Page 5 - MEOG Week 36

MEOG COMMENTARY MEOG

deal for Block 17, north-west of Samawah, along Mediterranean Sea, and is in the process of
the route of the pipeline. The deal was notewor- studying the economic feasibility of the project

thy because of the challenges of operating in the and the appropriate geographical and security
area and because the Gazprom subsidiary is a conditions”.
pipeline rather than exploration specialist. Middle East Oil & Gas (MEOG) under-
stands that the line in question would be con-
Resuming imports structed along a separate route to the redundant
Meanwhile, Jordan will resume importing oil Kirkuk-Banias pipeline.
from Iraq this month, according to Bloomberg. Kirkuk-Banias had a nameplate capacity

The media outlet quoted Hassan Hiari, director of 300,000 bpd until it was damaged and shut
of the gas and oil department at the Ministry of down in 2003. Ambitious eff orts were made in
Energy and Mineral Resources, as saying that no 2007 and 2010 involving the aforementioned
shipments were made during August because of Stroytrangaz to rehabilitate the line, but nothing
the coronavirus (COVID-19) pandemic. has been heard of these plans since.
In July, Amman and Baghdad came to an It would be a strange choice for Iraq, which
agreement on the resumption of oil exports, is currently walking a tightrope between its reli-
with Iraq completing all of the required logis- ance on Iranian gas for its domestic power sector
tical preparations. Jordanian Energy Minister and Western infl uence in the Gulf, which it will
Hala Zawati told press gathered in Amman that doubtless hope ensures safe passage of its crude

crude flows had stopped after prices fell below to international markets.

$20 per barrel.

After lengthy delays, the first batch of Iraqi Few options

crude left Baiji for Jordan via Kirkuk in Septem- Aside from the lengthy projects to establish
ber under a deal for 10,000-barrel cargoes to meaningful routes through Jordan and Syria,
arrive daily by truck. Baghdad has few other options. Speaking in late
From then until April this year, a total of 2015, then oil minister Abdul Mahdi said that
2.44mn barrels of oil were exported to Jordan, the idea of re-opening the Iraq Saudi Arabia
with the most recent cargoes being unloaded Pipeline (ISAP) was still being considered, but
into Jordanian trucks at the border in an effort stressed that it was a matter “governed by poli-

to halt the spread of COVID-19. tics and the relations between the two countries
A bilateral deal was signed in February 2019 primarily.”

and includes that the crude flows cover around Those talks appear to have dried up, but dis-
7% of Jordan’s current demand, buying the oil cussions between Iraq and Saudi Arabia have
at a $16 per barrel discount to Brent in order to instead centred on gas and grid connectiv-
cover the transport and deviation in specifica- ity, with rumours of Saudi Aramco helping to

tions. In return, Iraqi goods exported through develop gas reserves in southern and western
the port of Aqaba receive preferential rates. Iraq.
Meanwhile, cross-border trade has also
Syria to the sea increased with Kuwait, though in the form of
To the north, and less appealing, is the idea of Iraq seeking to import Kuwaiti gas. Th ere has
a pipeline route through Syria. Jihad has pre- been talk of Iraq increasing its transport capabil-
viously been quoted as saying that the minis- ities through Turkey, but with the Kirkuk-Cey-
try was considering “the extension of an Iraqi han line in need of attention, its repair is likely to
oil pipeline through Syrian territory to the be fi rst in line for investment.™

Week 36 09•September•2020 www. NEWSBASE .com P5