IRAQ’S Oil Ministry has invited companies to submit detailed designs and bids to supply equipment for the construction of two oil pipelines with Iran, the ministry has announced. Companies interested in providing designs and equipment for the pipelines linking the Basra oilfields in southern Iraq with Iran’s Abadan refinery should submit their offers no later than 9.00 GMT on 24 April, the ministry said. The tender documentation can be obtained from the ministry’s Oil Projects Co for a non-refundable fee of $500, the ministry said. The aim of the project is to export crude oil and import multi-products through the Shatt-al-Arab waterway.
In November last year, Iraq and Iran signed an agreement to build the two pipelines, one to export Iraq's crude oil to Iran and the other to pump oil products from Iran to Iraq. Iraq's oil minister Hussein al-Shahristani said that the crude pipeline would pump 100,000brl/d of Basra Light to Iran.
When the two countries signed the agreement last year, they did not make public the cost of the two pipelines, which will each be between 50km and 75km. However, it is understood that the two lines would be financed by a $1-billion loan granted by Tehran to Baghdad earlier this year.
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