Iraq is advancing plans to establish a westward oil export system that would transport crude from southern Iraq to the Mediterranean through Syria and Turkey. The initiative involves partnerships with Chevron, Capital TI, and Qatar’s UCC for technical and financial studies on two proposed pipelines, according to a report by OilPrice.com.
Key Details
The first pipeline route would extend from Basra to Haditha and then continue to Turkey’s Mediterranean port of Ceyhan, while the second would traverse Syria to reach the port of Baniyas. KBR is conducting a separate study on the Basra-Haditha section, where construction began in May on a pipeline designed to carry 2.5 million barrels per day.
This week, the U.S. government endorsed the restoration of the Kirkuk-Baniyas line, which has remained largely inoperative since 2003. Chevron is also preparing agreements related to the West Qurna 2 and Nassiriya oilfields, alongside its efforts on alternative export routes outside the Strait of Hormuz. Iraq has begun limited shipments of crude and naphtha through Syrian ports and plans to continue these operations, even if stability returns to Hormuz.
Background
Despite recent drone strikes near Iraq’s Basra Oil Terminal, which is crucial for the country’s oil exports, the Oil Ministry reported that crude loading has continued normally without disruption to exports from southern terminals, which handle over 3 million barrels per day.
The developments could influence oil supply dynamics, particularly for Brent crude, as Iraq seeks to diversify its export routes. Increased capacity through these pipelines may alleviate pressure on the Strait of Hormuz, potentially stabilizing prices. Investors will watch for further updates on the progress of these pipeline projects and any geopolitical developments affecting Iraq's oil infrastructure.