Pre-qualification for Iraq to Jordan pipeline concluded

Jordan's Zarqa refinery will receive 150,000 bpd. (Image source: Jordan Petroleum Refinery Company)Iraq's oil ministry has pre-qualified 12 companies and joint ventures to build an US$18bn export pipeline from Haditha, near Baghdad, to Jordan

The pipeline would allow one million bpd of Iraqi crude to be exported to Jordan.

Jordan's Zarqa refinery would receive 150,000 bpd while the remainder would be exported through the Red Sea port of Aqaba according to Reuters, reducing Iraq's reliance on shipping oil via the Strait of Hormuz.

"It's a pre-emptive plan to absorb higher production that international oil companies are planning to achieve by 2017," an oil ministry spokesman was quoted as saying. "More export outlets mean more safety for Iraq's exports and its customers."

Having seen its output rise significantly to 3.1m bpd in August this year, according to a Reuters survey, Iraq's output is predicted to rise by a further 400,000 bpd by the end of this year.

The short-listed companies that have been put through to the next stage of the selection process are: China National Petroleum Corporation (CNPC), Consolidated Contractors Company (CCC), Daewoo International, Lukoil, Marubeni, Mitsui, Saipem and Toyota Tsusho.

The joint ventures that have advanced to the next stage are: Go Gas, Larsen & Toubro and Fius Capital; Orascom and Petrojet; Petrofac and Stroygazconsulting; and Punj Lloyd Group and Mass Global International (Iraq).

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