Iraq Caps Oil Deliveries to Turkey under Bilateral Agreement
The Iraqi Council of Ministers has capped crude oil deliveries to Turkey under their bilateral Oil-for-Water framework agreement at 33,000 barrels per day (bpd). This decision was made during the council's 18th regular session on September 8, 2026. The move aims to align sovereign crude allocations with actual financing requirements for water infrastructure projects.
The agreement, signed on November 3, 2025, allocates revenue from Iraqi crude oil exports directly to finance modern water management, irrigation networks, and dam rehabilitation executed by Turkish contractors.
As part of the decision, the cabinet also extended emergency mechanisms for crude and product sales to counter maritime transit disruptions in the Strait of Hormuz. Additionally, it authorized advanced contractual agreements with U.S. energy major Chevron and structured inter-ministerial petroleum funding.