Iraq Signs Preliminary Agreement with US-Qatari Consortium to Study Oil Pipeline to Baniyas Port

The Agreement and Its Parties

Iraq's Council of Ministers has approved a preliminary principles agreement and a non-disclosure memorandum with a US-Qatari consortium, authorizing the preparation of technical studies and engineering plans for an oil pipeline extending to the port of Baniyas on the Mediterranean Sea. Iraqi Oil Ministry spokesperson Salim al-Rikabi confirmed that the agreement carries no financial or contractual obligations at this stage, and is limited to assessing the project's technical feasibility.

Strategic Framework

The project forms part of the Iraqi Oil Ministry's strategy to diversify crude export outlets, thereby strengthening export flexibility and reducing risks associated with dependence on a single transit route. The initiative carries particular significance given that the vast majority of Iraq's oil exports currently pass through the Strait of Hormuz, making the development of alternative outlets both an economic and a security priority.

Reviving the Iraq-Syria Oil Link

The agreement brings renewed attention to the Iraq-Syria oil connectivity project, which Baghdad has been examining as part of a broader plan to develop its oil export network toward the Mediterranean. Former Iraqi Oil Minister Hayan Abdul-Ghani indicated in March that constructing a new pipeline to Baniyas could prove more viable than reactivating the aging Kirkuk-Baniyas pipeline.

Abdul-Ghani also outlined plans for a pipeline running from Basra to Haditha in a first phase, to be subsequently connected to an export network reaching both Turkey's Ceyhan port and Syria's Baniyas port. If realized, this network would enable the transport of oil from both southern and northern fields through multiple outlets, reducing reliance on southern ports alone.

Alternative Export Routes

Baghdad is intensifying efforts to diversify its oil export routes through several parallel options, including:

• Expanding the export capacity of southern Iraqi ports
• Resuming oil exports through Turkey's Ceyhan port
• Developing an export route through Syria's Baniyas port
• Exploring the potential use of Lebanon's Tripoli port

Iraq and Syria have also agreed to form a joint technical committee to assess the condition of the existing pipeline between the two countries and evaluate the feasibility of reactivating or rehabilitating it in line with current technical requirements.

Baniyas on Iraq's Energy Map

The port of Baniyas in Syria's western Tartus governorate has re-emerged as a focal point of logistical cooperation between Damascus and Baghdad in recent months. In April, Syria began loading the first shipments of Iraqi fuel oil at Baniyas in preparation for export to global markets, a development that underscored the port's potential as an outlet for Iraqi energy exports to the Mediterranean.