Iraq Negotiating $500m New Pipelines

Iraq's state-run South Oil Company is holding talks with international oil companies to build three pipelines worth up to $500 million [600 billion Iraqi dinars], according to a report from Dow Jones Newswires.

SOC's director-general said on Monday that the intention was to link key oil fields to the export system in southern Iraq.

"We are talking to CNPC [China National Petroleum Corporation], BP, Eni and others to build three pipelines," Dhiaa Jaafar told Dow Jones Newswires in an exclusive interview in his office in Basra.

Jaafar said the three lines would link the Rumaila North, Tuba and Nahr Ben Umar fields with oil deposits in the Faw peninsula, before crude oil is shipped via the sea terminals in the Gulf.

The length of the pipelines will range from 105 kilometer to 145 kilometers each, he said.

Many of Iraq's oil pipelines are old and eroded.

(Source: Dow Jones Newswires)

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