Iraq Advances Ambitious Pipeline Project with Chevron, UCC

Iraq's Oil Minister Bassem Mohammed Khudair announced that his country is moving forward with a crucial oil pipeline project, backed by US energy company Chevron and Qatar's UCC. The $10 billion pipeline will connect Iraq's southern province of Basra to Fishkhabur on the border with Syria, with a branch extending westward to the Mediterranean port city of Baniyas in Syria.

The new route is seen as essential for Iraq as it currently relies heavily on exporting oil through the Arabian Gulf and the Strait of Hormuz. A link to the Mediterranean would provide an alternative outlet during times of difficulty. The project is also in line with US President Donald Trump's push for the construction of new oil pipelines in the Middle East.

Iraq is working with a consortium of US corporations, including Chevron and TE, as well as its Qatari partner UCC, to build the pipeline. The country aims to diversify its export routes and increase flexibility in reaching global markets. Baghdad also plans to develop its northern export route through a deal with Turkey.

The oil minister said that Iraq's ultimate goal is to achieve self-sufficiency in petroleum products, use more of its gas domestically, and eventually grow exports of higher-value refined goods. The country has maintained its commitment to meeting its OPEC production targets, with output not anticipated to surpass 4.2 million barrels per day.