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Iraqi’s oil export pipeline construction nears reality

Saboteurs Slow Iraq's Major Oil ProducerAccording to Nihad Mousa, director general at the Iraqi oil ministry, a number of consortia from different points of the globe have manifested their interest in participating in the construction of the country’s first export pipeline in decades.
Iraq’s oil sector is expected to get a boost in the coming months, as plans are in full gear to build the pipeline expected to run through Jordan according to a senior Iraqi official. An announcement would be made by mid-July to make known the prequalified companies after thorough review of their dossiers is set to commence early next month. The estimated cost of the project is at a colossal $18 billion. Earlier on, in April, a preliminary accord was signed between Iraq and Jordan for the construction of a 1,680-kilometer pipeline spanning from the southern Iraqi oil station of Basra to the Red Sea port of Aqaba in Jordan.  With feasibility studies already underway for a 680 section from Basra to Haditha, work is set to start in earnest soon.
As Iraq slowly rebuilds itself after the American led invasion that ousted President Saddam Hussein, hopes are high for the pipeline. Iraq aims to reduce its dependence on its neighbor, Iran’s export terminals. This would provide an alternative route, as threats by Iran to close the Strait of Hormuz multiple in defiance to international sanctions imposed on the Persian nation for the persistence of its suspected nuclear program.
Deals with global companies are helping Iraq gradually expand its oil sector with production output set to increase by 40% by next year to 4.5 million barrels a day and to double to 9 million by the end of the decade.

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Posted by on Jun 28 2013. Filed under Energy, Headlines. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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