Iraq Pipeline Deal with Syria Set to Boost Oil Exports and Diversify Energy Sector

The Iraqi government has announced several major initiatives to boost its oil and gas industry, including an agreement with Syria to restart a historic pipeline project.

The new deal will see Iraq's Basra Oil Company work with Syria's oil ministry to expand and refurbish the Kirkuk-Baniyas crude oil export pipeline, giving it access to additional export outlets through the Mediterranean port of Baniyas in Syria. This could decrease risk for the country's oil export sector by providing a new route not reliant on the Persian Gulf.

Iraq will also begin drilling an exploration well at the Qara Tappah gas and condensate field in northeastern Iraq, which is estimated to hold between 2 and 2.4 billion barrels of reserves. The Integrated Qayyara Project, a flagship oil scheme for modernization, will be put up for competitive bidding, aiming to boost Iraqi oil production.