Source : INDIA TODAY NEWS
Iraq and Turkiye signed an agreement on Saturday to increase oil exports through a pipeline to the Turkish Mediterranean port of Ceyhan, as Baghdad looks to diversify export routes and reduce its reliance on Gulf shipping lanes.
The move comes as Iraq seeks to make its oil export system more resilient after disruptions to shipping through the Strait of Hormuz since the US-Iran war began in February. Iraqi Oil Minister Bassem Mohammed Khudair al-Abadi said the agreement will stay in force for one year while the two countries finalise a broader framework on cooperation in the oil, electricity and water resources sectors.
advertisement
Al-Abadi said the deal sets a minimum export volume of 750,000 barrels of Iraqi crude a day through the pipeline, which runs from Kirkuk in northern Iraq to Ceyhan. The Iraq-Turkiye pipeline has been largely idle since 2023, after exports from Iraq’s semiautonomous Kurdish region were stopped following legal and commercial disputes, though exports resumed in a limited capacity last year.
Iraqi Prime Minister Ali al-Zaidi called the agreement “an important strategic milestone to ensure the uninterrupted flow of our oil exports and strengthen economic cooperation.” Before the conflict, Iraq was exporting about 3.5 million barrels of crude a day in total, with most shipments moving through its southern terminals via the Strait of Hormuz.
The planned exports through the Turkiye pipeline would form part of that overall export capacity. While they would still be below prewar levels, they would mark an increase from current exports of about 200,000 barrels a day. Iraq depends heavily on oil revenues, which make up the vast majority of government income.
The deal was signed days after al-Zaidi visited Ankara for talks on security, trade, energy, transport and water management, along with joint infrastructure projects between the two neighbours. One project under consideration is a pipeline linking Basra in southern Iraq to Haditha in western Iraq, and from there to Ceyhan in Turkiye and the Syrian coastal port of Baniyas. Overall, the agreement is aimed at expanding Iraq’s export options while the two countries work on wider energy and infrastructure cooperation.
With PTI Inputs
– Ends
SOURCE :- TIMES OF INDIA
