Bloomberg: Turkey expects crude oil flows from Iraq to continue, despite the expiration of the decades-old Karpuk-Geihan pipeline agreement, as Ankara and Baghdad allow exports to continue and negotiations are underway on a broader energy cooperation agreement.

The Karpuk-Geihan pipeline has a technical capacity of 1.5 million barrels per day, although exports in June averaged about 180,000 barrels per day. The route has become one of several crude oil export corridors in the Middle East that bypass the Strait of Hormuz, and its growing importance is increasing.

Ankara is seeking a new agreement to boost Iraqi crude flows, expand the pipeline to Basra, and broaden energy cooperation. On Monday, the state company TPAO also agreed to buy 15% of the shares of BP Energy Company of Kirkuk Limited, a consortium that is rebuilding oil and gas fields in northern Iraq.

Talks have gained urgency after fighting with Iran severely disrupted maritime shipping through the Strait of Hormuz and increased the strategic importance of land export routes; securing a long-term agreement would strengthen Iraq’s access to international markets and help Turkey establish itself as a key regional energy transit hub.