Iraq’s Energy Expansion: $4.6B Pipeline to Push Oil Production to 6M Barrels Per Day
Iraq has approved the construction of the Basrah-Haditha oil pipeline, a $4.6 billion (5.97 trillion Iraqi dinars) project aimed at enhancing the country’s oil transport capacity. The project represents a significant investment in Iraq’s energy infrastructure as the country looks to increase oil production.
Pipeline Development Financed Under Iraq-China Agreement
The pipeline will be financed under the Iraq-China agreement, with state-run Basra Oil Company and Oil Projects Company leading its development. This initiative highlights growing economic cooperation between Iraq and China as Iraq seeks to strengthen its domestic energy sector.
Boosting Oil Transport and Production Across Iraq
Proposed by the Ministry of Oil in August, the pipeline is expected to facilitate crude transport across Iraq’s central and southern regions. Iraq currently produces about 4 million barrels per day, making it the second-largest oil producer in the Organization of the Petroleum Exporting Countries.
Iraq aims to increase production to 6 million barrels per day by 2028, the Iraqi News Agency reported in September, citing Deputy Minister for Extraction Affairs Basim Khudair.
Iraq Awards New Oil and Gas Concessions to Global Investors
In early 2024, Iraq awarded several oil and gas concession sites to 22 international companies. The country plans to offer additional sites in 2025 as part of broader efforts to attract foreign investment.
Oil Minister Hayan Abdel Ghani said in September that new projects are expected to add 3.459 billion cubic feet of gas per day. These developments could increase Iraq’s recoverable oil reserves to 160 billion barrels, up from the current estimate of 145 billion barrels.
Strategic Investment to Secure Iraq’s Energy Future
The Basrah-Haditha oil pipeline is a key part of Iraq’s long-term strategy to solidify its position in the global energy market.
By expanding infrastructure and boosting production capacity, Iraq hopes to drive economic growth and secure energy stability, signaling the country’s commitment to leveraging international partnerships for sustained development.
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