Baghdad (IraqiNews.com) A planned oil pipeline that would extend from Iraq to Jordan will cost between 5 and 7 billion dollars, Jordan said Thursday as Iraq finished studies over the project.
Jordanian press quoted energy minister Ibrahim Seif saying that a decision over the implementation of the project is expected from the Iraqi side soon.
“The pipeline will extend from Iraq’s city of Najaf, along the Saudi borders, to (Jordan’s) al-Aqaba,” the minister said, adding that both countries will be adopting a build-operate-transfer (B.O.T) system within 15-20 years in carrying out the undertaking.
Officials from both countries agreed recently in Amman on the project that is meant to transfer nearly 100 million barrels of oil, covering Jordan’s needs of crude oil, which are estimated by 150.000 barrels a day. The remaining amounts are transferred to Egypt and other countries having oil deals with Iraq.
Jordan and Iraq had already signed a deal involving supplies to Jordan at 10.000 barrels of crude oil per day, surging to 30.000. Oil imports from Iraq are on a halt at present, though, due to the unstable security situation there.
Iraq is OPEC’s second largest oil producer, following Saudi Arabia. It had pledged to cut 210.000 barrels of its daily production to 4.35 million barrels starting January in line with an historic OPEC members agreement reached in a Vienna meeting in December. It had previously been reluctant to take the move citing its terrorism-battered economy. OPEC took the move in an attempt to prop up falling oil prices.