The Iraqi government has authorized the Ministry of Oil to invite specialized and interested companies to submit bids for the completion of the Basra–Haditha crude oil pipeline (Iraqi News Agency, 08/04/2026). The project, estimated to cost approximately USD4.6bn, is designed to transport crude from the southern oil hubs to the northern regions, with a capacity of up to 2.25 mb/d.
With the country ramping up efforts to boost export capacity amid heightened tensions in the Middle East, the pipeline provides an alternative route to bypass the Strait of Hormuz, which has been subject to major disruptions since the start of the Middle East war.
In March 2026, the government announced the resumption of oil exports from the Kirkuk fields (Iraq) through the Turkish port of Ceyhan at a rate of 250 kb/d, following an agreement between the Iraqi federal government and Iraq’s northern semi-autonomous region (Kurdistan Regional Government) to restart flows (KEI, 19/03/2026).
In addition, the Ministry of Oil announced its intention to establish a new pipeline between Kirkuk (Iraq) and the Syrian port of Baniyas (Iraqi News Agency, 26/03/2026). The existing line, known as the Kirkuk–Baniyas pipeline, is currently inoperable, as it was damaged in 2003 during the U.S. invasion of Iraq and has remained out of service since then. A study is underway to develop a new pipeline from Iraq to Baniyas.
The Ministry’s plan is to modernize the Basra line and develop branches, one towards Jordan and another towards Baniyas. He explained that “the project is in the design and planning stage and will require significant investment for the pipeline, intermediate stations, and storage facilities.”
Iraq was among the first OPEC producers to cut output following the outbreak of war, with production falling sharply to approximately 1.2 mb/d (as of March 2026) from a previous 4.3 mb/d. Crude oil sales account for 90% of Iraq’s budget revenues, making the disruption particularly damaging for the country’s finances.