For its part, the US Embassy in Baghdad commented, saying: “A new model is looming on the horizon. Through the linking and integration alliances between the countries of the Middle East led by US President (Donald Trump), and in partnership with the vision of the Iraqi Prime Minister (Ali Al-Zaidi), a new strategic corridor will be formed linking Mesopotamia, the Levant, Turkey, and the Gulf, which may significantly reduce the importance of the Strait of Hormuz in the coming years.”
The agreement was signed during the US Chamber of Commerce summit in Washington, DC, which was held to discuss US investments in Iraq.
US Secretary of Energy Chris Wright presided over the signing ceremony, which was signed by Bassem Abdul Karim Nasr, CEO of the Basra Oil Company, and Youssef Qiblawi, CEO of the Syrian Petroleum Company.
Wright said before signing: “There is ample scope to improve conditions in Iraq, increase oil production, reduce dependence on hostile neighbors, achieve freedom and prosperity, and provide abundant energy for Iraq.”
The pipeline extends from Kirkuk in northern Iraq to the coast of Syria on the Mediterranean Sea, with a nominal capacity of 700,000 barrels per day, according to the US Energy Information Administration. It has been out of operation since it was damaged during the US invasion of Iraq in 2003.
According to what the Iraqi News Agency reported, “A memorandum of understanding was signed between Iraq and Syria to rehabilitate the oil pipeline extending from Haditha to Baniyas, with Chevron Company undertaking the implementation of the project.”
Baghdad relies on the southern coastal city of Basra on the Arabian Gulf due to the limited pipeline options available to transport its oil to global markets.
Iraq’s oil production fell by more than 50 percent to about 1.9 million barrels per day in June, compared to about 4.2 million barrels per day in February before the US-Israeli attack on Iran, according to OPEC data.
For its part, the United States welcomed the rehabilitation of the oil pipeline between Iraq and Syria, stressing that it is a strategic project linking Iraqi production to the Mediterranean markets.
The US State Department said that Iraq and Syria are moving to restart the crude oil pipeline with an initial capacity of two million barrels per day, praising the participation of an international coalition led by American companies in the rehabilitation project.
Washington considered that the rehabilitation of the line represents an important milestone in enhancing regional security and stability.
