Syria signs memorandum of understanding with Iraq to revive oil pipeline (Kirkuk-Baniyas)

Syria signed two memorandums of understanding (MoU) with the Republic of Iraq and a consortium of international companies on Friday (July 17th) to rehabilitate and revive the historic Kirkuk-Baniyas crude oil pipeline, during high-level meetings held in Washington, D.C., in a strategic move aimed at reactivating one of the most important oil interconnection projects in the region and strengthening regional cooperation in the energy sector.

The American Chamber of Commerce witnessed the signing of the first memorandum of understanding on the rehabilitation and revival of the Iraqi-Syrian "modern-Baniyas" pipeline, which is historically linked to the route of the Kirkuk-Baniyas line, where the CEO of the Syrian Petroleum Company, Eng. Yousef Qiblawi, signed on the Syrian side, and the CEO of the Basra Oil Company, Eng. Bassem Abdul Karim Nasser, signed on the Iraqi side, in the presence of the Iraqi Prime Minister, the US Secretary of Energy, and a number of senior officials from the two countries and the American side.

Eng. Keblawi signed the second MoU with an international consortium that includes Chevron , UCC Holding , and TI Capital, to immediately start preparing comprehensive technical and financial studies, and laying the executive foundations for the project, including the rehabilitation of the pipeline and its accompanying facilities in accordance with the highest international technical standards, in preparation for the start of actual implementation on the ground.

Target operating capacity of about two million barrels per day

The comprehensive rehabilitation works aim to reach an operational capacity of about two million barrels of crude oil per day, which will contribute to the reactivation of one of the most important regional energy transmission corridors and strengthen Syria's position as a major hub for the transit of energy supplies towards the shores of the Mediterranean Sea and from there to global markets.

The CEO of the Syrian Petroleum Company, Eng. Yousef Qiblawi, confirmed in statements carried by the Syrian Arab News Agency (SANA) that the Syrian presence in the American Chamber of Commerce comes to strengthen economic relations with neighboring countries, especially Iraq, indicating that the cooperation between the two countries is witnessing a remarkable development in the energy sector, and that the export of Iraqi oil through Syria reflects the level of advanced partnership between the two sides.

He added that Syrian relations with the State of Qatar are still strong and continuous, stressing that Emir Tamim bin Hamad Al-Thani and President Ahmed Al-Shara maintain constant communication that supports the path of bilateral cooperation, pointing out at the same time that relations with all Arab Gulf countries are witnessing increasing momentum, welcoming the entry of investors into the Syrian market without exception in energy and infrastructure projects.

Ongoing economic coordination and starting very soon

The Chairman of the Iraqi-American Business Council, Osama Al-Quraishi, confirmed that the current stage is witnessing accelerated positive steps between Iraq and Syria, indicating that coordination continues in agreements and conducting mutual visits, leading to the signing of the first memorandum of understanding during this economic forum in Washington, which represents the beginning of a process to rebuild economic cooperation between the two countries.

Al-Quraishi explained that there is a great ambition to move to the next economic phase through the project of establishing an oil export line through the Syrian port of Baniyas, stressing that the technical and field work will start very soon, pointing out that the operations of exporting Iraqi crude oil through Syrian ports are currently underway, stressing the importance of holding close meetings that bring together Iraqi traders and their Syrian counterparts to open new horizons for joint investment.

Minister of Energy Mohammed al-Bashir said via the X platform that the memorandum of understanding with the sisterly Republic of Iraq to rehabilitate the Kirkuk-Baniyas pipeline represents a strategic step to restart one of the most important oil transmission lines in the region, strengthen Syria's position as a regional energy corridor that connects the region's resources to the Mediterranean Sea, and opens new horizons to attract quality investments.

Official U.S. welcome and international support for the project

In an official statement, the US State Department welcomed the announcement by Syria and Iraq to proceed with the rehabilitation and construction of the crude oil pipeline between them, stressing its critical importance in enhancing the stability and economic prosperity of the region.

The US State Department explained that the project to rehabilitate and build the pipeline is a priority in the field of infrastructure and has bilateral and regional strategic importance, indicating that it reflects the two countries' recognition of the strategic goal of restoring a vital energy corridor that connects Iraqi oil production to global export markets.

The Kirkuk-Baniyas pipeline dates back to 1952, when it was built with a length of 800 kilometers with a historic pumping capacity of 300,000 barrels of oil per day, and the British company "BP" completed its implementation at that time, but the pipeline has been subjected to frequent and long stops over the past years due to the successive political and security conditions in the region.