Baghdad authorized Basra Oil Co. to sign a memorandum with Syria and launched talks with ConocoPhillips and partners on Akkas field development.
Iraq plans to sign an intergovernmental agreement with Syria for the joint construction of oil pipelines that will connect oil-producing regions to international export markets via the Mediterranean Sea.
The Iraqi government has authorized the CEO of Basra Oil Co. to sign a memorandum of understanding with the Syrian Ministry of Oil regarding the implementation of this pipeline construction project.
The government has also instructed the Minister of Oil to sign a memorandum with a consortium comprising ConocoPhillips, TI Capital, and Novaterra, to begin discussions on the assessment of exploration and development of the Akkas field and its surrounding areas.
Additionally, the Iraqi Ministry of Oil plans to announce a tender for the implementation of the Integrated Kayara Project, aimed at further developing the country’s oil infrastructure and increasing production capacity.
Context and Outlook
The government also approved a recommendation to conduct a tender for drilling an exploratory well in the Kara-Tappa area and approved the launch of the framework agreement between Iraq and Turkey on cooperation in the field of water resources. Under the government decision, the funding mechanism for projects under this agreement will take effect on September 1.
Such steps signal the activation of regional cooperation in the energy sector and the development of oil infrastructure with a view to increasing exports through new corridors.
These actions demonstrate Iraq’s intention to expand oil infrastructure and increase exports via new routes.