Iraq and Turkey have agreed to include the construction of a joint oil refinery in Ceyhan, Turkey, in a planned comprehensive energy agreement expected to be signed next year, according to Iraq’s State Organization for Marketing of Oil (SOMO).
The refinery would process Iraqi crude oil at Turkey’s Mediterranean port of Ceyhan, with refined products intended for export to European markets. Iraqi officials expect the project to generate additional revenues for the country beyond crude oil exports.
The planned refinery is part of a broader agreement that would expand cooperation between Baghdad and Ankara beyond oil transportation to include oil, gas and electricity. The two countries signed a one-year interim agreement in late July to maintain crude oil flows through the Kirkuk-Ceyhan pipeline, while negotiating a longer-term framework.
The pipeline, which connects northern Iraq to Ceyhan, can transport up to 750,000 barrels per day under the interim agreement. The broader energy deal is expected to strengthen Turkey’s role as a transit and processing hub for Iraqi hydrocarbons while providing Iraq with additional options to monetize its crude through refined-product exports to Europe.