Türkiye Submits Draft Proposal to Iraq to Renew, Expand Energy Cooperation

Türkiye has sent a draft proposal to Iraq seeking to renew a decades‑old energy agreement, broaden cooperation in oil, gas, petrochemicals, and electricity, and restart the Kirkuk–Ceyhan pipeline.
The ambitious proposal aims to strengthen regional energy integration by reviving oil flows, expanding power exports, and establishing a strategic framework between Ankara and Baghdad.

Türkiye has formally submitted a draft energy agreement to Iraq that would renew and expand cooperation across oil, gas, petrochemicals, and electricity sectors, according to an Iraqi Oil Ministry official speaking to local state media. The fresh proposal comes as the current 1970s-era Kirkuk–Ceyhan crude oil pipeline agreement is set to expire in July 2026 following a presidential decree in Türkiye and amid plans to broaden bilateral energy ties.

The draft envisages restarting the Kirkuk–Ceyhan pipeline, which has been inactive since March 2023 after an arbitration court ruled that Turkey owed $1.5 billion in damages for unauthorized exports, a decision Turkey is appealing. Iraqi officials are currently reviewing the text and negotiating terms to ensure mutual benefits, focusing on strategic and legal updates while maintaining continuity with the existing framework.

Alongside oil, the agreement seeks to establish new collaboration in gas and petrochemicals. Baghdad and Ankara appear to be laying the groundwork for fresh joint ventures aimed at modernizing Iraq’s energy infrastructure and diversifying its energy mix.

A senior Turkish official told Reuters that Ankara remains committed to renewing the pipeline. He described the project as having “the potential to become a highly active and strategic pipeline for the region.” He emphasized that Türkiye has already heavily invested in its maintenance and flagged the projects’ role in advancing the ‘Development Road’, a strategic trade and transit route connecting Basra to Turkey and potentially onward to Europe.

In addition to revitalizing this oil corridor, the proposal extends to electricity exports, with the draft broadening cooperation into electricity transmission and power system integration. Though detailed figures were not released, sources say this component echoes recent expansions in Türkiye–Iraq energy ties.

Türkiye’s move follows a formal decision published in the Turkish Official Gazette, stating that the existing oil pipeline deal and associated protocols will halt from July 27, 2026. That deadline is now a key driver behind negotiations aimed at rolling over and modernizing the agreement to align with evolving energy dynamics in both countries and the region.

From Iraq’s perspective, Ankara’s offer presents a strategic opportunity. The rebuilding of oil and power links aligns with broader efforts to stabilize Iraq’s energy sector, leverage regional infrastructure, and reduce dependence on Iranian energy supplies. A senior Iraqi Oil Ministry official indicated that thorough technical and legal reviews are underway, and that negotiations are ongoing to fine‑tune the proposal to both nations’ interests.

Experts suggest approval of the draft could drive multiple benefits, including resuming Iraq’s oil exports to Ceyhan, unlocking transit revenues for Türkiye, enhancing electricity trade, and reinforcing regional connectivity through the Development Road project. However, success hinges on resolving outstanding disputes related to past exports and arbitration rulings, as well as aligning internal regulations in both capitals.

As the deadline draws near, negotiators from Ankara and Baghdad are preparing for intensified dialogue in the coming weeks. The proposal’s scope, from oil and gas to electricity and petrochemicals, marks one of the most comprehensive energy diplomacy efforts in recent Türkiye-Iraq relations, and may redefine cross‑border energy cooperation in the Middle East.