Syria and Iraq have signed a memorandum of understanding (MoU) to restore the Kirkuk-Baniyas oil pipeline to the Mediterranean region, which has long been out of operation.
"We signed a memorandum of understanding with our friendly country, the Republic of Iraq, to restore the Kirkuk-Baniyas pipeline," Syrian Energy Minister Muhammad al-Bashir said, as quoted in a statement from the Syrian Ministry of Energy, reported by Sputnik, Saturday, July 18.
He called the deal a strategic move to re-operate one of the region's main oil transit routes. The move is also believed to strengthen Syria's role as a regional energy corridor.
The Syrian Ministry of Energy said the agreement was signed in the United States (US), on the sidelines of a meeting between Iraqi Prime Minister Ali al-Zaidi, US Energy Minister Chris Wright, and a number of other high-ranking officials.
In addition to the intergovernmental agreement, the Syrian state-owned oil company, the Syrian Petroleum Company, also signed two separate memorandums of understanding.
The first agreement was forged with Iraq's state-owned oil company, Basra Oil Company, to restore the Haditha-Baniyas pipeline section. The project aims to resume Iraq's oil supplies to Syrian ports in the Mediterranean region.
The second MoU was agreed with an international consortium consisting of two US companies, Chevron and Capital TI, and UCC Holding from Qatar. The consortium will be tasked with preparing technical and financial studies for the pipeline restoration project.
The restoration is projected to increase the pipeline's capacity to around 2 million barrels of oil per day (barrel per day/bpd).
The Kirkuk-Baniyas oil pipeline first operated in 1952. Throughout its history, the pipeline's operations have been stopped several times, especially during sabotage during the Suez Crisis or the Second Arab-Israeli War in 1956.
Furthermore, Iraq unilaterally closed the pipeline between 1982-2000 due to Syria's support for Iran during the Iraq-Iran war.
The pipeline was ultimately completely inoperable after being destroyed by a US air strike during the 2003 invasion of Iraq.
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