Syria and Iraq Finalize Deal to Restore Key Oil Pipeline Within Three Years

Syria and Iraq are nearing the final stages of contract negotiations to revive a critical oil pipeline, with the project expected to take approximately three years to complete. This initiative aims to restore the Haditha-Banias pipeline, enabling the transport of Iraqi crude oil to Syria's Mediterranean coast for export.

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negotiations have begun to finalise the contract

The memorandum of understanding signed last month between Damascus and Baghdad paves the way for a consortium, including Chevron, to undertake the restoration. The U.S. State Department has welcomed the plan, recognizing its "bilateral and regional strategic significance." Syrian Petroleum Company CEO Youssef Qablawi indicated that contract finalization could occur within three months, followed by engineering studies and restoration work.

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three years at most

Originally built in 1952, the pipeline ceased operations in 2003 following damage during the U.S. invasion of Iraq. Qablawi highlighted its importance, estimating its capacity at 1.5 to 2 million barrels per day and projecting significant revenue generation. The project's revival is particularly timely given the ongoing Middle East war and the resulting closure of the Strait of Hormuz, which has disrupted Iraqi oil exports.

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a vital project

Syria's new authorities, seeking to revitalize the nation's economy after years of conflict, are prioritizing infrastructure development. Having recently gained control of oil and gas fields in the northeast, including Rmeilan, Syria aims to boost its oil production significantly. HKN Energy, a Texas-based firm, is involved in operating these fields and repairing existing wells, contributing to Syria's goal of producing one million barrels of oil per day by 2030.

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between 1.5 million and 2 million barrels a day