Turkey, Iraq renew Kirkuk-Ceyhan crude oil pipeline deal

Energy Minister Taner Yildiz and Iraqi Oil Minister Husain al-Shahristani yesterday attended the signing ceremony of an agreement extending the Kirkuk-Ceyhan Crude Oil Pipeline deal in Baghdad by 15 years. Iraq is one of the key partners in Turkey's energy policies, Yildiz argued, stressing that the Kirkuk-Ceyhan pipeline is a crucial element of bilateral energy ties. Yildiz also reiterated Turkey's hope for negotiations with Baghdad on certain oil and natural gas projects. For his part, Shahristani stressed provisions in the new deal against confiscation. "From now on, there will be no confiscation of Iraqi oil passing through Turkey, as the Turkish government has provided guarantees on this issue," he said. Some 500,000 barrels of oil currently flow through the Kirkuk-Yumurtalik pipeline, and the construction of a second pipeline may be needed if Iraqi oil production rises.