From Iraq to the Mediterranean, U.S. oil giants discuss forming a consortium to build a pipeline around the Strait of Hormuz

From Iraq to the Mediterranean, U.S. oil giants discuss forming a consortium to build a pipeline around the Strait of Hormuz.

The latest news shows that amid the renewed war in Iran, US oil giant Chevron is promoting the construction of a pipeline network from Iraq to Syria as a way to transport energy around the Strait of Hormuz. It is reported that Chevron is negotiating with Iraq to take over and develop the country's large oil fields.

According to multiple people familiar with the matter, the company is also working with US private equity fund TI Capital and a group owned by Syrian/Qatar billionaire Al-Hayat brothers to form a consortium to build an oil pipeline network. It is worth mentioning that the U.S. Ambassador to Türkiye, Tom Barrack, was the key person in this deal.

The real estate tycoon is a long-time friend and adviser to U.S. President Donald Trump. Barak currently serves as the U.S. special envoy for Syria and Iraq, and has coordinated the Hayat brothers to reach a number of large-scale deals in the fields of energy, aviation and agriculture in Syria.

(Trump met with the new Iraqi Prime Minister Ali Zaidi at the White House this week, and Barak (first from the right) was also present) Chevron is in talks to join the construction of a pipeline from southern Iraq to near the oil hub of Kirkuk in the north.

The proposed "pipeline around the Strait of Hormuz" will start from Kirkuk, partially utilizing the existing old pipeline network, and go directly west through Syria, finally reaching the port of Baniyas. This would transport oil from southern Iraq directly to the Mediterranean Sea.

Another option under discussion is to branch off at Haditha, south of Kirkuk, and then extend to Syria, Türkiye or Jordan, respectively, people familiar with the matter said. As OPEC's second largest oil producer, Iraq's daily output exceeded 4 million barrels per day at the beginning of this year.

With the outbreak of the war with Iran, oil tankers were unable to pass through the Strait of Hormuz, and Iraq, which lacked land-based oil storage capacity, was forced to quickly cut production to a quarter of pre-war levels.

Compared with other economies in the region, Iraq's finances are more dependent on oil, with oil export revenue accounting for 90% of the government budget. Therefore, as the war eases, Iraq actively seeks external cooperation to promote alternative crude oil output capabilities.

In addition to Iraq, Middle East oil-producing countries such as Saudi Arabia and the United Arab Emirates are also actively exploring the expansion of their own pipelines that can bypass the strait. Meanwhile, Syria is trying to exploit the Iran war to position itself as an alternative exit route through the Strait of Hormuz.

Regarding this cooperation, a Chevron executive told the media that the company needs to conduct further research on the feasibility of the pipeline.

The executive also added: "We will wait and see how things develop, but this is certainly an exciting project that will help provide more options." At the same time, the United States is also stepping up its deployment in Iraq's oil sector to coordinate with its plan to withdraw all troops from the country by the end of September.

"Iraq has great potential because of its oil resources, and we're going to have a lot of deals... There's going to be a lot of oil coming out, and it's going to be produced by American companies," Trump said on Tuesday. (

#Stocks #Oil #Earnings