Iraqi Oil Minister Bassim Mohammed Khudair al-Abadi announced plans on Wednesday to contract global companies to build a pipeline transporting oil from Basra to Peshkhabur, stressing that that economic and financial problems have been an obstacle to laying new pipelines.

In a press briefing, the minister stated that the primary oil pipeline will route crude from Basra to Peshkhabur, establishing a direct connection to the Turkish port of Ceyhan.

Concurrently, a strategic branch line will extend to Haditha, linking the infrastructure to the Syrian port of Banias.

Iraq Overcomes Funding Hurdles with Pipeline Alliance

The Minister of Oil stated that despite difficulties installing new pipelines, there is now an alliance between two American companies, specifically TI Capital and Chevron, and the Qatari UCC company.

Furthermore, an Iraqi company will join the alliance and participate in laying the pipeline.

Iraq Energy Investments to Bypass Strait of Hormuz

Al-Abadi highlighted that a shared understanding exists between U.S. President Donald Trump and Iraqi Prime Minister Ali Faleh al-Zaidi, who is currently in Washington, to attract international corporations to invest in Iraq.

He further emphasized that Iraq had maintained a strategy to diversify its oil export outlets before recent regional conflicts, adding that it is unacceptable for a country with vast oil and gas reserves to rely on a single export gateway like the Strait of Hormuz.

Al-Zaidi Meets Trump to Secure Energy Alternatives 

Al-Zaidi is on a week-long official visit to the United States, meeting with Trump to shift bilateral relations from military crisis management to a long-term strategic economic and energy partnership.

The ongoing military conflict involving Iran, the United States, and Israel has caused a catastrophic collapse in Iraqi oil production.

The central objective of the trip is finding alternative energy export routes to bypass the Strait of Hormuz to reduce Iraq's economic vulnerability to Middle Eastern shipping disruptions.

U.S. Firms Drive Oil Expansion Amid Push for Higher OPEC Quota 

Major U.S. firms are spearheading multi-billion dollar infrastructure projects to expand Iraq's export corridors as the country lobbies OPEC+ for a higher production quota.

The Iraqi Ministry of Oil already announced earlier this month that the Basra Oil Company signed a data-sharing agreement with Chevron on Wednesday to evaluate the West Qurna 2 oil field.

According to SOMO data, Iraq's June crude exports rose significantly as Basra terminal shipments tripled from May to reach roughly 870,000 barrels per day.