Iraq’s cabinet has approved around $1.26 billion for a major oil pipeline project that will largely boost the export capacity of the Southern oil hub of Basra.
The cabinet, which met under Prime Minister Mohammed Al-Sudani on Tuesday, instructed the Finance Ministry to unlock funds for the project which also involves development of a nearby oil export terminal, Aliqtisad News and other newspapers said.
The funds cover the costs of the construction of two pipelines 4 and 5 as part of the ‘Sealine 3’ project that also includes rehabilitation of Khor Al-Amaya oil export terminal and the construction of a new marine platform in Basra Port.
Officials said this month the projects would allow Iraq to increase oil production by 500,000 barrels per day (bpd) and avert the loss of two million bpd if these projects are not executed.
The Iraqi cabinet in July approved the funds for the “Sealine 3” subsea oil export pipeline project, to be carried out by Dutch firm Boskalis, but the funds remained locked by the Finance Ministry.
(Writing by Nadim Kawach; Editing by Anoop Menon)
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