Baghdad (IraqiNews.com) — Iraq and Turkey have restarted attempts to revive and extend oil shipments via the Iraq-Turkey Pipeline to the Turkish Mediterranean port of Ceyhan, a move that may deliver a big boost to Iraq’s economy after months of interruption to exports via the Strait of Hormuz.
Prime Minister Ali Al-Zaidi had a phone discussion with Turkish President Recep Tayyip Erdogan, during which the two leaders reviewed bilateral ties and measures to deepen cooperation in numerous areas, including the problem.
The talks centered mainly on oil exports via the Kirkuk-Ceyhan pipeline and on cooperation to boost Iraqi petroleum supplies to Europe.
The route has gained more significance for Iraq as tensions in the area and interruptions in the Gulf have underscored the country’s substantial dependence on southern export ports and marine routes.
For Iraq, the restoration and expansion of exports via Turkey would offer a vital alternative outlet for crude oil, the source of the overwhelming bulk of government earnings.
The problem has become more important due to difficulties arising from the closure and instability around the Strait of Hormuz, which affected Iraqi export flows and put further strain on national finances.
The two presidents also addressed water cooperation and emphasized the need for ongoing conversations to secure agreements that serve the interests of both nations.
The talks also discussed possible cooperation deals in the domains of natural gas and agriculture as Baghdad and Ankara aim to enhance their economic ties.
Another significant subject was the Development Road project, a multi-billion-dollar transit corridor linking Iraq with Turkey and Europe.
Both parties reiterated their commitment to advancing the project, which they called a major effort that may change the logistics and commercial landscape throughout the area.
At the end of July, Erdogan reiterated an invitation to Al-Zaidi to visit Ankara, where both parties are anticipated to resume talks on cooperation on energy, infrastructure development, and execution of the Development Road project.
Al-Zaidi also welcomed Turkish enterprises to increase their investments in Iraq, with prospects in many areas, underlining the vital role of the private sector in deepening economic links between the two neighboring nations.
The discussions highlight Iraq’s increasing attention to diversifying export channels and establishing economic alliances as the nation strives to counter weaknesses revealed by recent regional turmoil and protect the oil earnings that remain the backbone of the economy.