Iraq shortlists firms to build US$18 billion oil pipeline

In April, Iraq and Jordan signed an agreement to construct a 1680 km pipeline from Basra to Jordan’s Aqaba Port. It was agreed that the Iraqi government would finance the construction of the pipeline from Basra to Haditha.

Earlier this week, the Oil Ministry announced Iraq’s decision to short-list 12 international companies to build the country’s pipeline. The selected companies have been chosen from a set of 80 international companies, who submitted their credentials earlier this year. The State Company for Oil Projects (SCOPP) has asked the companies to submit their bids by the end of the year.

The US$18 billion pipeline project is set to make Iraq less dependent on Persian Gulf export terminals, providing the country with an alternative route if Iran closes the Strait of Hormus. Under the agreement signed in April, Iraq will supply Jordan with 150 000 bpd. Iraq will also supply Jordan with 100 million ft3 /d of gas, via another pipeline that will be built parallel to the oil line.

A spokesman for the oil ministry said, "It's a pre-emptive plan to absorb higher production that international oil companies are planning to achieve by 2017. More export outlets mean more safety for Iraq's exports and its customers".

According to Iraqi officials, the pipeline project will create over 10 000 jobs in Iraq and Jordan and will be operational by the end of 2017.

Edited from various sources by Hannah Priestley-Eaton

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