PM al-Sudani Pushes Forward $5 Billion Multi-Directional Oil Export Pipeline Project

Peregraf — Iraqi Prime Minister Mohammed Shia' al-Sudani has directed the formation of a special commission to oversee the implementation of the Basra–Haditha multi-directional oil pipeline project, a major strategic energy project aimed at strengthening Iraq’s oil export flexibility and protecting national energy security.

Sudani chaired a special meeting on Sunday to review progress on the project, attended by the Ministers of Oil and Industry and Minerals, along with several specialized advisors.

During the meeting, the ministers presented a detailed briefing on the project, including delays faced during the previous phase and proposed mechanisms to accelerate implementation.

The meeting also reviewed the status of two key implementation contracts:

• The first, signed on August 11, 2024, between the Basra Oil Company and the Oil Projects Company of the Ministry of Oil
• The second, signed on January 7, 2025, between the Oil Projects Company and the State Company for Iron and Steel under the Ministry of Industry and Minerals

Strategic Export Route

Sudani said the Basra–Haditha pipeline would provide Iraq with greater flexibility in transporting crude oil toward the Turkish port of Port of Ceyhan, as well as the ports of Baniyas and Aqaba.

He added that the project would also improve crude supply to refineries in central and northern Iraq, helping increase refining capacity under different operational conditions.

The Prime Minister said the project had originally been proposed as a proactive step to prepare for regional instability and to prevent possible disruptions to Iraq’s current export routes.

He stressed that the pipeline is essential for preserving Iraq’s oil wealth, protecting energy resources, and maintaining national economic development.

$1.5 Billion Allocated This Year

Sudani approved the formation of a special implementation commission chaired by the Undersecretary of the Ministry of Oil, with participation from specialized advisors and relevant directors general from the Ministries of Oil and Industry.

The meeting also approved the allocation of $1.5 billion for the project during the current year, funded under the Iraq–China agreement.

Officials said the total estimated cost of the Basra–Haditha pipeline project stands at $5 billion.

The project is considered one of Iraq’s most important long-term infrastructure plans in the energy sector, especially amid regional tensions affecting oil transport and export routes.