Chevron Eyes Rebuilding Pipeline Through Iraq

Chevron has signed onto a preliminary deal to invest in two Iraqi oil fields and is considering rebuilding a pipeline from Kirkuk, Iraq, to the Syrian port of Baniyas on the Mediterranean Sea.

The proposed pipeline would have an initial transport capacity of 2 million barrels per day. The investment in the oil fields is part of Chevron's efforts to diversify its export routes and reduce dependence on the Strait of Hormuz, which has been affected by Iran's attacks on ships transporting oil through the waterway.

Iraq wants to increase its oil production and exports, currently averaging 4.5 million barrels per day, with about 90% flowing through the strait. The country's large southern fields depend almost entirely on exports through the Strait of Hormuz.