Iraq, Jordan and Egypt revive the $12 billion Basra-Aqaba oil pipeline project
Agencies, 23 March 2016
The Iraqi Oil Minister Adel Abdel Mahdi and Jordan’s Minister of Energy and Mineral Resources, Ibrahim Saif visited Egypt and headed delegations to the Tripartite Meeting of the oil Ministers of Iraq, Egypt and Jordan to complete the discussions about the oil and gas transportation pipeline.
On this occasion, a memorandum of understanding was signed between Iraq and the Egyptian minister of petroleum and minerals, Farooq Al-Mullah, regarding cooperation with Egypt in oil & gas, drilling, refining, pipeline extension, infrastructure and training.
At the same time, Jordan’s Minister of Energy and Mineral Resources, Ibrahim Saif, discussed with his Egyptian and Iraqi counterparts developments regarding the Basra-Aqaba pipeline project that was agreed upon by the three countries in Amman in November 2015. It was announced that the three ministers have signed a MoU to extend the oil pipeline from Basra to Aqaba. Jordan, Egypt and Iraq have affirmed that they are stakeholders in the Basra-Aqaba oil pipeline project, while stressing the need to complete the scheme thanks to its importance to the three Arab nations, Jordanian Minister of Energy and Mineral Resources Ibrahim Saif said.
In a statement after the meeting it was declared that the Jordanian-Iraqi oil pipeline and the parallel gas pipeline, constitute an ambitious project for its role in achieving integration and enhancing energy security between the two countries after moving toward implementing the project when concluding related technical studies.
According to the MoU, Jordan is to benefit from Iraqi crude oil and liquefied gas to meet its needs of oil products and natural gas and generate electricity.
The Iraqi government had approved an additional route for implementing the project, situated near the Saudi border and provided the project with additional features, notably the reduction of the distance of the pipeline, which will carry the crude oil, therefore reducing the project costs.
In statements to Petra following his return from Cairo, Saif said that Iraq is interested in the project because it secures a new path to export oil, while Jordan is interested because the pipeline passes through its territories. Egypt, meanwhile, will benefit from the project through using its refineries to treat the crude oil, the minister added.
Saif also reiterated the importance of keeping momentum of the project.