The Wall Street Journal has reported that Chevron is in talks with Iraq to find new routes for the country’s oil exports that bypass the Strait of Hormuz. One of the possibilities mentioned is a revival of the defunct Kirkuk-Baniyas pipeline.
The Kirkuk-Baniyas pipeline moved oil from Iraq’s oil fields near Kirkuk to the Syrian coastal city of Baniyas, but was damaged in the 2003 invasion of Iraq by the United States. Another section of the pipeline branches off and travels to the coast of Lebanon.
On June 15, Iraq’s Prime Minister Ali Al-Zaidi and American Presidential Envoy Tom Barrack met to discuss the countries’ ongoing partnership, and during the meeting, they discussed the Kirkuk-Baniyas pipeline. A post-meeting press release explained:
The Prime Minister reaffirmed Iraq’s commitment to deepening trade and investment relations between the two countries, and Special Presidential Envoy Barrack welcomed this shared approach. They commended the Iraqi decision to finalize the operating license for Starlink to offer worldclass internet services for Iraqi consumers; to launch negotiations with Chevron to develop the West Qurna-2 and Nasiriyah oil fields for the benefit of both sides; to enable U.S. companies HKN, Western Zagros, and Hunt to resume operations with full security guarantees; and to advance a memorandum of understanding with TI Capital to rehabilitate the Kirkuk-Baniyas Pipeline as a vital oil export route. The Prime Minister and Special Presidential Envoy also reaffirmed the shared commitment to increase U.S.-Iraq commercial cooperation to support Iraq’s electricity needs, including through Excelerate Energy’s project to develop an integrated LNG import terminal at Khor Zubair.
The consortium will carry out technical and financial feasibility studies to compare routes, including Basra-Haditha-Kirkuk-Ceyhan and Basra-Haditha-Baniyas, according to a statement released by the Prime Minister’s Office (PMO).
The Iraqi oil ministry would not have any financial or contractual responsibilities under these agreements, according to the statement.
The Iraqi cabinet also authorized BOC to sign a consultation deal with US-based KBR for the Basra-Haditha pipeline project.
The Basra-Haditha-Kirkuk-Ceyhan route serves as a crucial strategic infrastructure corridor designed to circumvent insecure maritime routes and enhance the country’s options for crude oil exports.
In early April, the Iraqi cabinet authorized the Oil Ministry to invite specialized companies to submit proposals for the Basra-Haditha pipeline project. This project has the potential to be extended toward both the Syrian port of Baniyas and the Jordanian port of Aqaba, thereby providing direct routes to European markets via the Mediterranean and the Red Sea.
According to reports, the project is an Iraqi venture estimated at $4.6 billion aiming to transport crude oil from the southern Iraqi province of Basra to Haditha in the western province of Anbar.
