Türkiye's State-Run Oil Company Takes Stake in Iraqi Consortium

Türkiye and Iraq have strengthened their energy partnership by signing an agreement that allows Türkiye's state-run Turkish Petroleum Corporation (TPAO) to take a 15% stake in BP Energy Company of Kirkuk Limited (BPECKL), a consortium led by British energy giant BP and including ConocoPhillips. The deal marks the first time TPAO has invested directly in Iraq's oil fields, aiming to increase production at several major fields.

The partnership will focus on developing the Baba and Avanah domes, as well as the Bai Hassan, Jambur, and Khabbaz fields in Kirkuk. These fields currently produce around 300,000 barrels of oil per day (bpd). Erdoğan described the agreement as 'historic', while Energy Minister Alparslan Bayraktar said TPAO will work with its partners to bring approximately $3 billion worth of reserve potential into production.

The deal comes after the expiration of a 1973 bilateral agreement that allowed for crude oil transportation through the Iraq-Türkiye pipeline. The neighbors are expected to sign an interim arrangement to keep the Kirkuk-Ceyhan pipeline open, with TPAO's presence in the region seen as strategically important for Türkiye's energy security.