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Iraqi Cabinet Approves $4.5bn Basra-Haditha Oil Pipeline Project

The Iraqi Cabinet has approved the Ministry of Oil's proposal for the construction of the Basra-Haditha oil pipeline, with a capacity of 2.25 million barrels per day.

 

Key decisions include:

1. Contract Approval: Endorsed a 5.97225 trillion Dinar [$4.5 billion] contract between Basra Oil Company (BOC) and State Company for Oil Projects (SCOP), funded under the Iraq-China Framework Agreement.

2. Pipeline Procurement: Approved the procurement of a 56-inch, 685-km crude oil pipeline with a reduced cost of 1.6205 trillion dinars, 5.5% below the estimated cost. The pipeline will use high-quality materials, subject to Ministry of Oil approval before manufacturing, with a delivery timeframe of 720 days.

3. Regulation Waiver: Exempted the contract and procurement from the 2014 Government Contracts Execution Guidelines and associated regulations.

 

The project will be included in the operational budget of the Oil Projects Company before awarding the contract.

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