Iraq and Oman in talks to build new oil pipeline to secure exports to Asia

Iraq is negotiating with Oman to build a pipeline linking Basrah to Omani shores to reduce its dependence on the Strait of Hormuz and stabilise crude exports to Asia.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Iraq’s State Oil Marketing Organization (SOMO) is in advanced talks with OQ Trading, the commercial arm of Oman’s state energy company, to construct a pipeline connecting Basrah’s oil terminal to a location in Oman. The project aims to diversify Iraq’s crude export routes and bypass the Strait of Hormuz, a maritime zone frequently affected by geopolitical tensions and weather-related disruptions.

A strategic infrastructure responding to regional risks

According to a statement issued on September 12 by the Iraqi News Agency, SOMO General Manager Ali Nazar al-Satari said the project would allow exports via “Oman’s open waters”, offering more stable maritime conditions than those found at Iraq’s southern ports. The proposed pipeline would provide a logistical alternative to Basrah terminals, currently responsible for nearly all of Iraq’s crude exports, averaging above 3 million barrels per day.

This new logistical corridor is part of a broader strategy to reduce Iraq’s vulnerability to Gulf tensions. The Strait of Hormuz, through which around 20% of global energy trade passes, was recently in the spotlight following Iranian threats to block the waterway amid its conflict with Israel.

Strengthened partnership between Baghdad and Muscat

In early September, Iraqi and Omani governments signed several memoranda of understanding, including agreements allowing Iraq to use Oman’s crude storage facilities and jointly market Iraqi oil. The Ras Markaz terminal, located near Oman’s Duqm special economic zone, was identified as a strategic site to host these volumes outside traditional export routes exposed to regional instability.

Efforts to diversify Iraq’s pipeline infrastructure have gained momentum since the 2023 closure of the northern Iraq-Turkey pipeline, increasing Iraq’s reliance on southern Gulf terminals. Iraqi officials have also floated options to revive pipelines to ports in Syria, though such alternatives remain under consideration.

Asia-focused strategy to secure demand

Oman could become a key export hub for shipping Iraqi crude to Asian markets without crossing exposed Gulf shipping lanes. This strategic shift toward Asia also reflects Iraq’s intention to secure access to fast-growing energy demand in countries like China and India.

As the second-largest producer within the Organization of the Petroleum Exporting Countries (OPEC), Iraq is seeking to capitalise on its production capacity despite ongoing regional uncertainties. Talks with Oman represent a longer-term effort to offer a more resilient and commercially attractive supply route for international buyers.

Iraq is negotiating a potential revision of its OPEC production limit while maintaining exports at around 3.6 million barrels per day despite significantly higher capacity.
Le Premier ministre hongrois se rendra à Washington pour discuter avec Donald Trump des sanctions américaines contre le pétrole russe, dans un contexte de guerre en Ukraine et de dépendance persistante de la Hongrie aux hydrocarbures russes.
Nigerian tycoon Aliko Dangote plans to expand his refinery’s capacity to 1.4 million barrels per day, reshaping regional energy dynamics through an unmatched private-sector project in Africa.
COOEC has signed a $4bn EPC contract with QatarEnergy to develop the offshore Bul Hanine oil field, marking the largest order ever secured by a Chinese company in the Gulf.
The group terminates commitments for the Odin and Hild rigs in Mexico, initially scheduled through November 2025 and March 2026, due to sanctions affecting an involved counterparty, while reaffirming compliance with applicable international frameworks.
Shell has filed an appeal against the cancellation of its environmental authorisation for Block 5/6/7 off the South African coast, aiming to continue exploration in a geologically strategic offshore zone.
The Greek government has selected a consortium led by Chevron to explore hydrocarbons in four maritime zones in the Ionian Sea and south of Crete, with geophysical surveys scheduled to begin in 2026.
Algerian company Sonatrach has resumed exploration activities in Libya's Ghadames Basin, halted since 2014, as part of a strategic revival of the country's oil sector.
The Indian refiner segments campaigns, strengthens documentary traceability and adjusts contracts to secure certified shipments to the European Union, while redirecting ineligible volumes to Africa and the Americas based on market conditions.
US authorities have authorised a unit at Talen Energy’s Wagner plant in Maryland to operate beyond regulatory limits until the end of 2025 to strengthen grid reliability.
Gran Tierra Energy has signed a crude oil sale agreement with a $200mn prepayment and amended its Colombian credit facility to improve financial flexibility.
Operations at BP’s 440,000 barrel-per-day Whiting refinery have resumed following a temporary shutdown caused by a power outage and a minor fire incident.
The European Union targets a trading subsidiary and a refinery linked to China National Petroleum Corporation, tightening access to financial and insurance services without disrupting pipeline deliveries, with reallocations expected in settlements, insurance, and logistics. —
Viktor Orban says he is working to bypass recent US sanctions targeting Rosneft and Lukoil, underscoring Hungary’s continued reliance on Russian hydrocarbons.
Traceability requirements from the EU (European Union) on fuel origin are reshaping Indian refined flows, with a shift toward Africa and Brazil supported by local premiums and a decline in Russian exports.
U.S. sanctions targeting Rosneft and Lukoil trigger a rebound in oil, while the European Union prepares a clampdown on liquefied natural gas and maritime logistics, with immediate repercussions for markets and Russia’s export chain.
Ten days before COP30, Brazil awarded five offshore oil blocks for over $19mn, confirming its deepwater development strategy despite environmental criticism.
Tripoli mise sur des partenariats avec des majors et jusqu’à 4 milliards $ d’investissements pour relancer sa production pétrolière, malgré un climat politique divisé.
Niger hardens its stance on energy sovereignty but avoids breaking with China National Petroleum Corporation, its main oil industry partner, in order to safeguard export revenues.
As Brent hovers near $60, growing opacity around OPEC’s output restrains a steeper decline in crude prices amid surplus warnings by the International Energy Agency.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.