Iraq, Syria sign oil pipeline deal as Baghdad deepens regional ties

Washington (IraqiNews.com) — Iraq and Syria agreed on Thursday to repair and rebuild a long-idled crude oil pipeline that connects the two nations, paving the way for Iraqi petroleum shipments to the Mediterranean as Baghdad strives to boost relations with its western neighbor. The deal was signed in Washington during Iraqi Prime Minister Ali Al-Zaidi’s visit to the US, immediately after returning from discussions with major energy corporations in Houston. Basra Oil Company CEO Bassam Abdul Karim Nasr and Syrian Petroleum Company CEO Yousef Kabali signed the pact on behalf of Iraq and Syria, respectively. The US State Department welcomed the agreement, describing the rehabilitation of the Iraq-Syria crude oil pipeline as a strategic infrastructure project that would reconnect Iraqi oil production with Mediterranean export markets and would be carried out by an international consortium led by the United States. It said that the rebuilt pipeline will initially be capable of delivering up to 2 million barrels of crude oil per day, describing the project as a significant step forward for Iraq-Syria ties and regional economic integration. The pipeline has been out of service for years due to violence, sanctions, and decaying infrastructure, having once connected Iraq’s northern oil reserves to Syria’s Mediterranean coast. Reviving the export route would broaden Iraq’s oil export choices outside the Gulf, lessen dependence on the Strait of Hormuz, and give a direct outlet into Mediterranean markets. U.S. Special Envoy Tom Barrack said that additional pipeline lines between Iraq and Syria will help overcome export interruptions across the Strait of Hormuz and promote stronger economic cooperation between the two nations. He said that revitalizing the Kirkuk-Baniyas pipeline and other routes might potentially give export capacity of up to 2.5 million barrels per day via the Mediterranean or Turkey. The pact is one of the most major regional energy projects announced during al-Zaidi’s tour to the United States, which also included discussions with American energy, technological, and industrial corporations to encourage investment in Iraq’s economy.