‘Gov’t hopeful of Basra-Aqaba oil pipeline project’s resumption’

AMMAN — Jordan is hopeful that preparations for a project to extend an $18-billion pipeline to import crude oil from Iraq’s Basra to the port city of Aqaba will resume soon.

“After the formation of the new Iraqi government, I am hopeful that we will soon resume steps towards further implementation of the project,” Energy Minister Mohammad Hamed said during an event held last week by Edama Association.

The minister said procedures related to the implementation of the project were disrupted recently due to security conditions in Iraq, but the formation of the new government will help push the project forward. 

The 1,680-kilometre double pipeline will pump one million barrels of oil a day from Basra on the Arabian Gulf to Aqaba Port, and around 258 million cubic feet of gas. 

The Basra-Aqaba oil pipeline, which is expected to be operational in late 2017, will provide Jordan with 150,000 barrels of oil per day, while the rest will be exported through Aqaba, generating an estimated $3 billion a year in revenues for the Kingdom. 

Approximately 100 million cubic feet of natural gas will fulfil Jordan’s gas requirements and the rest will be used in pumping stations along the double pipeline. 

Baghdad has shortlisted 12 international companies to build the pipeline, Iraqi officials had said earlier this year, and the state company for oil projects was expected to invite these firms to submit their offers by November or December.

Iraq’s production of oil is expected to reach 4.9 million barrels per day in 2015 and 9 million barrels per day in 2020, according to Iraqi officials.