Iraq and Turkey sign oil deal extending pacts, targeting 700,000 bpd exports
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Iraq and Turkey on August 1 signed a key agreement extending existing oil accords for one year and targeting exports of more than 700,000 barrels per day from southern fields to northern pipelines. The deal, announced by Oil Minister Hayyan Abdul Ghani, also calls for drafting a long-term framework agreement within the year. The signing came even as Baghdad negotiates with Tehran on secure tanker passage through the Strait of Hormuz, with a deal expected within days.
The Signed Deal
The agreement was signed on August 1 between Iraq and Turkey, as confirmed by Iraqi Oil Minister Hayyan Abdul Ghani. It extends existing oil cooperation pacts for one year and mandates the drafting of a long-term framework agreement during that period. The minister described the deal as 'important,' emphasizing that it solidifies bilateral energy ties.
Ambitious Export Goal
The accord sets a target to boost crude exports from Iraq's southern fields to the northern pipeline system to more than 700,000 barrels per day. Abdul Ghani confirmed the ambition, linking the increased exports to infrastructure investments and enhanced international contracts. The resulting revenues will be channeled into health, education, and transportation projects across Iraq, according to the minister.
Hormuz Passage Talks
Separately, Abdul Ghani revealed ongoing negotiations with Iran to ensure the safe and uninterrupted passage of oil tankers through the Strait of Hormuz. He expressed hope that a deal could be reached within a few days. The strait is a critical chokepoint for global oil shipments.
What's Next
The drafting of the long-term framework agreement is expected to commence shortly, while the Hormuz negotiations could yield a pact within days. It remains unclear whether the export target of 700,000 bpd can be achieved within the one-year extension period, given the logistical and contractual hurdles.
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Iraq and Turkey sign oil deal extending pacts, targeting 700,000 bpd exports
