New life for Iraq’s southern oil export expansion

A $417M subsea pipeline project that was funded and then suspended over the past two months has gotten Cabinet approval again, with a half million barrel per day capacity increase slated for next year.
Tugboats position a single point mooring (SPM) buoy in the Basra Gulf in January 2012 as Iraq expands its export capacity. (ALI ABU IRAQ/Iraq Oil Report)

Iraq’s Cabinet has once again approved funding for a major export infrastructure upgrade that would increase southern crude export capacity by half a million barrels per day in just over a year, after suspending a previous authorization following opposition to the project contract.

Ministers on Tuesday re-approved the $416.9 million “Sealine 3” subsea crude oil export pipeline project, to be carried out by Dutch firm Boskalis and funded by a Japanese loan under the purview of the state-owned Basra Oil Company (BOC), according to a Cabinet statement.

The move comes a fortnight after ministers suspended a prior approval for the project granted in May, citing the need for “a review of the new contract.”

The new contract approved by Cabinet this week includes unspecified “amendments and improvements,” made to the formula after an audit by an Oil Ministry committee, according to a senior Iraqi government official briefed on the review process.

This content is for registered users. Please login to continue.
If you are not a registered user, you may purchase a subscription or sign up for a free trial.