Shafaq News- Washington
Iraq plans to diversify its oil and gas export routesthrough a new pipeline network backed by a consortium of US and Qataricompanies, Oil Minister Bassem Mohammed Khudair stated on Tuesday, outliningBaghdad's strategy to reduce its heavy reliance on the Strait of Hormuz.
Speaking to reporters from the Iraqi delegation'sheadquarters in Washington, Khudair said Iraq's vast energy reserves requiremultiple export outlets, adding that financial and economic constraints hadpreviously prevented the country from pursuing that strategy.
“Iraq had formed a consortium that includes US companies TICapital and Chevron, alongside Qatar's UCC, with an Iraqi oil company expectedto join the project as a partner.”
According to Khudair, the consortium will build a pipelinesystem extending from Basra in southern Iraq to Fish Khabur on the Turkishborder, where it will connect to the Turkish port of Ceyhan. Another branchwill run from Haditha in western Iraq to Syria's Baniyas port, he noted, callingthe routes a “two additional lungs” for Iraq's oil exports alongside the Straitof Hormuz.
Khudair also outlined Baghdad's efforts to expand naturalgas production to meet domestic electricity demand. He highlighted ongoing workat the Akkas and Mansuriya gas fields, TotalEnergies' project at the Artawifield, and gas exploration projects included in Iraq's fifth and sixthlicensing rounds.
“Iraq expects the coming period to bring a major workshopfor the oil and electricity sectors, with broad participation from US companies,”he said, describing the Iraq-US partnership as mutually beneficial.
Khudair also confirmed that Baghdad is negotiating with theOrganization of the Petroleum Exporting Countries (OPEC) to increase Iraq'sexport quota. He urged OPEC+ members to consider Iraq's exceptional historicaland economic circumstances, arguing that a higher export ceiling would providethe revenue needed for reconstruction and to improve living standards.
Addressing security concerns raised by some US energycompanies, Khudair stated that Iraq has long provided a stable operatingenvironment for 15 to 20 major international firms, including BP, Eni, andseveral Chinese companies. He acknowledged that the recent war had temporarilyaffected oil exports and production levels.
On relations with the Kurdistan Region and companiesoperating there, Khudair affirmed that the federal Oil Ministry, the KurdistanRegional Government (KRG), and oil companies had signed a tripartite agreementrequiring all crude exports to pass exclusively through Iraq's StateOrganization for Marketing of Oil (SOMO) under its established procedures.
“Baghdad continues discussions with companies operating inthe Region to increase production capacity and boost exports.” The US-based HKN Energy plans to sign a contractwith the Iraqi government soon to develop the Himreen field, Khudair said,stressing that Baghdad supports all foreign investors, whether American orEuropean.