Iraq signs deals to rebuild Kirkuk-to-Baniyas pipeline and cut reliance on Strait of Hormuz

Iraq has signed preliminary agreements with Western oil firms to rebuild the long-defunct Kirkuk-to-Baniyas crude pipeline, in a move aimed at widening its export options beyond the Strait of Hormuz. The deals were announced at a United States-Iraq business summit at the US Chamber of Commerce in Washington on Friday. Iraq and Syria also signed a cooperation agreement to reconstruct the pipeline, which links northern Iraq's Kirkuk oil region with Syria's Mediterranean port of Baniyas.

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The state news agency said Chevron will carry out the project under the agreement. The US Department of State said it welcomed the plan and described the pipeline as a route that could connect Iraqi oil production to Mediterranean export markets and beyond. It said the rehabilitated line would initially have the capacity to transport 2 million barrels per day of crude oil.

US ambassador to Turkiye Tom Barrack said the latest pipeline agreements could make the Strait of Hormuz "an afterthought". The project comes as Baghdad seeks to reduce dependence on the Strait of Hormuz, where transit has been heavily disrupted amid the US-Israel war against Iran. Iraq's government has been pursuing a broader set of agreements with Western energy companies, and Chevron also signed two other deals with Iraq focused on boosting oil production.

Iraqi officials said the initial agreements with US firms across energy, healthcare and technology are worth more than $60bn. The pipeline itself has been out of service for years, and any reconstruction would mark a significant shift in Iraq's export strategy. Iraq is one of the world's major oil producers, and access to alternative routes is strategically important because much of its crude has traditionally moved through the Gulf.

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A functioning route through Syria to the Mediterranean would give Baghdad another option for reaching international markets if Gulf shipping is constrained. The agreements also carry regional significance because they involve both Iraq and Syria at a time when energy infrastructure remains closely tied to wider political and security tensions. The State Department's reference to a US-led international consortium suggests the project would depend on technical and financial coordination beyond the two governments.

That makes the deal not only an energy project but also a test of whether cross-border infrastructure can be revived in a volatile regional environment. What remains unclear is the timetable for reconstruction, the full financing structure, and how quickly the pipeline could become operational. It is also not yet clear how the project would be protected or managed across the border, or what role other companies may play alongside Chevron.

Further details are likely to emerge as the agreements move from preliminary signing to implementation.

#Iraq #Syria #Chevron #pipeline #StraitofHormuz

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