Turkey’s energy ambitions grow with new deals in Libya and Iraq while seeking to bolster regional gas supplies.

Turkey is gearing up to sign agreements for oil and gas exploration in Libya and Iraq, alongside other nations such as Bulgaria, Azerbaijan, and Turkmenistan. This initiative comes as Turkey aims to bolster its energy production, which has largely depended on imports.

According to Turkish Energy Minister Alparslan Bayraktar, a significant agreement with Libya is on the horizon. Libya recently launched its first tender for oil exploration in over 17 years in March 2025. Bayraktar highlighted that Turkey is also keen on exploring hydrocarbon rights in Iraq, signaling a robust commitment to expanding its energy footprint.

Turkey’s energy strategy is aimed at reducing its reliance on foreign oil and gas by ramping up domestic and international production in the coming years. The country aspires to leverage its geographical position to establish itself as a gas hub that connects Europe and the Middle East, thereby enhancing its influence in global energy markets.

In line with this vision, discussions are ongoing with Bulgaria to explore options for increasing gas transmission across their shared borders. This move is intended to boost gas supplies to Europe, which has been seeking alternative energy sources amid ongoing geopolitical tensions.

The relationship between Turkey and Libya in the oil sector dates back to 2022 when they signed a memorandum of understanding to collaborate on oil and gas exploration in Libya’s territorial waters. This cooperation was part of a broader agreement that aimed to demarcate maritime borders, which had previously sparked tensions with countries like Egypt, Greece, and Cyprus.

Despite the historical conflicts, recent diplomatic efforts have seen a thaw in relations between Turkey and Egypt. High-level exchanges have taken place, aimed at reducing tensions and fostering cooperation, particularly regarding the competing interests of both nations in Libya.

Last week, the Turkish National Oil Corporation hosted a campaign in Istanbul to attract investors to the oil sector, following similar initiatives in London and Houston. This outreach is part of Turkey’s broader strategy to enhance its energy capabilities and attract foreign investment.

Meanwhile, in Iraq, the oil relations between Turkey and the Iraqi government have faced challenges since the suspension of oil exports through the Kirkuk-Ceyhan pipeline in March 2023. This halt followed an international arbitration ruling from the International Chamber of Commerce in Paris, which mandated Turkey to pay compensation to Iraq for exporting oil without Baghdad’s consent.

Negotiations are ongoing between Baghdad and Ankara to resume operations on the Ceyhan pipeline, with Iraqi officials expressing optimism about the potential for restarting oil exports from the Kurdistan region. However, financial and legal hurdles continue to complicate the process.

In a recent development, the Iraqi Oil Company announced the discovery of the largest oil reservoir in the Eastern Province of Baghdad, in collaboration with the Chinese company EBS. This discovery is expected to add over two billion barrels to Iraq’s oil reserves, marking a significant boost for the country’s energy sector.

Looking ahead, Minister Bayraktar indicated that the Turkish National Oil Company is set to sign an agreement next month with an unnamed foreign company to explore energy resources in Bulgaria’s Black Sea waters. This agreement is in addition to previous contracts signed with a Shell subsidiary for oil and gas exploration in the same region.

Turkey’s efforts in the Black Sea have already yielded results, as the Turkish oil company commenced gas production from a field in its territorial waters in 2023. The company is also conducting extensive surveys off the coast of Somalia, although there are no guarantees of discovering commercially viable quantities of oil and gas in these areas.

As Turkey continues to navigate its energy ambitions, the interplay of regional politics, international relations, and economic considerations will play a pivotal role in shaping its future in the oil and gas sector. With ongoing negotiations and strategic partnerships, Turkey is positioning itself as a key player in the energy landscape of the Eastern Mediterranean and beyond.

Source: https://evrimagaci.org/