Turkiye and Iraq Ink Deal to Boost Ceyhan Oil Exports to 750,000 Barrels Per Day

The Iraqi government has signed a one-year agreement with Turkiye to boost oil exports through the Ceyhan pipeline, aiming to reach 750,000 barrels per day. This move will help reduce Iraq's reliance on the Strait of Hormuz for crude shipments, which have been affected by global shipping tensions.

The deal is crucial for Iraq's economy, as it relies heavily on oil revenue for its national budget. The current export capacity via this route is estimated at 200,000 barrels per day, making the new target a significant step towards restoring higher throughput.

The agreement also serves as a diversification strategy for Iraq to build resilience against potential maritime security risks and shipping lane disturbances. Beyond the immediate one-year plan, both countries are exploring long-term projects to enhance regional energy connectivity, including the development of a new pipeline network that could increase Iraqi oil integration into European and Mediterranean markets.