Jordan and Iraq to build oil pipeline

26 October 2001

The government has announced plans to build a 750-kilometre pipeline to convey Iraqi crude to the Jordanian refinery at Zarqa, northeast of Amman. The Energy & Mineral Resources Ministry is expected to invite prequalification bids for the estimated $350 million construction contract by the end of November.

The project involves construction of a pipeline to carry 250,000 barrels a day (b/d) of crude from the Iraqi pumping station at Haditha, 260 kilometres northwest of Baghdad. Works are expected to be completed within two years. The two governments will share the cost of the pipeline, which was originally agreed upon in 1998. ILF Consulting Engineers of Germany is the consultant on the project.

Iraq supplies Jordan with about 80,000 b/d of crude, exported across the border by truck. Jordanian exports to Iraq reached $400 million last year under the UN oil-for-food programme, which involves Iraq supplying the kingdom's energy needs in exchange for basic commodities. Baghdad has also signed an agreement with Damascus for the construction of a pipeline to the Mediterranean coast, which will be financed by the Iraqi government. Iraqi Oil Minister Emir Muhammed Rasheed said on 30 October that the Iraqi government would announce the selected contractor by the end of the year.

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