Turkey is willing to sign a comprehensive energy co-operation deal with Iraq "as soon as possible", President Recep Tayyip Erdogan said after meeting Iraqi Prime Minister Ali Al Zaidi in Ankara on Tuesday.
"The Iraq-Turkey crude oil pipeline agreement ended yesterday," Mr Erdogan said alongside Mr Al Zaidi. "Our aim is to sign a comprehensive energy co-operation agreement that will benefit both sides."
It was expected that the two sides would sign a temporary deal to extend the decades-old pipeline agreement, which governs exports through the pipeline and officially expired on Monday.
Turkish Energy Minister Alparslan Bayraktar held talks in Baghdad this month with Mr Al Zaidi and Iraqi Oil Minister Bassim Al Abadi, and announced that the two countries were set to sign a 12-month deal “in the coming days”.
Energy was expected to dominate the agenda during the meeting between Mr Al Zaidi and Mr Erdogan. Turkey remains Iraq’s most important outlet to global markets, with the Iraq-Turkey pipeline from Kirkuk to Ceyhan historically carrying a significant share of Iraqi exports.
The 970km pipeline has operated on and off since the 1970s and remains central to Iraq’s plans to raise production and diversify export routes away from the Strait of Hormuz. There has been no clarification from either side.
Mr Erdogan also said Turkey's state-owned oil and gas company TPAO would operate in the Kirkuk oilfield that is being developed by BP.
In a statement on X, Mr Bayraktar said TPAO had acquired a 15 per cent stake in BP Energy Company of Kirkuk Limited (BPECKL), adding that this would allow the Turkish company to operate in the field.
"It will work together with BPECKL partners to bring the approximately 3 billion barrel reserve potential into production," he said.
BP confirmed the deal and said it welcomed the partnership with TPAO.
"The agreement builds on a trusted partnership spanning more than 30 years and marks another milestone as we support the next phase of redevelopment in Kirkuk," it said in a statement.
After signing three accords on co-operation in various fields, Mr Erdogan said more agreements were expected, only for his ministers to abruptly brief him on stage and for the two leaders to then speak without further signatures, according to Reuters.
Mr Al Zaidi hailed relations with Ankara and pledged to "further improve these relations and … increase oil flows" to Turkey. He did not elaborate.
Earlier on Tuesday, the Mr Al Zaidi's office said the talks were to focus on “the fields of economy, water, security and investment”. Both leaders were also to discuss “issues of mutual interest related to the region”, its statement added.
The meeting was also to discuss "mechanisms for implementing agreements and memoranda of understanding, and following up on joint infrastructure projects and developing them, in a way that serves the interests of the two neighbouring countries”.
Bilateral trade exceeded $20 billion in 2024, making Turkey one of Iraq’s top trading partners. Turkish construction companies are among the largest foreign contractors in Iraq, working on housing, roads, hospitals and industrial zones, particularly in northern and central provinces.
During the visit, the two sides were also expected to review mechanisms for implementing previous agreements signed under the Development Road project – a proposed $17 billion transport and energy corridor linking the Iraqi port of Al Faw on the Arabian Gulf to Turkey by rail and road.
Baghdad regards the project as a way to position Iraq as a transit centre between Asia and Europe, while Ankara views it as an alternative trade route that bypasses maritime chokepoints.
Iraq has repeatedly raised concerns over reduced flows of the Tigris and Euphrates due to Turkish dams. Previous agreements did not include commitments for sharing data and a minimum release, and implementation has been inconsistent amid drought and climate pressures. Mr Al Zaidi is expected to push for a more binding framework before the dry season.
On security, the two countries share an interest in combatting the Kurdistan Workers' Party (PKK), which maintains bases in northern Iraq. Turkey has carried out cross-border operations against the group, while Iraq has moved to ban the PKK and increase border co-ordination.
Baghdad is engaging with neighbours to stabilise supply chains and investment. The government has in recent weeks held talks with Lebanon and Syria on energy transit and is preparing for a visit to Saudi Arabia focused on Gulf integration.
For Turkey, closer ties with Iraq offer economic opportunities and a chance to secure its southern border. For Iraq, Turkey represents both a vital export route and a major investor at a time when Baghdad is seeking to rebuild infrastructure and create jobs.
