France’s TotalEnergies seeks stake in Iraq–Syria oil pipeline project
In France, French energy company TotalEnergies is negotiating participation in an international consortium that plans to build an oil pipeline from Basra in southern Iraq to the Syrian Mediterranean port of Baniyas. The company’s chief executive officer, Patrick Pouyanné, announced this during a ceremony at the Élysée Palace in Paris, where France and Iraq concluded a number of agreements, The National reports.
Negotiations over a stake
According to Pouyanné, TotalEnergies is actively discussing obtaining a stake in the consortium that will develop the Basra–Baniyas pipeline project. Sources told the publication that the French company is seeking a 10% stake in the consortium. This would give it a role in creating an alternative route for Iraqi oil exports.
The consortium includes U.S. company Chevron, Qatari-Syrian UCC Holding, and U.S. investment company TI Capital. TotalEnergies announced its intention to join the group in August, and negotiations over the consortium’s final structure are ongoing.
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Route to the Mediterranean Sea
The planned oil pipeline is to connect southern oil fields near Basra with Baniyas on Syria’s Mediterranean coast, from where oil could be supplied to Europe and other destinations. The Iraqi government supports the project as an alternative export route bypassing the Strait of Hormuz.
Industry experts estimate construction costs at $15 billion. The work is expected to take at least four years. The publication also notes that recent drone attacks from Iraq on a Saudi pipeline demonstrated the vulnerability of such infrastructure.
Previous routes and agreements
Iraq is also considering restoring the old Kirkuk–Baniyas oil pipeline, built in the 1950s. It is in a state of disrepair, although its capacity previously stood at about 300,000 barrels per day. During Iraqi Prime Minister Ali al-Zaidi’s visit to Paris, Pouyanné also signed a preliminary agreement to strengthen supplies of liquefied natural gas to Iraq. France and Iraq concluded separate agreements in the fields of defense, data infrastructure, and civil aviation.
