Iraq has concluded an agreement with Turkey to transport at least 750,000 barrels per day (bpd) of oil from the country via the Kirkuk-Ceyhan pipeline, the office of Iraqi Prime Minister Ali al-Zeydi reported.
"Iraqi and Turkish companies will begin implementing the agreement, and the governments of the two countries, within a carefully planned process, will proceed to finalize a comprehensive framework agreement covering the oil, electricity, and water sectors, as well as other areas of cooperation that promote our common interests and support development and stability," the head of government said.
Turkey's Ministry of Energy reported that the agreement was concluded between state-owned companies Botas (Turkey), the pipeline operator, and SOMO (Iraq) for a one-year term.
"Today, the importance of this pipeline has increased, as it serves as an alternative route during the Hormuz Strait crisis, which has effectively stranded 20 million bpd in the Persian Gulf," said Turkish Energy Minister Alparslan Bayraktar.
The pipeline from Iraq's Kirkuk to the Turkish port of Ceyhan was built in the 1970s. The pipeline's length is 965 km, and its current maximum capacity is about 1.6 million bpd. In recent months, the route has become virtually the only export direction for Iraqi oil due to the blockade of the Hormuz Strait.