Turkiye is set to strengthen its energy ties with Iraq by acquiring a 15 percent stake in the BP-run Kirkuk oilfield in northern Iraq, potentially securing up to 1 million barrels per day of Iraqi oil. This development was announced by Turkish President Recep Tayyip Erdogan during a joint news conference with Iraqi Prime Minister Ali al-Zaidi in Ankara on Tuesday, July 29, 2026.

The stake acquisition will be made by state-owned Turkish Petroleum (TPOA) under a separate share-transfer agreement with BP Energy Company of Kirkuk Limited. The visit by Prime Minister al-Zaidi focused on discussions around bilateral security, trade, transport, water management, and a new energy deal.

This move coincides with the expiration of the Iraq-Turkiye crude oil agreement on July 27, 2026, which since 1975 had facilitated the flow of Iraqi crude oil through the Kirkuk-Ceyhan Oil Pipeline to the Turkish Mediterranean terminal of Ceyhan. Instead of renewing the old agreement, Turkiye is pursuing a new energy cooperation framework with Iraq.

President Erdogan emphasized that once Turkiye transfers 1 million barrels of oil daily from Iraq, it will meet the country's needs. He clarified that this initiative is not meant to replace existing deals but to diversify energy sources, especially given the strategic challenges posed by the closure of the Strait of Hormuz amid the ongoing US-Israel conflict with Iran.

The heightened importance of Turkiye for Baghdad was underscored by Iraq's push to resume oil exports through the Iraq-Turkiye pipeline after years of suspension. Additionally, in mid-2025, the PKK announced its disarmament as part of a peace deal with Ankara to end decades of conflict, though Turkiye continues to view the group's presence in northern Iraq as a security threat.

Sources