Project Profile
Value: US$18 billion (CAPEX only)
Location: Basrah in southern Iraq to the Port of Aqaba on the Red Sea in Jordan,
Capacity: Section one - 2.25 million b/d of crude oil and section two - 1 million b/d along the 1,000 kilometres
Length: 1,680 in total (Section one - 680 kilometres and section two - 1,000 kilometres)
Construction to begin: 2018
Strategic Crude Oil Export Pipeline Infrastructure Project is a project across Jordan, Syria and Turkey. The phase-1 of the Strategic Crude Oil Export Pipeline Infrastructure Project will connect Basrah in southern Iraq to the Port of Aqaba on the Red Sea in Jordan. Estimated to require US$18 billion capital expenditure, this first phase is strategic and urgent for Iraq to upgrade its infrastructures at the scale of the on going upstream projects licensed in the south of the country. With the development of these on going projects in crude oil upstream, the Iraq Government is planning to ramp up the production from the current 3.4 million barrels per day (b/d) to 8 million b/d in 2018. This Basrah to Aqaba pipeline project should comprise two sections:
- Section 1, from Basrah Pumping Station 1 A (PS1A) to Haditah Pumping Station 5A (PS5A) and Connection 3 (K3) in northern Iraq.
- Section 2, from Haditah (K3) to the Port of Aqaba in Jordan.
Section-1 should have a capacity of 2.25 million b/d of crude oil along 680 kilometres between Basrah and Haditah. It should require four twin pumping stations (PS1-PS1A, PS2-PS2A, PS3-PS3A, PS4-PS4A). In the K3 connecting point, the Section-1 of the pipeline will be divided to supply the three export routes to Jordan, Syria and Turkey. The Section-2 is planned to have a capacity of 1 million b/d along the 1,000 kilometres crossing Jordan from Haditah to Port of Aqaba on the Red Sea. Along this pipeline, the conceptual study is planning seven pumping stations (PS5A, PS12A, PS13A, PS14A, PS15A, PS16A). The pumping station 15A will in addition supply a separate pipeline to the Zarqa Refinery in the northeast of Jordan. In the Port of Aqaba the pipeline will feed a crude oil tank farm with vessels loading facilities. Jordan pipeline project to be split into EPC and BOOT. Because of the cost of the Strategic Crude Oil Export Pipeline Infrastructure Project and its two sections located in different countries, the Iraq Ministry of Oil is intending to organize the call for tender with two separate contracts. The Section-1 from Basrah PS1A to Haditah PS5A and K3 should be posted for bid under the form of conventional engineering, procurement and construction (EPC) contract based on SNC-Lavalin FEED conclusions.
This EPC contract of the section-1 will include:
- Crude oil 56 inch diameter pipeline
- Associated fuel gas pipeline
- Gathering tank farm with storage capacity for 7 days crude oil flow located at the pumping station PS1A
- Inlet pumping station P1s-PS1A at the Rumaila Oil field
- Three intermediate pumping station PS2-PS2A at Samawa, PS3-PS3A at Holy Najaf, and PS4-PS4A at Ramadi
- Outlet pumping station PS5-PS5A at the Haditah hub (K3) in the Anbar Governorate
- Distributing tank farm with 5 days storage capacity at Haditah hub K3
- Two metering station located at PS1A and PS5A
The Section-2 from Haditah K3 to Aqaba pumping station is planned to be awarded under a build, own, operate and transfer (BOOT) contract based on 20 years operational concession period. At the end of the BOOT concession period, the pipeline will be transferred to the Iraq Ministry of Oil.
The BOOT project shall include:
- Crude oil pipeline of 42 inch diameter
- Associated fuel gas pipeline
- Tie-in crude oil pipeline connection to Zarqa Refinery in Jordan
- Two main pumping stations, PS15A near Zarqa Refinery in Jordan, one near Aqaba
- Tank farm in PS15A pumping station with storage capacity of 3 million barrels
- Tank farm in Port of Aqaba with 7 million barrels storage capacity.
- Four intermediate pumping stations, PS12A and PS13A in Iraq, PS14A and PS16A in Jordan
- Three metering stations in Haditah K3, Zarqa Refinery and Port of Aqaba.
The Ministry of Oil will establish a new entity called SPV to become the owner of the Section-2 at the end of the BOOT concession period allocated to the operator. SCOP to award EPC and BOOT contracts in 2013 The national South Oil Company (SOC), the State Oil marketing Organisation (SOMO) and the South Gas Company (SGC) will sign service contracts with the owner of the BOOT contract and operator of the section-2. In January 2013, SCOP launched the qualification process in sending invitations for expression of interest (EOI). In February 2013, SCOP pre-qualified declared bidders. In April 2013, SCOP is planning to call for tender (CFT). In September 2013, SCOP will select the preferred bidders for the BOOT contract to be awarded in November 2013. Through this Jordan, Syria and Turkey export pipelines, Iraq is fulfilling its commitment to the 17 international companies such as BP , ExxonMobil, Gazprom, Petronas, PetroChina, Lukoil or Shell to secure their export in line with the crude oil production expected in 2018.
Operators:
State Company for Oil Projects (SCOP): Operator with 100% interest