---
title: "Turkey and Iraq Extend Kirkuk-Ceyhan Pipeline Contract: Strategy to Bypass the Strait of Hormuz"
description: "Turkey and Iraq have extended the contract for the operation of the Kirkuk-Ceyhan oil pipeline for another year 🛢️🇹🇷🇮🇶. This decision guarantees an alternative export route for Iraqi oil amidst risks to shipping in the Strait of Hormuz. The pipeline's potential is up to 750,000 barrels per day, which is critical for the stability of supplies to global markets. ⚖️🚢"
date: 2026-08-01T23:22:00.000Z
lang: en
url: https://xab.info/en/posts/turkey-and-iraq-extend-kirkuk-ceyhan-pipeline-contract-strategy-to-bypass-the-strait-of-hormuz
tags: [iraq, turkey, oil-pipeline, kirkuk, ormuz-strait]
publisher: "XAB.info"
---

# Turkey and Iraq Extend Kirkuk-Ceyhan Pipeline Contract: Strategy to Bypass the Strait of Hormuz

![Kirkuk-Ceyhan oil pipeline: pipes with shut-off valves against the backdrop of an oil refinery, illustrating the strategic route for transporting oil from Iraq to Turkey](https://xab.info/media/2026/08/01/turciya-i-irak-prodlili-kontrakt-na-nefteprovod-kirkuk-dzhehan/turciya-i-irak-prodlili-kontrakt-na-nefteprovod-kirkuk-dzhehan-1.webp)

Turkey and Iraq have reached a significant agreement to extend the contract governing the operation of the Kirkuk-Ceyhan oil pipeline by one year. This decision secures an alternative route for Baghdad to export oil to the Mediterranean Sea, becoming a critical factor amidst growing risks to maritime shipping in the Strait of Hormuz.

According to reports, the parties agreed on a temporary extension of the document, which expired on July 27. The new agreement will take effect retroactively, covering the period following the end of the previous agreement, which had been in force for 53 years. During the negotiations preceding the signing, the transportation of hydrocarbons through the pipeline did not cease, allowing for the avoidance of supply disruptions.

### Potential and Limitations of the Route

Salim Al-Rikabi, a spokesperson for the Iraqi Ministry of Oil, confirmed that the new arrangement allows for the reservation of export capacity of up to 750,000 barrels of oil per day. However, he clarified that actual delivery volumes will vary depending on several key factors:

    - Security situation in the region;

    - The speed of full production recovery in the fields of Iraqi Kurdistan;

    - The completion of necessary infrastructure construction.

The oil pipeline connecting the Iraqi city of Kirkuk with the Turkish Mediterranean port of Ceyhan is 986 kilometers long. As noted by Bloomberg, the extension of the agreement ensures the stability of Iraqi oil exports via the land route. This is particularly relevant against the backdrop of supply disruptions through the Strait of Hormuz caused by escalating regional tensions and conflict with Iran.

### Investments and Infrastructure Projects

The temporary agreement was concluded against the backdrop of increased Turkish investment in the region's energy sector. The state-owned company Turkiye Petrolleri AO (TPAO) announced the acquisition of a 15% stake in the BP Energy Company of Kirkuk Limited consortium, which is engaged in the reconstruction of oil and gas fields in Kirkuk. The financial terms of this deal have not been disclosed by the parties.

Turkish Energy Minister Alparslan Bayraktar confirmed the pipeline's throughput capacity in his account on the social network X, although the Turkish Ministry of Energy has not provided official comments on the details of the deal.

Parallel to this, Iraq is constructing a new pipeline connecting Basra with Kirkuk. Once this artery is commissioned, export capabilities via the Ceyhan route are expected to increase significantly.

### Geopolitical Context

The decision to extend the contract fits into the complex geopolitical picture of the Middle East. The reminder that Iran rejected Oman's proposal for an equal division of control over the Strait of Hormuz threatens hopes for the resumption of negotiations between Tehran and Washington. Previously, Oman presented Iran with a plan supported by Gulf states, which included issues of shipping and the collection of voluntary contributions for the use of the strait. Under these conditions, the land route through Turkey becomes a strategic asset for the Iraqi economy.