Iraq and Iran revive pipeline project

Iraq and Iran have agreed to revive a pipeline project to help solve Iraq's fuel shortages, Iraqi Oil Ministry spokesman Assem Jihad said on Monday. The dual pipeline, which was proposed last year, would allow Iraq to pump up to 150,000 barrels per day (bpd) of crude oil from southern oil fields to Iran's Abadan refinery and receive the equivalent in refined fuels, Jihad said.
"The issue was seriously discussed in a meeting between Oil Minister Ibrahim Bahr al-Uloum and the Iranian ambassador last week," said Jihad, adding that Iranian Foreign Minister Kamal Kharrazi raised the issue during a visit to Baghdad last month.
Unlike the original proposal for a 400,000 bpd pipeline, the scheme will not aim immediately to raise Iraqi oil exports.
"Our southern offshore terminals can deal with the export capacity at present," Jihad said by phone.