Iraq Plans Major Oil Export Expansion Through Northern Pipeline, Says Oil Minister

PUKMEDIA

Oil transporting pipeline with Ceyhan port in the background.

Iraqi Oil Minister Bassem Mohammed Khudair has announced an ambitious plan to transport part of the country’s southern oil production through northern pipelines, targeting exports of more than 700,000 barrels per day under the Iraqi-Turkish agreement. He also confirmed that talks are under way with Iran to ensure the safe passage of oil tankers through the Strait of Hormuz.

Speaking to the Iraq's state media (INA), Khudair said Iraq and Türkiye signed an agreement on 1 August extending their existing oil arrangements for one year, during which both sides will prepare a draft long-term framework agreement.

He explained that the agreement is intended to guarantee the continued export of crude oil from the Kurdistan Region’s oilfields while also supporting a broader plan to transport a portion of the southern oilfields’ production through northern export pipelines, raising export capacity to more than 700,000 barrels per day.

Khudair added that discussions led by the Prime Minister also focused on expanding economic cooperation with Türkiye and signing a number of memoranda of understanding across various sectors.

The Iraqi delegation also held talks with Iranian officials on facilitating the safe movement of oil tankers through the Strait of Hormuz. Khudair said he was optimistic that the two sides would reach important understandings in the coming days to help safeguard shipping routes and ensure the smooth passage of oil exports.

The Oil Minister stressed that the Iraqi government's strategy is based on strengthening communication, partnerships and joint investment with neighbouring countries as a key pillar of economic growth.

He added that the additional revenues generated through higher oil exports and expanded agreements with international energy companies would be invested in developing Iraq’s infrastructure, including the health, education and transport sectors, while also supporting the development of the country's human resources.

Iraq and Türkiye signed an agreement on Saturday to increase oil exports through the pipeline to the Turkish Mediterranean port of Ceyhan, as Baghdad seeks to diversify its export routes and reduce its reliance on Gulf shipping lanes.

The Iraq–Türkiye oil pipeline has been largely inactive since 2023, when exports from the Kurdistan Region were suspended following legal and commercial disputes. However, limited exports resumed through the pipeline last year.

Iraqi Prime Minister Ali al-Zaidi described the latest agreement as “an important strategic milestone” that will help ensure the uninterrupted flow of Iraq’s oil exports while strengthening economic cooperation between Baghdad and Ankara.

Before the regional conflict disrupted exports, Iraq was shipping around 3.5 million barrels of crude oil per day, with the majority exported through its southern terminals via the Strait of Hormuz.

The planned increase in exports through the Türkiye pipeline would account for part of Iraq’s overall export capacity. Although it would not restore exports to pre-conflict levels, it would mark a significant rise from the current export rate of around 200,000 barrels per day.

Iraq remains heavily dependent on oil revenues, which provide the overwhelming majority of the country's government income.

The agreement was signed just days after Prime Minister Ali al-Zaidi visited Ankara for talks covering security, trade, energy, transport, water management and joint infrastructure projects between Iraq and Türkiye.

Among the projects under consideration is a new pipeline linking Basra in southern Iraq to Haditha in western Iraq, before extending to the Turkish port of Ceyhan and Syria’s Mediterranean port of Baniyas.



PUKMEDIA