Iraq-Jordan Pipeline Decision Delayed Again

By John Lee.

Iraq's oil ministry has said that future of the long-delayed oil export pipeline from Iraq to the Jordanian port of Aqaba will be decided by the next government.

The country has still not formed a new government following parliamentary elections in October.

At a press conference at the weekend, the Ministry of Oil clarified that the project, which it says will not exceed $8.5 billion, is still "under technical study", and has not yet been put out to contract.

It also revealed that the Council of Ministers agreed to change the contract basis from BOOT (build-own-operate-transfer) to EPCF (engineering, procurement, construction and financing), which is sometimes referred to as "turnkey", for the entire project; it had previously been split between the two methodologies.

The total capacity of the pipeline from Basra to Haditha is planned to be 2 million barrels per day (bpd), with one million bpd planned for the section from Haditha and Aqaba.

The American company Honeywell UOP was recently approved to develop Haditha refinery.

See also.

(Source: Ministry of Oil)

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