipeline, the annual transportation capacity was increased to 70.9 million tons. On September 19, 2010, Turkey and Iraq signed an amendment agreement to renew and extend the Kirkuk-Yumurtalık Crude Oil Pipeline Agreement and related protocols for 15 years.[1] Trade and infrastructure relations have been recognized as the biggest building block between Iraq and Turkey after the cultural dimension. It is Iraq’s largest crude oil pipeline, allowing the country to export oil from two major oil fields near Kirkuk to Ceyhan in southern Turkey, a distance of 985 kilometers.[2]
Energy diplomacy has been recognized as the most important issue in bilateral relations since the Russian-Ukrainian War. In recent history, the Iraq-Turkey Crude Oil Pipeline has been a gateway for both the Baghdad government and the Iraqi Kurdish Regional Government (KRG) to become actors in the global oil trade via the Mediterranean. Energy partnerships should also be considered among the reasons why bilateral relations cooled down quickly, even during periods of political tensions.
In 2014, after the operations to remove the organization “Dawlah Al Islamiyyah fi-l Iraq wa Al Sham (DAESH)” from Iraqi territory yielded results, disagreements started between the KRG and the Baghdad Government regarding the exploitation of the oil fields in the northern regions of the country. De facto, the KRG’s provision of oil flow from the annexed regions until the date of its withdrawal to its own borders without giving a share to the Baghdad Government has escalated the tensions between Iraq and Turkey.
As the process progressed, the Baghdad Government suspended oil exports and stated that exports would not resume until the crisis was settled on a firm footing between the parties. Sefin Dizayi, the head of the KRG’s Foreign Relations Department, stated on August 30, 2023 that Iraq has suffered a loss of approximately 5.5 billion dollars due to the suspension of exports of KRG oil.[3] International oil and gas agencies, on the other hand, claimed in their reports that the loss of suspended exports was around 2 billion dollars.
After the general elections in Turkey, bilateral talks were initiated on the issue, which became a priority file of the Turkish Ministry of Energy and Natural Resources. The PKK’s settlement in the region after DAESH led to the determination of a common mission between the parties and accordingly, it has been determined that a period of “friendship” has begun to enter with mutual interest.[4] The importance of the Iraq-Turkey Crude Oil Pipeline project is increasing day by day in order to minimize the economic damage to the Iraqi state and to find budget for development programs.
It is worth noting that the strategic pipeline, which accounts for approximately 0.5% to 1% of the global crude oil supply at this point, is still not operational due to mutual maintenance. It has been determined that the Republic of Turkey has fulfilled all its obligations in line with bilateral agreements, except for the issue of export permits. On the Iraqi side, it can be interpreted that exports have stopped due to the continuation of the problems arising from the border dispute with the KRG, which we mentioned earlier.
Turkey has announced its readiness to resume exports through the Mediterranean port of Ceyhan. However, the KRG in particular has blocked the resumption of shipments due to disagreements between Baghdad and Erbil over contracts for international oil companies operating in Iraq. The instability has caused international companies operating in the region to worry about production and has cast a shadow over the region’s opportunities.[5] Moreover, Turkish Deputy Foreign Minister Ahmet Yildiz confirmed the upcoming visit of Turkish President Recep Tayyip Erdogan to Iraq to discuss energy cooperation, among other issues, noting that the halt in Iraq’s oil exports of around 470,000 bpd has hurt both sides.
The fact that the energy file has recently been brought to the agenda amid the intensive diplomatic traffic carried out by the Ministry of Foreign Affairs is promising that the disputes will end and exports will resume in 2024. It is important to put an end to the activities of terrorist organizations in the region, which have created major problems between the parties, and then to start exporting oil again and to put Turkey-Iraq relations back on a “friendship” ground in a serious way.
[1] “Transit Pipelines”, Republic of Turkey Ministry of Energy and Natural Resources, https://t.ly/HNQhz, (Date of Access: 15.03.2024).
[2] “How Did the ‘Oil’ Case, in which Turkey was Convicted to Pay Compensation to Iraq, Start?”, EuroNews, https://tr.euronews.com/2023/03/28/turkiyenin-iraka-tazminat-odemeye-mahkum-oldugu-petrol-davasi-nasil-basladi, (Access Date: 15.03.2024).
[3] “Iraqi Oil Minister’s Statement on Turkey”, Bloomberg, https://www.bloomberght.com/irak-petrol-bakanindan-turkiye-aciklamasi-2341906, (Access Date: 15.03.2024).
[4] “Iraq: We are ready to find a solution for the resumption of oil exports to Turkey”, AA, https://www.aa.com.tr/tr/ekonomi/irak-turkiyeye-petrol-ihracatinin-yeniden-baslatilmasi-icin-cozum-bulmaya-haziriz/3061999, (Date of Access: 15.03.2024).
[5] “Norwegian company stops oil production in Northern Iraq”, DW, https://www.dw.com/tr/norve%C3%A7li-%C5%9Firket-kuzey-irakta-petrol-%C3%BCretimini-durdurdu/a-65164580, (Access Date: 15.03.2024).
