China-Jordan JV Bids for Iraq-Jordan Oil Pipeline

By John Lee.

Platts reports that Iraq’s oil ministry has received a bid from a Jordanian-Chinese consortium to build and operate a 1-million-bpd crude oil export pipeline to the Red Sea port of Aqaba.

Jordan’s Mass Group Holding, along with a consortium of Chinese companies, submitted a service fee proposal to Iraq’s oil ministry for the project on a build, own, operate and transfer (BOOT) basis.

Under the contract, crude will be supplied by state-owned South Oil Company (SOC), via the State Oil Marketing Organization (SOMO).

In return, the consortium will be paid a service fee, compensating it for construction and fixed operating costs, as well as a throughput service charge.

The consortium is now waiting for confirmation from Baghdad to enter into exclusive negotiations, and to reach financial close in the first half of 2017, a source told Platts.

The route of the pipeline has been changed to avoid areas under the control of the Islamic State group (IS, ISIS, ISIL, Daesh).

(Source: Platts)

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