Pipeline will take 1 million barrels a day of crude to Aqaba in Jordan
Expressions of interest and prequalifying bids for the build-own-operate-transfer (BOOT) contract for the 1,000-kilometre-long Iraq oil export pipeline are to be invited in April.
The project calls for the construction of a pipeline with the capacity to take 1 million b/d of crude oil from Haditha in western Iraq to Aqaba. The project will also encompass a gas pipeline that will provide fuel for the pipeline’s pumping stations and supply some consumers in Jordan.
The Oil Ministry plans to release a tender package for the project in July-December and for the transaction to reach financial close in January-June 2014. The plan calls for the successful developer to be given a concession for 20 years.Payments to developers will be in two parts: an availability charge and a throughput charge.
An intergovernmental agreement will be signed between Iraq’s Oil Ministry and the Energy & Mineral Resources Ministry in Jordan.
The capital cost of the project is still being finalised, but is estimated to be several billion dollars.
SNC Lavalin is working as adviser on the project for the Oil Ministry.