Turkey and Iraq Extend Kirkuk-Ceyhan Oil Pipeline Agreement by One Year

## Turkey and Iraq Extend Kirkuk-Ceyhan Oil Pipeline Agreement by One Year Turkey has agreed with Iraq to extend an expired oil pipeline deal by one year and increase crude oil flows, according to a Bloomberg report cited by gCaptain, offering a measure of stability to a key energy corridor that feeds Mediterranean export terminals. The agreement covers the Kirkuk-Ceyhan pipeline, which transports Iraqi crude from the northern Kirkuk oil fields to Turkey's Ceyhan marine terminal on the Mediterranean coast — one of the region's most significant oil export hubs. The pipeline has a nameplate capacity of approximately 1.6 million barrels per day, though actual throughput has historically fallen well short of that figure due to political disputes, infrastructure challenges, and security concerns. The extension comes after the pipeline had been effectively shut down since March 2023, when an international arbitration ruling led Turkey to halt flows following a dispute over unauthorised Kurdish regional exports. The prolonged outage significantly impacted Iraq's northern export revenues and drew attention from global energy markets sensitive to Middle Eastern supply disruptions. According to Bloomberg reporters Firat Kozok, Patrick Sykes, and Khalid Al-Ansary, the renewed deal not only extends the operational framework but also includes provisions to increase flow volumes — a development that could meaningfully boost Iraqi crude reaching Ceyhan for onward shipment to European and global buyers. For the maritime sector, the Ceyhan terminal is a critical loading point for tankers serving European refineries and beyond. A sustained resumption of pipeline flows would increase tanker liftings at the terminal, with implications for crude tanker demand on key Mediterranean and Atlantic Basin routes. The deal reflects broader diplomatic efforts between Ankara and Baghdad to resolve longstanding disputes over pipeline revenue sharing and transit fees. Iraq has been pressing to restore northern export capacity as part of its wider strategy to maximise oil revenues and fund national reconstruction priorities. Market participants and tanker operators will be watching closely to see whether the agreement translates into a meaningful and sustained increase in loadings at Ceyhan, which has operated well below capacity during the extended shutdown period. *Source: gCaptain / Bloomberg*