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[BUSINESS] · Iraq, Syria, United States · 18 sources

Iraq and Syria revive Kirkuk‑Baniyas pipeline to bypass Hormuz

Iraq and Syria signed memoranda of understanding to rebuild the Kirkuk‑Baniyas crude oil pipeline, which will run from the oil‑rich Kirkuk region in northern Iraq to the Mediterranean port of Baniyas in Syria. The revived line is projected to transport up to 700,000 barrels per day initially, with plans to reach around 2 million barrels per day once fully operational. The project is intended to provide an export route that bypasses the Strait of Hormuz, whose traffic has been disrupted by the ongoing US‑Iran conflict.

U.S.‑backed international consortium led by Chevron has been tapped to carry out the reconstruction, and the agreement was announced at a U.S.–Iraq business summit in Washington. At the summit, Iraq signed dozens of non‑binding agreements with Western energy firms worth more than $60 billion, including deals on the West Qurna 2 and Nassiriya fields. U.S. officials described the pipeline as a “critical energy corridor” that will reduce Iraq’s reliance on the Hormuz strait, which historically handles about 20 % of global oil flows and has been partially closed due to regional fighting.

The pipeline has lain dormant since it was damaged during the 2003 invasion of Iraq. Its revival is expected to boost Iraq’s oil export capacity, support regional energy security, and lessen the strategic vulnerability of the Hormuz chokepoint.

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