Iraq, Saudi Arabia to revive joint oil export pipeline

The Iraqi Pipeline in Saudi Arabia, laid across the kingdom in the 1980s, has not carried Iraqi crude since Saddam Hussein invaded Kuwait in 1990. Photo: AFP Baghdad (IraqiNews.com) – Saudi Arabia has given preliminary approval to revive the joint oil export pipeline project with Iraq, sources told local news outlet Shafaq News on Saturday. The original 1,568-kilometer pipeline—which runs from Iraq’s Zubair oilfield in Basra to the Saudi Red Sea port of Yanbu and has been idle since 1990. Riyadh argues that rehabilitation would cost nearly as much as constructing a new line, and Iraq would have to cover part of the cost for its section. Understandings with Saudi Arabia have emerged as one of the most significant paths through which Iraq intends to revive a historic pipeline that has been idle for more than three decades. The step is part of a larger effort to increase the country’s oil export flexibility. The pipeline passes through key stations in Saudi Arabia, making it one of the longest oil pipelines in the region. Following the Gulf War, the pipeline was shut down in August 1990. It remained out of operation for decades, despite Iraq’s several attempts to restart it. According to reports, the project initially cost over $2.6 billion and features an advanced infrastructure of storage tanks and loading terminals. The infrastructure makes it a compelling option for reuse, contingent upon an agreement between the two parties. This pipeline is a strategic option to export oil through the Red Sea, lessening Iraq’s dependency on the Strait of Hormuz and providing more flexibility in regulating export flows. The revival of the pipeline may boost economic connections between Iraq and Saudi Arabia and offer new options for collaboration in the energy industry, given the rising demand for secure and dependable export routes.