Iraq has announced that it will reveal the names of prequalified companies selected to build the country’s first oil export pipeline via Jordan in July 2013
Nihad Mousa, one of the director generals at Iraq's federal oil ministry, said that Japanese, Russian, Chinese and South Korean consortia had submitted documentation to qualify to build the pipeline. Companies from Europe and other locations have also shown an interest, she added.
“We will start reviewing these documents from July 3 and we expect to announce names of prequalified firms in a week or 10 days from that date,” Mousa told Dow Jones Newswires.
The pipeline project is expected to cost around US$18bn.
In April 2013, Iraq and Jordan signed a preliminary agreement to build a pipeline, total length measuring 1,680km, stretching from Basra in southern Iraq to the Jordanian Red Sea port of Aqaba.
The pipeline is expected to make Iraq less dependent on Gulf export terminals, providing the country with an alternative route if Iran closes the Strait of Hormuz.
The proposed pipeline consists of two phases— one that will run from Haditha, northwest of Baghdad, to Aqaba, and carry one million bpd. The second will run from Haditha to the Syrian Mediterranean port of Banias, carrying around 1.25mn bpd.
Following several oil field development deals with some of the world’s largest oil firms, industry sources said that Baghdad is diversifying its export facilities as the country plans to increase its output to 4.5mn bpd in 2014 from 3.2mn bpd currently and to nine million bpd in 2020.
READ MORE...
South Oil Company approval gives Interpipe major Iraq breakthrough
