Turkey Reportedly Opposes Iraq Pipeline Deal Extension, Demands Maximum Flows
The Turkish government is reportedly unwilling to extend the existing Kirkuk-Ceyhan oil pipeline agreement beyond the July 27 expiration date, following Iraq's request to prolong the deal for at least a year, multiple media outlets reported on Tuesday, citing an official.An agreement subject to arbitration does not warrant an extension, according to a Turkish official cited by Reuters.Ali Nizar, head of Iraq's State Oil Marketing Organization, reportedly said on Monday that Baghdad had requested an extension of the current contract to allow additional time for negotiations on a replacement deal.The two countries have been involved in a policy dispute over the pipeline, with an arbitration court ruling that Turkey must pay $1.5 billion in compensation for unauthorized Iraqi exports between 2014 and 2018, according to multiple media outlets.Pipeline operations halted in February 2023 following damages caused by an earthquake, with flows resuming only in September 2025.The 986-kilometer pipeline has a capacity of almost 1.5 million barrels per day, but is underutilized due to security and other issues, Reuters reported. Shipping data reviewed by the news agency showed that crude exports from Kirkuk to Turkey were at 177,000 barrels per day in April.A Turkish official cited by Bloomberg said that the pipeline must run at full capacity to renew the agreement, which should also be subject to a longer term of 10 years instead of the current five.Turkey reportedly wants Iraq to pay for any unused capacity. If the countries fail to reach a deal, Turkey could ask Iraq to cease oil flows, Bloomberg reported.Turkey's energy ministry did not immediately respond to' request for comment.