Iraq-Turkey pipeline capacity utilization

Turkey wants an Iraq-Turkey oil pipeline to operate at maximum capacity once it resumes flows through Turkey's Ceyhan, Turkish Energy Minister Alparslan Bayraktar was quoted as saying by the state-owned Anadolu news agency on Sunday.

The pipeline was halted by Turkey in March 2023 after the International Chamber of Commerce (ICC) ordered Ankara to pay Baghdad US$1.5 billion in damages for unauthorized exports between 2014 and 2018.

Turkey has said since late 2023 that it is ready to resume operations at the pipeline, carrying oil exports from the semi-autonomous Kurdistan region. Bayraktar told Reuters last month that Ankara had not received confirmation on resuming flows.

On Friday, eight international oil firms operating in Iraq's Kurdistan region said they would not resume oil exports through Turkey's Ceyhan despite an announcement from Baghdad that the restart was imminent.

"This pipeline has been ready for 1.5 years already. We want the Turkey-Iraq pipeline, especially the two pipelines of 650 km from our Silopi to Ceyhan to be used," Bayraktar said.

"We want some of the oil passing through this line to go to the refinery in Kirikkale, and also via ships through Ceyhan, to refineries in Turkey or to different refineries in the world, so that the capacity of the line can be used at the maximum level," he added.

Bayraktar also said a planned trade route project involving Turkey and Iraq, dubbed the Development Road Project, included the construction of a pipeline reaching the Persian Gulf for the Iraqi oil flows to go to global markets via Turkey.