Iraq is setting up a dedicated high-level commission to oversee the development of the $5 billion Basra–Haditha crude oil pipeline project

At a special meeting on Sunday, Iraq’s Prime Minister Mohammed Shia' Al-Sudani directed the formation of the commission, which will be chaired by the Undersecretary of the Ministry of Oil and include specialised advisers to the Prime Minister, along with director-generals from the Oil ministry and Industry and Minerals ministry.

The meeting also approved allocation of $1.5 billion for the project during the current year with funding to be provided through the Iraq-China oil- for-infrastructure mechanism, according to a statement issued by the Prime Minister’s Office.

It said the Basra-Haditha line is designed to improve export flexibility by enabling crude flows toward Ceyhan port in Turkey, Baniyas port in Syria and Aqaba port in Jordan.

The pipeline is also expected to strengthen supply to refineries in central and northern Iraq and support higher domestic refining output, the statement added.

Project scope

Earlier this month, Iraq’s Council of Ministers approved amendments allowing the Ministry of Oil to directly invite specialised companies to bid for the 685-kilometre pipeline.

Planned capacity is up to 2.25 million barrels per day (bpd).

Existing contracts reviewed

During the meeting, the ministers of oil, and industry and minerals presented causes of previous delays and proposed measures to accelerate execution.

Officials reviewed progress on two implementation contracts: the first, signed 11 August 2024 between Basra Oil Company and State Company for Oil Projects (SCOP), and the second, signed on 7 January 2025 between SCOP and the State Company for Iron and Steel.

Broader export strategy

The move comes as Iraq also nears restart of crude exports through the federally owned 1.6 million bpd Kirkuk-Fishkhabour-Turkey pipeline, highlighting Baghdad’s push to diversify and restore northern and western export routes.

(Writing by N Saeed; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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