Iraq is moving forward with plans for the $5 billion Basra–Haditha crude oil pipeline, establishing a high-level commission to oversee development of the strategic project, Oil & Gas Middle East reported.
Iraqi Prime Minister Mohammed Shia’ Al-Sudani has ordered the formation of the commission, to be chaired by the Oil Ministry’s Undersecretary and composed of specialized advisers alongside senior officials from the oil industry and minerals ministries.
The government has approved an allocation of $1.5 billion for the project this year, to be financed through the Iraq–China oil-for-infrastructure mechanism, according to a statement from the Prime Minister’s Office.
The Basra–Haditha pipeline is intended to strengthen Iraq’s export flexibility by enabling crude flows to multiple outlets, including Türkiye’s Ceyhan port, Syria’s Baniyas port, and Jordan’s Aqaba port. It is also expected to bolster refinery supply across central and northern Iraq, thereby expanding domestic processing capacity.
Earlier this month, Iraq’s Council of Ministers endorsed amendments authorizing the Ministry of Oil to directly invite specialized companies to bid for the 685‑kilometer pipeline, which is designed with a planned capacity of up to 2.25 million barrels per day (mmbbl/d).
During the meeting, officials reviewed delays associated with existing contracts and outlined measures to accelerate implementation. Updates included agreements signed between Basra Oil Company and the State Company for Oil Projects (SCOP) in August 2024, as well as between SCOP and the State Company for Iron and Steel in January 2025.
Earlier in April, Iraq confirmed plans to invite specialized companies to bid for the pipeline, which is expected to provide an alternative export route to the Strait of Hormuz and could potentially extend toward Jordan and Syria.
The development coincides with Iraq’s efforts to restart exports through the 1.6 million barrels per day Kirkuk–Fishkhabur– Türkiye pipeline, reinforcing its strategy to diversify export routes and lessen dependence on key maritime chokepoints.
