Expectations are that oil flow between Iraq and Turkey will continue, with discussions underway to extend the agreement.
Two Turkish sources suggested on Thursday that crude oil would continue to flow from Iraq to the Turkish port of Ceyhan, as Baghdad and Ankara continue their negotiations to extend the agreement to operate the pipeline for an additional 12 months, according to Reuters. DailyNews Reports
One of the sources said that the Iraq-Türkiye pipeline, which is the only functioning outlet for Iraqi oil exports, will continue its operations while talks between the two sides continue to reach a new agreement.
The decades-long bilateral agreement expired last Monday, but Baghdad and Ankara did not sign a new extension during Iraqi Prime Minister Ali Zaidi’s visit to Turkey and his meeting with President Recep Tayyip Erdogan on Tuesday.
Neither the Turkish Ministry of Energy nor the Iraqi Ministry of Oil has issued any official comment on the progress of the negotiations so far.
Turkish Energy Minister Alparslan Bayraktar had announced earlier this month that the two countries had reached a preliminary understanding on extending the agreement for a year, while Turkish President Recep Tayyip Erdogan confirmed last Tuesday that the two sides are seeking to sign a comprehensive energy cooperation agreement “as soon as possible”.
The anticipated extension is expected to provide time to complete negotiations on a more comprehensive agreement, given Turkey’s desire to fully utilize the 1.5 million barrel-per-day pipeline, while also exploring the possibility of extending it to oil fields in southern Iraq.
Turkish data showed that the pipeline is currently transporting about 170,000 barrels of oil per day.
Shafaq.com