Iraq seeks alternative oil route to bypass Hormuz, prepares for major deal with Turkey
Photo: Collected
Amid prolonged disruption to shipping in the Strait of Hormuz, Iraq is looking for alternative routes for oil exports. As part of this, the country has begun talks with Turkey on a new framework agreement to increase bilateral cooperation in the oil, gas and energy sectors.
Formal talks on the matter began between Iraqi and Turkish officials in the Turkish capital Ankara on Friday. The meeting discussed infrastructure development in the oil and gas sector, the petrochemical industry, trade in oil, gas and energy, and various ways of widening the scope of the two countries’ joint activities.
Iraq’s oil ministry said in a statement that the meeting discussed a possible outline for increasing cooperation in developing the oil and gas sector infrastructure of the two countries. In addition, the petrochemical industry and the expansion of trade in oil, gas and energy were also given importance. According to the ministry, the officials also discussed how the framework and coordination of joint work could be made more effective to protect the mutual interests of the two countries.
Alternative export route amid Hormuz crisis
Since war began between the United States and Iran in late February, shipping in the Strait of Hormuz has been severely disrupted. Because of the crisis in this strait, known as one of the world’s most important energy transport routes, Iraq is trying to diversify its oil export infrastructure and export corridors.
Oil exports are extremely important for Iraq’s economy. Baghdad is therefore giving importance to increasing opportunities for transporting oil overland by reducing dependence on the Gulf waterway.
In continuation of this, Iraq and Turkey signed a one-year oil transport agreement last August. The agreement that previously existed between the two countries had expired in late July. Iraqi oil ministry spokesperson Salim al-Rukabi at the time described the new agreement as a ‘temporary agreement’ and said there was a plan under it to gradually increase oil exports and take them to the pipeline’s full capacity.
In early August, Iraq’s oil minister had also said Baghdad was planning to raise oil exports through Syria and Turkey to more than 1 million barrels per day.
Two countries on the path to a long-term agreement
Turkey’s Energy and Natural Resources Minister Alparslan Bayraktar said in a post on social media platform X on Friday that he had held a meeting with an Iraqi delegation at the Turkish energy ministry.
Noting that the security of energy supply has become more important than at any time before because of the regional situation, Bayraktar said an initiative is being taken to take the energy relationship between Turkey and Iraq to a new and stronger level.
Last August, a crude oil transport agreement was signed between Turkey’s state oil and gas pipeline company BOTAS, Iraq’s State Organization for Marketing of Oil (SOMO) and North Oil Company. On the basis of that agreement, the two countries are now preparing the outline of a new, long-term and more comprehensive agreement, Bayraktar said. He said the two countries’ joint working groups will be activated to finalise various projects in oil and gas infrastructure, exploration, trade, refining, the petrochemical industry and the power sector.
Plan to extend Kirkuk-Ceyhan pipeline
The Kirkuk-Ceyhan oil pipeline is receiving special importance in the talks on Iraq-Turkey energy cooperation. Bayraktar said Ankara considers it important to extend the pipeline to Basra in southern Iraq and to increase its transport capacity. In his view, if this initiative is implemented, a strong alternative to dependence on the Gulf region and the Strait of Hormuz will be created.
This pipeline, stretching from the Kirkuk oilfield in northern Iraq to Turkey’s Mediterranean port of Ceyhan, is one of the most important pieces of infrastructure for Iraq’s oil exports. Through it there is scope to send Iraqi oil overland to the international market.
If the current crisis in shipping in the Strait of Hormuz continues, such alternative export corridors may become even more important for Iraq. At the same time, Turkey too may get the opportunity to further strengthen its position as an important transit hub for the Middle East’s energy supply and trade.
As a result, Friday’s talks are being seen not only as a short-term oil transport arrangement, but also as an initiative to lay the foundation for long-term Iraq-Turkey cooperation across the entire energy sector, including oil, gas, power, refining and petrochemicals.
