Iraq Advances $4.6 Billion Basra–Haditha Oil Pipeline Toward Bidding Stage

Iraq has approved a targeted bidding process for its $4.6 billion Basra–Haditha oil pipeline, a major project aimed at expanding export routes and strengthening crude transport capacity.

(P&GJ) — Iraq has approved the next step in developing a major crude oil pipeline linking Basra to Haditha, moving forward with a formal bidding process for the multi-billion-dollar project, according to an op-ed recently published on Zawya.

The proposed pipeline, estimated at about $4.6 billion, would run roughly 685 kilometers and transport crude from southern production hubs to northern regions. Designed with a capacity of about 2.25 million barrels per day, the system would connect Basra’s oil fields to the K-3 station near Haditha.

Government approval allows the country’s oil ministry to invite selected companies to participate in a targeted tender, rather than a broad open bidding round. The project remains in the design phase but is expected to play a key role in strengthening Iraq’s oil transportation network.

Officials have indicated the pipeline could eventually be extended beyond Iraq’s borders, potentially linking to export routes through neighboring countries. The development is part of a broader effort to reduce reliance on constrained or vulnerable transit corridors and improve long-term export flexibility.

As reported by Zawya, the project is being developed by state-owned entities and funded through a bilateral framework agreement with China. In parallel, Iraq is also working to restore capacity on its northern export system, including upgrades to the Kirkuk–Fishkhabur pipeline, further supporting its strategy to expand crude flows and modernize infrastructure.