IOC holdout, Baghdad-Erbil Disputes Stall ITP Restart Once Again

8 Aug 2025 Issue: 68 / 32 By: Yesar Al-Maleki

Hopes for an imminent resumption of crude exports via the Iraq-Turkey Pipeline (ITP) have once again been dashed, as the IOCs hold out for a lifting agreement and several sticking points between Erbil and Baghdad remain unresolved. A recent proposal by the Kurdistan Regional Government’s Ministry of Natural Resources (MNR) for an interim agreement lacks clarity on critical issues.

Iraqi Oil Minister Hayan Abdulghani announced prematurely in Kirkuk on 6 August that exports would restart “today or tomorrow.” No such restart took place. Similar pronouncements have been a semi-regular feature ever since the ITP was shut in March 2023, but Mr Abdulghani’s latest statement comes amid a renewed effort to reach terms with IOCs following last month’s Baghdad-KRG agreement (MEES, 18 July).

Another complication is pressure from Ankara, which wants to renegotiate the terms of the ITP treaty. Turkey has warned it will not renew the current ITP treaty when it expires in June 2026 and is seeking renegotiated terms (MEES, 25 July). Until a comprehensive deal is reached with all stakeholders — particularly the IOCs — the long-awaited restart is on hold. (CONTINUED - 1705 WORDS)