Türkiye has reportedly submitted a draft proposal to Iraq aimed at renewing and broadening their existing energy agreement, according to a Reuters report.

The proposal encompasses cooperation in sectors such as oil, gas, petrochemicals and electricity.

This development follows Ankara's announcement of the termination of the long-standing Kirkuk-Ceyhan oil pipeline agreement.

An official from the Iraqi Oil Ministry has indicated that the ministry is currently assessing the Turkish proposal.

The official was quoted by the news agency as saying, “The Ministry of Oil is in the process of reviewing the draft agreement sent by the Turkish side and negotiating with them regarding it to reach a formula that serves the interests of Iraq and Turkey”.

The 1.6 million barrels per day Kirkuk-Ceyhan pipeline has been out of operation since 2023.

An arbitration court ordered Türkiye to pay $1.5bn (Tl60.62bn) in damages for unauthorised Iraqi exports between 2014 and 2018, a ruling which Türkiye is contesting.

Despite the pipeline's current inactivity, a senior Turkish official expressed Türkiye's desire to restore the oil conduit.

Türkiye's decision to end the existing Türkiye-Iraq crude oil pipeline agreement from 27 July 2026 was published in its Official Gazette. The termination includes all related protocols and memorandums dating back to the 1970s.

Efforts to resume oil flows through the pipeline have been ongoing.

Ankara announced in late 2023 that the pipeline was ready to transport Iraqi oil, but negotiations involving Baghdad, the Kurdistan Regional Government and independent oil producers have yet to yield an agreement.

The Turkish official highlighted the pipeline's potential as a “highly active and strategic pipeline for the region”, citing significant Turkish investment in its maintenance and its role in regional projects such as the Development Road.

“A new and vibrant phase for the Iraq-Turkey pipeline will benefit both countries and the region as a whole,” the official remarked, hinting at the broader implications of the proposed agreement.

The Development Road initiative, which Türkiye sees as an opportunity to extend the pipeline further south, involves a high-speed road and rail link from Basrah in Iraq's to the Turkish border and eventually to Europe.

Baghdad had already allocated initial funding for the project in 2023.