Iraq has approved an expansive strategy to triple the country's pipeline export capacity, alongside a transit deal with Syria to transport and store Basra crude via Mediterranean ports.

During its regular Tuesday session, the Iraqi Cabinet approved the development recommendations put forward following the Prime Minister's May 20 meeting with the senior leadership of the Ministry of Oil.

The approved recommendations outline “a detailed plan” to maximize crude oil export capacity, scaling pipeline flows from 220,000 to 770,000 barrels per day across two phases over two and a half months.

The strategy calls for a three-phase expansion of regional truck-borne exports to neighboring countries, targeting 420,000 barrels per day.

This infrastructure surge is driven by the country's urgent economic need to bypass the maritime blockade of the Strait of Hormuz, which severely choked its primary southern shipping lanes.

Cabinet Empowers Oil Minister and SOMO to Secure Contracts 

The directives also grant the Minister of Oil expanded financial and contractual authority, while ordering the State Oil Marketing Organization (SOMO) to secure contracts for the additional volumes.

The plan mandates restoring fluid catalytic cracking (FCC) units at domestic refineries under the management of a Japanese operating firm.

Iraq Solidifies Mediterranean Energy Route 

Furthermore, the Council approved an agreement with Syria to transport, store, and handle Basra Light, Medium, and Heavy crude grades through the Mediterranean ports of Baniyas and Tartus.

The Cabinet authorized opening a Ministry of Oil representative office in Syria to directly manage these export operations.

To bypass severe export bottlenecks caused by the closure of the Strait of Hormuz, Iraq recently reopened its Al-Waleed and Al-Tanf border crossings with Syria for the first time in over a decade to allow overland oil convoys to pass.

Following this reopening, initial trial deliveries in April 2026 successfully transported crude to the Mediterranean coast, where Syria began loading vessels at the Baniyas port refinery.

This corridor clears overcrowded domestic storage tanks by securing an immediate, alternative logistics route to deliver Basra crude to global markets.