Controversy surrounds Iraq's Basra-Aqaba oil pipeline project
2024-09-08 11:31:33
Iraq’s plan to diversify its oil export routes through the Basra-Aqaba pipeline is facing political resistance, primarily from Shia factions concerned about security and proximity to Israel.
The 1,700-kilometer pipeline, intended to transport up to three million barrels of oil per day, aims to reduce Iraq's reliance on the Strait of Hormuz and mitigate regional risks.
Critics argue that exporting via Aqaba in Jordan could increase costs and potentially expose Iraqi oil to Israeli access. Legal challenges to block the pipeline have so far been unsuccessful, with the Iraqi Federal Court dismissing a lawsuit against the project.
The Iraqi federal government has allocated 6.4 trillion dinars from the 2024 budget to advance the pipeline, with revised project costs estimated at $8.5 billion. Despite its strategic potential, the pipeline remains a contentious issue amid Iraq's broader struggle to secure its oil exports while balancing internal political opposition and external pressures.
As the country navigates these complexities, the outcome of the Basra-Aqaba pipeline project will significantly impact Iraq’s economic future and regional standing.