Turkey is set to enhance its energy cooperation with Iraq following a significant agreement announced on July 27, 2026. Turkish President Recep Tayyip Erdogan revealed that Turkish Petroleum (TPOA) will acquire a 15 percent stake in the British Petroleum-run Kirkuk oilfield, which is located in northern Iraq. This deal comes as the previous Iraq-Turkey crude oil agreement expired, prompting Turkey to seek a new framework for energy cooperation. Erdogan confirmed that Iraq has offered to supply Turkey with up to 1 million barrels of oil per day, which is expected to meet Turkey's energy needs.
The discussions between Erdogan and Iraqi Prime Minister Ali al-Zaidi also covered various bilateral issues, including security, trade, transport, and water management. The significance of this energy deal extends beyond mere oil supply; it reflects Turkey's strategy to diversify its energy sources amid regional tensions. The ongoing geopolitical situation, particularly the conflict involving the US and Israel against Iran, has made Turkey's proposals for alternative energy routes more appealing to Iraq.
Historically, relations between Turkey and Iraq have been complex, particularly concerning security issues related to the presence of Turkish military forces in northern Iraq. Turkey has maintained approximately 50 military bases in the region to combat the Kurdistan Workers' Party (PKK), which is designated as a terrorist organization by Turkey, the US, and the EU. Despite these tensions, both nations recognize the importance of maintaining strong ties, especially in the context of energy and water resources.
As Turkey and Iraq navigate their relationship, the new energy deal is expected to strengthen their interdependence, particularly as regional dynamics continue to evolve. The collaboration on energy, security, and transportation is seen as a way to bolster Turkey-Iraq ties, which have fluctuated over the past decade but remain a priority for both countries. Erdogan emphasized the importance of dialogue with Iraq to ensure a terror-free region, highlighting the ongoing security concerns that both nations face.
