The deal would mean Iraq could export another 1 million barrels of oil per day through its northern transit networks.
Around 500,000 barrels per day travels currently through the Kirkuk-Yumurtalik pipeline. Construction of a second pipeline may be needed as Iraqi oil production increases, the Turkish energy minister said.
Yildiz added that energy cooperation with Iraq involved more than just oil, Turkey's daily newspaper Today's Zaman reports.
"The crude pipeline is not enough for mutual relations," he was quoted as saying. "Natural gas must be included, too."
The Nabucco pipeline, which would travel through Turkey, depends in part on natural gas from Iraq and feeder lines through the country and from Georgia.
Notable deaths of 2014 [PHOTOS]
EIA: Russia diversifying energy production