Turkiye and Iraq announce new energy cooperation tied to Kirkuk oilfield stake

Turkiye and Iraq have announced a new energy cooperation framework that includes a Turkish stake in the Kirkuk oilfield and a possible increase in Iraqi oil supplies to Turkiye. The announcement was made in Ankara during a joint news conference between Turkish President Recep Tayyip Erdogan and Iraqi Prime Minister Ali al-Zaidi. It comes as the long-running Iraq-Turkiye crude oil agreement expired on 27 July.

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Erdogan said state-owned Turkish Petroleum will acquire a 15% stake in BP Energy Company of Kirkuk Limited under a separate share-transfer agreement. He also said al-Zaidi had offered to supply Turkiye with up to 1 million barrels per day of oil. According to Erdogan, that volume would meet Turkiye's needs if the transfer goes ahead.

The talks also covered bilateral security, trade, transport and water management, alongside the new energy arrangement. The timing gives the announcement added weight because the previous crude oil agreement had governed the Kirkuk-Ceyhan Oil Pipeline, which was operationalised in 1975 to move Iraqi crude to the Turkish Mediterranean terminal of Ceyhan. Turkiye said it was seeking a new energy cooperation framework rather than simply renewing the old deal.

The pipeline has long been central to the two countries' energy relationship, and the latest talks suggest both sides are trying to reset that relationship on broader terms. The proposed supply level is significant because it would deepen Iraq's role in Turkiye's energy mix while also linking the deal to wider regional considerations. One analyst cited in the report said the significance of the arrangement goes beyond energy, pointing to security and the development road project.

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The same analysis said Turkiye is diversifying its energy sources and that changing conditions around the Strait of Hormuz have made alternative energy and trade routes more attractive. The report also said the broader regional context has pushed Baghdad to press for the resumption of oil exports through the Iraq-Turkiye pipeline after years of suspension. It noted that relations between Turkiye and Iraq have fluctuated over the past decade, but that the current talks reflect a three-part connection involving security and defence, energy, and transportation.

Those links are now being presented as mutually reinforcing as both governments look for more stable cooperation. It remains unclear how quickly the share transfer will be completed, whether the proposed oil supply volume will be finalised, and what exact terms will govern any new framework. It is also not yet clear how the new arrangement will interact with existing export routes and commercial obligations.

The next stage will depend on whether the two sides can turn the political announcement into binding agreements and operational deliveries.

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