Baghdad approves $ 5.6 billion Iraqi-Jordanian pipeline project



2017/04/04 (00:01 PM) - Number of readings: 158 - Number (3893)



Baghdad / Range

The Iraqi oil ministry announced on Monday the approval of the Iraqi Council of Ministers in principle for its establishment, and the pipeline project guarantees the transfer of crude oil extracted from the fields of Basra, southern Iraq, to ​​the city of Aqaba In the south of Jordan, the area extends by a distance of 1700 km, through two phases, the first extends from Basra to Haditha in western Iraq, and the second to end in the port of Aqaba to export oil to the rest of the world.

Undersecretary of the Ministry of Oil Zia Jaafar said in a press statement yesterday, on the sidelines of the Third Jordanian International Energy Summit, that the Iraqi Council of Ministers agreed in principle to establish the Iraqi-Jordanian pipeline project, and that the meetings will be held between the two countries next week on the estimated project cost about 5.6 Billion dollars.

Jafar added that the Iraqi government has intensified its efforts with the company invested in the pipeline project, and reached an agreement with them on technical issues and economic issues in addition to determining the price of tariffs and the total cost of the project.

The first part of the pipeline project is about 2.25 million barrels of oil per day, while the amount of oil that will reach the port of Aqaba through the pipeline million barrels per day, will be converted 850 thousand barrels, to the Jordan Petroleum refinery, in addition to another pipeline to transport 100 million cubic meters per day, Of the gas Jordan will use to produce electricity.

The project is expected to be completed in 2017 and the cost of the latter is estimated at $ 18 billion. Jafar said that meetings will be held between officials of the Iraqi Ministry of Oil and the legal department in the Iraqi Council of Ministers and their counterparts in Jordan next week to review the memorandum of understanding signed earlier between The two countries under the previous government, in addition to the possibility of amendments to some of the "things" in the Convention according to new developments.

He added Undersecretary of the Minister of Oil Dia Jafar, that after working to review the memorandum and the approval of the agreement between the Jordanian and Iraqi sides, will "re-contact with the Iraqi Council of Ministers and the investor to sign the contract in its final form, expected at the same time, the completion of the procedures during the next two months to work on signing Final contract and follow-up implementation of the project.

Jafar said that the final cost of the Iraqi-Jordanian oil pipeline project will be $ 5.6 billion to be borne by the investor, which will recover its costs through the wage paid by the Iraqi government, the duration of the project is 25 years.

The third Jordanian International Energy Summit, organized by Jordan's Ministry of Energy and Mineral Resources, was held in Jordan on Sunday, with the participation of ministers and representatives of the sector from some 45 Arab and foreign countries, including Morocco.

Iraq and Jordan had held on 22-11-2016, a new round of talks on the extension of an oil pipeline between the two countries after the postponement earlier, because of increased security risks in the difficult circumstances in Iraq at the moment.

On January 9, 2013, Jordan and Iraq signed a framework agreement to extend the 1,700 km pipeline extending from Basra to the port of Aqaba with a capacity of 1 million barrels per day and cost about $ 18 billion.

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