Turkish Energy Minister Alparslan Bayraktar announced that Turkey and Iraq have finalized the text of a new 12-month oil agreement, which is expected to be signed soon. The agreement will ensure the continued export of Iraqi oil through the Kirkuk-Ceyhan pipeline to international markets.

Oil Exports Through Kirkuk-Ceyhan to Continue

Turkish Energy Minister Alparslan Bayraktar said the new agreement will allow Iraqi oil exports to continue through the Kirkuk-Ceyhan pipeline.

He added that Turkey and Iraq have reached the final text of the agreement, paving the way for its formal signing.

Bayraktar said the agreement will remain in force for 12 months. He noted that the text of the agreement will be published and officially signed in the coming days.

Iraqi Delegation Held Talks in Ankara

Earlier this month, a delegation from Iraq's Ministries of Foreign Affairs and Oil, along with representatives from the Kurdistan Region's Ministry of Natural Resources, visited Ankara.

During the visit, the delegation discussed the resumption of oil exports and the signing of a new agreement with the Turkish Energy Minister.

Current Oil Agreement Nears Expiration

The announcement comes as the long-term oil agreement between Baghdad and Ankara is set to expire on July 27. Turkey announced last year that it would not extend the existing agreement.

The original oil pipeline agreement between Iraq and Turkey was signed in 1973 and was extended for an additional 15 years in 2010.

Turkey Seeks Greater Pipeline Utilization

Turkey is seeking full utilization of the Kirkuk-Ceyhan pipeline, which has a capacity of 1.5 million barrels per day. It is also requesting higher transit fees and increased financial benefits for transporting Iraqi oil through its territory.

Temporary Deal Pending Long-Term Agreement

Bayraktar said the decision to sign a one-year agreement was made because the two sides have not yet reached consensus on the terms of a new long-term deal.

He said the temporary agreement will allow oil exports to continue while negotiations on a longer-term agreement proceed.