July 21, 2025 [Reuters]- Turkey wants to negotiate a new agreement with Iraq to revive operations at an oil pipeline between the two countries that were halted during a dispute over unauthorised Iraqi exports, a senior Turkish official told Reuters on Monday.

In a decision published in its Official Gazette on Monday, Turkey said the existing deal dating back to the 1970s – the Turkey-Iraq Crude Oil Pipeline Agreement – and all subsequent protocols or memorandums would be halted from July 27, 2026.

Iraq and Turkey have been working to resume oil flows from the pipeline running to Turkey’s Ceyhan port following Turkey’s move to halt them in March 2023 after the International Chamber of Commerce ordered Ankara to pay Baghdad $1.5 billion in damages for unauthorised exports between 2014 and 2018.

Turkey has appealed against the ruling.

Ankara has said it is ready to resume operations, but talks to do so hit a snag in March over payments and contracts.

The official said the pipeline had the potential to become a “highly active and strategic pipeline for the region”.

The person added that Turkey had invested heavily in its maintenance, and noted its importance for regional projects like the Development Road – a planned trade route involving Turkey and Iraq.

“A new and vibrant phase for the Iraq-Turkey pipeline will benefit both countries and the region as a whole,” the official said, without giving details of what Ankara wanted the new agreement to include.

There was no immediate comment from Iraq on the decision.