Saudi Arabia approves revival of Iraq oil pipeline

11 November 2026
The 1,568km pipeline was last used in August 1990

Iraq and Saudi Arabia are considering reviving an old pipeline route between the Zubair oil field in Basra and Saudi Arabia’s Red Sea port of Yanbu.

Operations of this 1,568km pipeline were halted in August 1990 following Iraq's invasion of Kuwait and the onset of the Gulf War.

At the end of last month, Saudi Arabia granted preliminary approval to revive the joint oil export pipeline, according to a report published by Saudi’s Shafaq News that cited anonymous sources.

If the pipeline is reinstated it could potentially allow Iraq to export oil via the Red Sea, reducing its reliance on the Strait of Hormuz.

The pipeline was originally built at a cost exceeding $2.6bn and featured a large network of storage tanks and offshore loading terminals.

Under current discussions, Iraq would be required to fund the restoration of its own section of the pipeline.

The Mena region is currently experiencing a boom in pipeline project activity due to disruption to shipping as a result of the war that started when the US and Israel attacked Iran on 28 February 2026.

As a result of the conflict, the shipping of gas, chemicals, oil and refined products has been disrupted in through both the Strait of Hormuz and the Bab al-Mandab Strait.

Many countries, including Saudi Arabia and Iraq, see pipelines as a key way of diversifying export routes so that they are less reliant on shipping through these two waterways.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Take advantage of our introductory offers below for new subscribers and purchase your access today! If you are an existing client, please reach out to your account manager.