7 days ago
Kirkuk-Baniyas Pipeline: A $10B 'Illogical' project
Shafaq News – Baghdad
The Kirkuk–Baniyas oil pipeline suffers from severe infrastructure deterioration, Iraqi oil expert Hamza al-Jawahiri warned on Tuesday, questioning the feasibility of restoring the facility.
Speaking to Shafaq News, al-Jawahiri said, 'The talk about rehabilitating the oil pipeline between Kirkuk and the Port of Baniyas is illogical. The pipeline is old, dilapidated, and unsuitable for transporting crude oil. When Syria secured the line in 1972, it was already found to be in poor condition and was never used to transport crude, but rather allocated for petroleum products.'
He noted that the pipeline, which began operating in 1952, is now 73 years old. 'Rehabilitation has no meaning. What is needed is an entirely new line, something Syria cannot currently afford. If Iraq were to bear the cost, it would be no less than $10 billion, in addition to operational expenses, Syrian transit fees, and risk costs. In the end, ownership would revert to Syria after 20 years if that is the contract term,' he explained.
Al-Jawahiri added that Iraq has no urgent need for new oil export outlets. 'The Gulf export line meets our needs and is not under the control of another country. The cost of exporting a barrel through it is only $0.60 compared to more than $15 via Baniyas. The Gulf line has a capacity exceeding 6 million barrels per day (bpd), while southern production is over 5.5 million bpd and will rise above 6 million within two years, with costs still at $0.60 per barrel.'
'This project, or any other that bypasses the Gulf ports, would be a waste of Iraqi money,' he affirmed. 'The Arabian Gulf, now and in the future, is the most complete export outlet. It enjoys international protection and has not been shut down for over 70 years.'
