Iraq-Jordan Pipeline Decision Delayed Again

By John Lee.

Iraq’s oil ministry has said that future of the long-delayed oil export pipeline from Iraq to the Jordanian port of Aqaba will be decided by the next government.

The country has still not formed a new government following parliamentary elections in October.

At a press conference at the weekend, the Ministry of Oil clarified that the project, which it says will not exceed $8.5 billion, is still “under technical study“, and has not yet been put out to contract.

It also revealed that the Council of Ministers agreed to change the contract basis from BOOT (build-own-operate-transfer) to EPCF (engineering, procurement, construction and financing), which is sometimes referred to as “turnkey“, for the entire project; it had previously been split between the two methodologies.

The total capacity of the pipeline from Basra to Haditha is planned to be 2 million barrels per day (bpd), with one million bpd planned for the section from Haditha and Aqaba.

The American company Honeywell UOP was recently approved to develop Haditha refinery.

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(Source: Ministry of Oil)

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