Iraq Turkey Pipeline Agreement

In April, the PTI transported 392,000 barrels of crude oil and 86,000 bpd of Kirkuk crude, for a total of 478,000 bpd. The sudden loss of these flows would be strongly felt, not least because the United States recently accelerated its campaign to reduce Iran`s oil exports to zero in response to the regime`s regional and nuclear policy. Stopping the ITP would make it more difficult for Turkey and The Mediterranean market for iran`s medium-sized raw materials to be weaned. Currently, the pipeline is the largest source of crude oil in Turkey and supplies 24 percent of its imports in March. But Russia and Iran, which supply 15 per cent and 12 per cent of Turkish oil respectively (with 53 per cent and 20 per cent of its natural gas imports respectively), are waiting for the succession of Iraq`s market share. Neither Washington nor Erdogan wants Turkey to become more dependent on the energy of these two actors. Iran will benefit the most from a shutdown of the ITP, which would strengthen its East-West energy export strategy against the U.S. preferential agreement on south-north exports from Iraq to Turkey. Russia is trying to convince the parties concerned to abandon the new pipeline project and complete the pipeline through Syria. However, the security situation on Syria`s borders is unstable and the high cost of the project could delay it by several years. The swap contract was originally due to come into force by the end of January 2018, and talks on Kirkuk`s oil trade date back to Iran years ago, when oil fields in northern Iraq were traded only by Turkey and Iraq was considering cheaper means and creating a competitive environment. Previous negotiations between the two countries had even proposed the construction of a new crude oil pipeline linking Kirkuk to Kermanshah, replacing the oil swap route from Turkey, but the idea has not been updated. The KRG pipeline is 60% owned by Rosneft and 40% owned by the Private Kurdish company KRG Group.

Capacity was expanded to 1 million b/d in November, shortly before new exports began. krg, oil pipeline, Iraqi oil, Iranian oil, Iraqi-Turkish relations, Erbil Iraq and Turkey are building a brand new pipeline that will transfer oil from Kirkuk to Turkey and attach it to the existing pipeline network in Iraq. Turkey has begun negotiations to maximize the potential and real potential of The Iraqi oil exchange in terms of political and economic benefits, but Iranian oil officials appear to be implementing the same agreement as oil tankers. The stability of the infrastructure is sufficient because the two countries are not investing in the construction of a new oil pipeline between Kirkuk and Kermanshah. Some analysts said the construction of the second pipeline was also political because Baghdad was not satisfied with the management of oil oil in northern Iraq and Erbil`s control over the previous pipeline, which is why it had begun building a second oil pipeline. While Kirkuk oil was to be exported to world markets through Iran`s agreement with the Iraqi central government, the Iraqi KRG prepared its export infrastructure via Turkey. The pipeline has been extended to the Turkish port of Ceyhan and its capacity has increased considerably. The aim is to respond to the growth in oil production and exports in the Kurdish region, as well as the arrival of Kirkuk oil in the pipeline. After the Iraqi region of Kirkuk was liberated from the Occupation of the Kurds and its army entered the strategic city, control of the Kirkuk oil field, previously held by the Kurds, was taken by the Iraqi central government.

The new pipeline will be the second between countries. The original, commissioned in 1976, was damaged several times by fighting.