Iraq, Syria To Sign MoU For Mediterranean Oil Pipeline To Diversify Export Routes

Iraq has approved plans to sign a memorandum of understanding (MoU) with Syria to build an oil pipeline connecting Iraqi oil production sites to global export markets through the Mediterranean, as Baghdad looks to diversify its crude export routes and expand its energy infrastructure.

The Iraqi cabinet authorised the director general of Basra Oil Company to sign the MoU with Syria’s Ministry of Energy, according to an official cabinet statement issued after a series of energy-related decisions approved on Saturday.

If completed, the pipeline would give Iraq another route to export crude through the Mediterranean, reducing its reliance on Gulf export terminals and the Iraq-Turkey pipeline to the Turkish port of Ceyhan, which has faced repeated disruptions.

The cabinet did not provide details on the pipeline’s capacity, financing or construction timeline.

The proposal is part of a effort by Iraq to strengthen its oil and gas sector, expand export options and attract foreign investment.

Iraq and Syria have been discussing the revival of energy ties since the toppling of former Syrian President Bashar Al Assad. A pipeline once carried Iraqi crude from Kirkuk to the Syrian port of Baniyas on the Mediterranean, but it was shut down because of war and sanctions.

In recent years, Baghdad has sought to reconnect energy infrastructure with neighboring countries as part of efforts to secure more stable export routes.

The Iraqi government also instructed the oil minister to sign a separate MoU with a consortium comprising ConocoPhillips, TI Capital and Novaterra to begin discussions on exploring and developing the Akkas gas field and surrounding areas.

Located near the Syrian border, Akkas is one of Iraq’s largest undeveloped gas fields and is considered important for reducing the country’s dependence on imported gas.

In addition, the cabinet approved plans to invite bids for the Integrated Qayyarah Project, which aims to further develop Iraq’s oil infrastructure and increase production capacity.

It also approved a recommendation to tender the drilling of an exploratory well at Qara Tappah and endorsed integrated field management and engineering contracts for the West Qurna-2 oil field, operated by Basra Oil Company.

Separately, Iraq approved the activation of the Iraq-Turkey framework agreement on water resources, with financing arrangements for projects under the agreement set to take effect on Sept. 1.

The latest decisions are part of Iraq’s wider plan to expand oil and gas development, open new export routes and bring in international companies to develop the country’s energy resources.

The measures follow Iraqi Prime Minister Ali Al Zaidi’s visit to Washington this month, where Oil Minister Bassem Khudair said Iraq signed memoranda of understanding on energy projects worth $200 billion with U.S. companies.

Khudair said the agreements, which are still at the MoU stage, are intended to increase Iraq’s crude production and help the country achieve natural gas self-sufficiency by 2030.

He also said Iraq is holding “serious and constructive talks” with OPEC on increasing the country’s crude production quota.

“The government remains committed to securing the export share Iraq deserves, while taking into account the exceptional circumstances the country has endured as a result of wars and the destruction of its infrastructure,” Khudair said in remarks carried by the Iraqi News Agency.

He added that Iraq remains on track to achieve natural gas self-sufficiency by 2030 through new energy projects.

Iraq, OPEC’s second-largest producer, has also been affected by the conflict involving Iran. According to OPEC data cited by Iraqi officials, the effective closure of the Strait of Hormuz reduced Iraq’s oil exports from about 4.2 million barrels per day in February to around 1.45 million barrels per day in May.

The Iraqi government has not released further details on the proposed Syria pipeline. However, the latest approvals mark another step in Baghdad’s efforts to expand export routes, strengthen energy infrastructure and increase oil and gas production through regional cooperation and international investment.

References: Bloomberg, Hindustan Times