Iraq is looking for investors in order to help out in extending a network of oil pipelines that will improve crude exports from OPEC’s second-largest producer.
The Arab nation is working on a new link from the oilfields in the south to the K3 pumping station at Haditha in the north, and building pipelines to ports in Jordan and Syria, Deputy Oil Minister Ahmad Shamaa said on Friday (14th December, 2012) in London.
The government of Iraq is looking for an undetermined amount of funding for the project as it looks to the bolster production to 8 million barrels per day by 2018 from 3.4 million barrels. The south-north pipeline will have capability of 2.25 million barrels per day and the pipeline from Haditha to Aqaba in Jordan will have the capacity of 1 million barrels per day.
Shamaa expressed in an interview that the timing of the construction depends on how the investors are responding. The government has hope for completing financial banking for the project by the end of 2013, he said. The plans include the creation of a second export pipeline through Syria with capability of 1 million barrels once unrest in the neighboring country end, he added.
Abdul Kareem al-Luaibi, the Oil Minister said on 9th December that the pipeline to Jordan will be including a capacity of around 150,000 barrels to the factory in Zarqa. Shamaa also said on Friday that near about 500,000 barrels would be available for selling overseas.
The oil ministry of Iraq will possess the pipeline from Basra district to Haditha in a so-called engineer, acquire and construct, or EPC, contract. The stretch from Haditha to Jordan will be possessed confidentially under a 20-year allowance.
Creating a pipeline to Syria cannot be discussed before civil turbulence stops inside the country, Shamaa emphasized on this point.
Iraq began pumping crude through the strategic pipeline from the Basra district to Haditha, used to provide refineries and power production facilities, al-Luaibi said.
The nation exceeded Iran in order to become the second biggest producer in the Organization of Petroleum Exporting Countries earlier this year.