Iraq to ‘complete oil pipeline to Jordan soon’

pipeline iraq-kevin abbot sxc optIraq has said the completion of the US$18bn 'high priority' pipeline to export crude oil from Basra to Jordan’s Aqaba is likely to be implemented soon

Nidal Al Sabbah, chief engineer and project manager for the Iraqi State Company for Oil Projects, said, "We consider the project as one of the top projects and are keen to implement soon."

The double pipeline will supply Jordan with crude oil and natural gas and is expected to be operational by the end of 2017.

The 1,680km pipeline will pump one million barrels per day from Basra to Aqaba Port and around 7.3mn cubic metres of gas. About 150,000 barrels of oil will meet Jordan’s daily needs, while the rest will be exported through Aqaba.

Sabbah added that a total of 12 companies have been shortlisted to build the pipeline, including Russia’s Lukoil, China National Petroleum Corporation (CNPC), Japan’s Marubeni Corporation and Mitsui, Toyota Tsushu, a consortium of Punj Lloyd from India and Mass Global International from Iraq, Italy’s Saipem, South Korea’s Daewoo International Corporation, Consolidated Contractors Company (CCC) of Greece, a consortium of Go Gas from India, Larsen & Toubro (L&T) from India, Fius Capital from Dubai, a consortium of Petrofac from UK and Stroygazconsulting (SGC) from Russia and Egypt’s Orascom and Petrojet.

The companies will be invited to submit their offers to build the pipeline from Basra to Haditha by the end of 2013, the project manager said.

The pipeline from Basra to Haditha in Iraq will be built on the engineering, procurement and construction basis at the expense of the Iraqi government, while from Haditha to Aqaba it will be built on a build, operate and transfer basis.

The project also includes extending a sub-line to Jordan’s sole refinery in Zarqa.

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