Turkey to terminate oil pipeline agreement with Iraq by 2026
Turkish President Recep Tayyip Erdogan issued a presidential decree, and the decision was published in the country's official newspaper.
According to the notice, the initial agreement, established in July 1973, will expire on July 27, 2026, together with any relevant protocols, annexes, and extensions.
The 1973 agreement paved the way for the Iraq-Turkey crude oil pipeline. This critical infrastructure project enabled the transit of millions of barrels of Iraqi oil to the Turkish port of Ceyhan on the Mediterranean.
This legal framework later played an important role in arbitration procedures sparked by the Kurdistan Regional Government's (KRG) oil exports through the pipeline.
The KRG began exporting oil freely via the pipeline, forcing Iraq's federal government in Baghdad to pursue an arbitration action against Turkey in 2014. Baghdad alleged that the KRG's independent oil exports through the pipeline violated the Iraqi constitution.
Crude oil shipments through the Iraq-Turkey oil pipeline have been suspended since March 2023. This pipeline previously accounted for approximately 0.5 percent of the world's oil supply.
After the International Chamber of Commerce (ICC) in Paris ruled that Ankara had violated a 1973 treaty by permitting oil exports without the approval of the federal government in Baghdad, oil flows via the Iraq-Turkey oil pipeline were stopped.
The ruling obligated Turkey to pay Baghdad $1.5 billion in compensation for losses caused by the KRG's illegal oil exports between 2014 and 2018.
Efforts to resume oil exports have gathered speed in 2025, with the Iraqi cabinet approving a new oil accord between Baghdad and the KRG in July.
With the 1973 agreement planned to expire in 2026, Ankara and Baghdad are expected to negotiate a new legislative framework for cross-border energy cooperation.
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