Iraq Restores Oil Pipeline to Syria, Eyes Export Deal

Iraqi engineers have repaired the country's oil pipeline to Syria, which was closed in 1982, and it is now ready for use. The 890km pipeline runs from the Iraqi pumping station of Haditha into Syria and west to the Mediterranean port of Banias. Negotiations between Iraq and Syria for the export of 300,000 b/d of Iraqi Basrah Light oil to Syria at discounted prices are "going smoothly," according to Abdul Amir al-Anbari, an Iraqi representative at Opec's meeting in Vienna.

Key Takeaways:

• The Iraqi-Syria oil pipeline, which was closed in 1982, has been repaired by Iraqi engineers and is ready for use.
• Negotiations between Iraq and Syria for the export of 300,000 b/d of Iraqi Basrah Light oil to Syria at discounted prices are progressing smoothly.
• Iraq provides 75,000 b/d of oil to Jordan outside the UN's oil-for-aid programme, with half sold at a discounted price of $19/bl and the other half free.
• The UN is aware of the arrangement with Jordan and has exempted the country from the oil-for-aid programme, although it still monitors the flow of goods from Jordan to ensure sanctions are not violated.
• The restoration of the oil pipeline to Syria and the potential export deal are indicative of the improvement in Syria-Iraq relations.
• Iraq aims to support Syria's economy and strengthen trade and business relationships between the two countries.

Statistics:

• The 890km Iraqi-Syria oil pipeline spans from the Iraqi pumping station of Haditha to the Mediterranean port of Banias.
• Iraq plans to export 300,000 b/d of Iraqi Basrah Light oil to Syria at discounted prices.
• Iraq provides 75,000 b/d of oil to Jordan, with 37,500 b/d at a discounted price of $19/bl and 37,500 b/d free.
• The UN's oil-for-aid programme has been exempted for Jordan, with the country still subject to monitoring to ensure sanctions compliance.

Sources:

• Argus
• WPA (November 13, p1)