Iraq Approved Construction of New Oil Pipeline

SEATTLE (Oil Monster): The new $4.6 billion Basrah-Haditha oil pipeline has been cleared for construction by the Iraqi government. According to local media, the Iraq-China agreement would finance the almost 685-kilometer oil pipeline project, which was created by the state-owned Basra Oil Company and Oil Projects Company.

The contract has been approved by the cabinet. It has also authorized a pipeline purchase order that is 5.5% less expensive than anticipated. To ensure efficient implementation, the project has also been exempted from government execution instructions. It is anticipated that premium materials will be used in the pipeline's construction. The pipeline is expected to be finished in 720 days.

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In August of this year, the pipeline proposal was made with the goal of delivering crude to the central and southern parts of the nation.

The nation produces about 4 million barrels of oil per day (bpd) on average, according to government figures. By 2028, the nation wants to increase its average crude production to around 6 million barrels per day. As a result, in early 2024, Iraq gave various concession sites for gas and oil to international companies. Additionally, it intends to grant new concession sites for gas and oil the next year. According to estimates, the new projects will significantly increase the nation's recoverable oil deposits and add around 3.459 billion cubic feet of gas per day.