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).