 |
| Kirkuk-Banias oil pipeline between Iraq and Syria |
A US State Department official revealed Washington's support for Iraq and Syria's efforts to rebuild and rehabilitate the crude oil pipeline between the two countries, predicting that US companies would play a leading role in financing the project.
The official explained, according to Reuters, that the pipeline will provide oil producers with an alternative route for exporting crude, away from the Strait of Hormuz, which lies off the Iranian coast and is witnessing escalating tensions that threaten maritime security and global supplies.
This project comes at a time of escalating tensions between Washington and Tehran, with the latter declaring its control over the Strait of Hormuz in response to the US-Israeli war. Iraq suffers from near-total dependence on the Strait of Hormuz for its oil exports, with 95% of its oil shipments passing through this waterway, making it highly vulnerable to any instability in the region.
Iraq’s offshore oil exports in May fell to just 8% of the 2025 average, according to analysis by Vortexa Energy, while oil sales account for 90% of the Iraqi state budget.
According to informed sources, the US Special Envoy for Syria and Iraq, Thomas Barrack, led talks with officials from both countries and major energy companies such as US-based Chevron, to explore restarting the pipeline that has been out of service for years.
Discussions are currently focused on rebuilding the approximately 800-kilometer-long Kirkuk-Banias pipeline, which connects the Kirkuk oil fields in northern Iraq to the Syrian port of Banias on the Mediterranean coast and has been closed for more than two decades.
Sources indicated that the existing infrastructure is severely damaged, and the project will likely require substantial funding and a comprehensive reconstruction that could take two to three years, with a consortium of American companies being selected to carry out the restoration and rehabilitation work. Washington is also considering other alternative routes, including the construction of a new line from Basra in the south to Haditha in the center, with branch lines extending to Syria, Türkiye, or Jordan.
The rehabilitation agreement is expected to be announced in the coming days, coinciding with Iraqi Prime Minister Ali Zaidi's visit to Washington and his meeting with President Donald Trump at the White House, where Trump indicated that "huge" oil partnerships would be announced this week or next week.
Regional sources indicated that Syrian Foreign Minister Asaad al-Shaibani may visit Washington to attend the signing ceremony, which could open the door for American companies to participate in oil projects within Syrian territory.
