Iraq is moving forward with the $5 billion Basra-Haditha crude oil pipeline project, with a high committee formed to oversee the development of the strategic project, Oil & Gas Middle East reported.
Iraqi Prime Minister Mohammed Shiaa al-Sudani issued a directive to form this committee, to be headed by the Undersecretary of the Ministry of Oil, and includes specialized advisers and senior officials from the Ministries of Oil and Minerals.
And the government approved the allocation of $ 1.5 billion for the project during the current year, to be funded through the mechanism of "oil for reconstruction" between Iraq and China, according to a statement issued by the Prime Minister's Office.
The Basra-Haditha pipeline aims to enhance the flexibility of Iraq's oil exports by allowing the transport of crude to several ports, including the Turkish port of Ceyhan, the Syrian port of Banias, and the Jordanian port of Aqaba. It is also expected to boost refinery supplies in central and northern Iraq, supporting the expansion of local refining capacity.
And earlier this month, the Iraqi cabinet approved amendments authorizing the Ministry of Oil to invite specialized companies directly to submit bids for the project, which extends over a distance of 685 kilometers and has a design capacity of 2.25 million barrels per day.
And during the meeting, officials reviewed the delays associated with the current contracts, and discussed measures to accelerate implementation, including agreements signed between the Basra Oil Company and the Oil Projects Company in August 2024, as well as between the Oil Projects Company and the General Iron and Steel Company in January 2025.
Also in April, Iraq confirmed its intention to invite specialized companies to participate in the implementation of the project, which is expected to provide an alternative route for oil exports away from the Strait of Hormuz, with the possibility of its future extension to Jordan and Syria.
The project coincides with Iraq's efforts to resume exports through the 1.6 million barrels per day Kirkuk-Fishkhabour-Turkey pipeline, as part of a strategy to diversify export routes and reduce dependence on vital sea lanes.
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