Iraq and Turkey discussed preparing a new agreement aimed at raising oil export capacity via the port of Ceyhan to 1.5 million barrels per day, double the current ceiling of 750,000 barrels per day, the Iraqi Oil Ministry said Saturday.
The talks came as Baghdad seeks to provide an additional route for its exports amid shipping disruptions through the Strait of Hormuz and a decline in exports from southern fields.
New framework agreement
The ministry said Iraqi Oil Minister Bassem Mohammed Khudair al-Abadi discussed with Turkish Energy Minister Alparslan Bayraktar, during his visit to Turkey, continuing work on the draft Iraqi-Turkish agreement to export oil via Ceyhan, as well as increasing export capacity through the pipeline.
The talks followed the signing of an agreement between Turkish pipeline operator BOTAS, Iraq's State Organization for Marketing of Oil (SOMO) and the Iraqi National Oil Company, after the previous agreement between the two countries expired on July 26.
The Iraqi oil minister had said the agreement set the current export capacity ceiling via Ceyhan at 750,000 barrels per day, with the two countries to work on preparing a new framework agreement based on an update of the 1973 agreement.
An additional route for Iraqi exports
Sleim al-Rikabi, a spokesman for Iraq's Oil Ministry, said earlier that Baghdad was targeting oil exports via Ceyhan of 750,000 barrels per day, which would help offset part of the decline in exports from southern fields through the Strait of Hormuz.
The Ceyhan pipeline has a technical capacity of 750,000 barrels per day, but exports through it have not exceeded 170,000 barrels per day since the crisis began, despite a target of 250,000 barrels per day.
Participation by Turkish companies
The talks also covered the participation of Turkish companies in Iraqi oil and gas projects, as part of the government's efforts to attract qualified companies to develop and invest in the sector's resources.
The Iraqi oil minister said the two sides had formed two joint technical committees: the first is responsible for investing in oil fields, while the second focuses on developing and building infrastructure for oil facilities.
The two sides also discussed strengthening partnerships between Iraqi and Turkish companies in the energy sector as part of Baghdad's plans to increase production, develop infrastructure and diversify oil export routes.
