The Iraqi Oil Ministry has confirmed that Turkey has formally proposed a new and expanded energy agreement with Iraq, as the existing crude oil export deal between the two nations is set to expire in July 2026.

The current agreement, initially signed in 1973 and last amended in 2010, will terminate next year, according to an Iraqi Oil Ministry official who spoke to state media. The deal requires either party to provide written notice one year before its expiry if they intend to end it, and Turkey has officially submitted such a notification.

“The Iraqi government initiated negotiations with Turkey in July 2024 to discuss extending and modernizing the agreement,” the official stated. “In response, the Turkish Energy Ministry sent a letter expressing its willingness to renew the deal, alongside a draft proposal for a broader energy partnership.”

The proposed agreement reportedly goes beyond crude oil exports, incorporating cooperation in natural gas, petrochemical industries, and electricity, signaling a deeper economic collaboration between Iraq and Turkey.

The Iraqi Oil Ministry is currently reviewing the draft and negotiating with Turkish officials to finalize terms that align with both nations' interests.

Meanwhile, a decree by Turkish President Recep Tayyip Erdoğan, published in Turkey’s official gazette, confirmed that the 52-year-old oil pact will officially end on July 27, 2026, and will not be renewed under its current conditions.

The original agreement facilitated the construction of a major pipeline transporting Iraqi crude oil through Turkey’s Ceyhan port, with the first phase completed in 1976. The deal was last extended in 2010 for a 15-year period.