Iraq, Syria Sign Deal to Revive Kirkuk–Baniyas Oil Pipeline

Iraq and Syria have signed a U.S.-backed agreement to rehabilitate and restart the Kirkuk–Baniyas oil pipeline, reviving a major piece of regional energy infrastructure that has been out of service for more than two decades.

The memorandum of understanding was signed in Washington between Iraq's Basra Oil Company and the Syrian Petroleum Company in the presence of U.S. Energy Secretary Chris Wright and the Iraqi prime minister. Under the agreement, Chevron will lead an international consortium responsible for overseeing the project's technical and financial implementation.

The United States described the initiative as a strategic priority for both bilateral relations and regional energy security.

According to the U.S. State Department, the rehabilitated pipeline is expected to have an initial transport capacity of up to 2 million barrels per day, reconnecting Iraqi crude exports to Mediterranean markets while strengthening regional economic cooperation and energy resilience.

The project focuses on rebuilding the Iraq–Syria pipeline linking Haditha in western Iraq with the Syrian port city of Baniyas, a route historically connected to the broader Kirkuk–Baniyas export system.

The pipeline ceased operations following damage sustained during the 2003 U.S.-led invasion of Iraq and has remained inactive ever since.

Syrian Energy Minister Mohammad al-Bashir described the agreement as a strategic milestone in restoring one of the Middle East's most important oil transportation corridors.

In a post on X, he said the project would strengthen Syria's role as a regional energy transit hub connecting the region's resources with Mediterranean export markets while opening new opportunities for investment and cross-border cooperation.

An international consortium comprising Chevron, UCC Holding, and TI Capital will conduct technical and financial feasibility studies before launching construction and rehabilitation work.

The group will also develop the project's implementation framework, including the restoration of the pipeline and related facilities in line with international engineering standards.

The agreement comes amid heightened concerns over global energy security as military tensions between the United States and Iran continue to disrupt shipping through the Strait of Hormuz, one of the world's most critical oil transit chokepoints.

Restoring the Kirkuk–Baniyas pipeline would provide Iraq with an additional export outlet through the Mediterranean, reducing reliance on vulnerable maritime routes and increasing the flexibility of crude shipments to international markets.

The pipeline agreement forms part of a broader package of economic cooperation between Baghdad and Washington. Iraq has signed around 50 agreements and memorandums of understanding with U.S. companies worth an estimated $60 billion, covering sectors including energy, healthcare, finance, and technology.