Jordan and Iraq have announced plans to build an US$18bn pipeline to export crude oil from Basra in southern Iraq to the Jordanian port of Aqaba
An agreement is expected to be reached soon between the two countries to start the process of floating tenders to implement the scheme, Jordanian and Iraqi officials told delegates during the Basra Investment Conference.
Majid Saadi, president of the Iraqi Business Council, said, "The project will help enhance cooperation between the two countries and help boost the Jordanian economy." He also noted that Iraqi investments in Jordan in different sectors currently exceeded US$11bn.
Khalaf Al Khalaf, governor of Basra, said, "The pipeline would be used to export Basra’s crude oil production that stands currently at 2.3mn bpd.
“Basra’s current production of oil accounts for 70 per cent of Iraq’s total oil production…we need a gateway to export this oil and Jordan is the best option.
“In 2017, Basra’s oil production will reach 17mn bpd. Therefore, this pipeline is crucial for Basra’s exports,” he added.
Accordin to Khalaf, the port of Aqaba was a strategic location and the countries were determined to go ahead with the scheme as soon as possible.
The pipeline is expected to generate US$3bn a year in revenues to Jordan, the governor added.
