Iraq and Turkey agreed on 1 August to a one-year ‘crude oil transportation agreement,’ permitting the continued export of crude oil from northern Iraq to Turkey’s Ceyhan terminal. The 1973 Iraq-Turkey Pipeline (ITP) treaty had expired on 27 July. The new interim contract will allow the two parties to negotiate a new ‘framework agreement’ that Iraq’s oil ministry said would include “oil, electricity and water resources.” The signing had been held up by disagreements between the two countries (MEES, 31 July).
Under the agreement, minimum exports have been set at 750,000 b/d, well above Iraq’s ability to supply. Exports were just 181,000 b/d last month. Baghdad faces pressure to keep the ITP running since it currently is its main market outlet. (CONTINUED - 120 WORDS)