Oil Flow Expected to Continue Between Iraq and Turkey Amid Extension Talks

Turkish sources indicated that crude oil flows from northern Iraq to Turkey's Ceyhan port are expected to continue. This comes as Ankara and Baghdad negotiate an agreement aimed at allowing the pipeline to operate for an additional twelve months. A bilateral agreement, which had been in place for decades, expired last Monday. Contrary to expectations, Iraq and Turkey did not sign a twelve-month extension during the Iraqi Prime Minister's visit to Ankara and his meeting with the Turkish President on Tuesday. One Turkish source clarified that the Iraq-Turkey pipeline, Baghdad's only operational crude oil export route, will continue to function while both sides proceed with their talks to reach an agreement. Neither the Turkish Ministry of Energy nor the Iraqi Ministry of Oil has commented on these developments so far. Earlier this month, Turkish Energy Minister Alparslan Bayraktar stated that the two countries had reached an understanding regarding a twelve-month extension of the agreement. Turkish President Recep Tayyip Erdogan also indicated on Tuesday that both parties aim to sign a comprehensive energy cooperation agreement as soon as possible. This extension is anticipated to provide the necessary time for discussions on a more comprehensive agreement. Turkey aspires to fully utilize the pipeline, which has a capacity of 1.5 million barrels per day, and potentially extend it to reach oil fields in southern Iraq. Turkish data indicates that the pipeline currently transports approximately 170,000 barrels per day.