Turkiye takes ‘historic step’ on energy alliance with Iraq

Turkey and Iraq have established a significant energy partnership centered on the Kirkuk oilfield in northern Iraq. Turkish Petroleum, the state-owned energy company, will acquire a 15 percent stake in BP Energy Company of Kirkuk Limited through a share-transfer agreement, according to Turkish President Recep Tayyip Erdogan. The arrangement could supply Turkey with approximately 1 million barrels of crude oil daily, addressing Turkey's energy requirements through diversified sourcing.

The agreement emerged during Iraqi Prime Minister Ali al-Zaidi's visit to Ankara, where officials discussed bilateral cooperation across security, trade, transportation, and water management. The new energy framework replaces the Iraq-Turkey crude oil agreement that had operated since 1975 via the Kirkuk-Ceyhan Oil Pipeline, which expired on July 27. Rather than renewing the existing arrangement, both nations opted to establish a fresh cooperation structure.

Analysts emphasize that the partnership extends beyond energy considerations. The arrangement strengthens Turkey's position as a critical transit route for regional trade and energy flows, particularly given geopolitical tensions affecting alternative pathways. The three-dimensional connection—encompassing security, energy, and transportation—deepens interdependency between the nations and reinforces their bilateral relationship amid evolving regional complexities.

Turkey's military presence in northern Iraq, including approximately 50 bases hosting around 5,000 soldiers, remains a sensitive aspect of bilateral relations. The security dimension of the partnership reflects ongoing counterterrorism cooperation, though historical tensions over Kurdish militant groups continue to influence the relationship's trajectory.