Iraq and Turkey have signed a one-year agreement for the transportation of Iraqi oil through the Kirkuk-Ceyhan pipeline to Turkey’s Mediterranean coast. This decision comes amid unstable oil supplies through the Strait of Hormuz, which have been affected by military tensions between the US and Iran.

According to the terms of the agreement, Iraq will be able to export up to 750,000 barrels of oil per day from the semi-autonomous region of Iraqi Kurdistan, as well as from the north of the country, where the major Kirkuk oil field is located. The new contract was signed after the previous agreement for this pipeline expired.

The document also allows additional time for discussions on a broader cooperation agreement between the two countries, which would cover not only the oil sector but also other areas, including energy and water resources.

Turkey plans to use the Kirkuk-Ceyhan pipeline, which has a capacity of up to 1.5 million barrels per day, at full capacity. In the future, there are plans to transport oil not only from Iraq but also from Kuwait and other Persian Gulf countries to global markets via this route.

In the long term, Turkey aims to receive up to 1 million barrels of Iraqi oil per day, both through the pipeline and by tankers passing through the Strait of Hormuz. This is considered crucial for ensuring stable oil supplies to the country, as Turkish refineries were originally designed to process crude from neighboring states.

The state-owned company Turkish Petroleum (TPAO) is involved in the development of the Kirkuk oil field and neighboring deposits. Last week, TPAO agreed to acquire a 15% stake in the Iraqi operator BP Energy Company of Kirkuk from the British company BP.