Al-Ghadban announces the deadline for receiving offers to implement the Iraq-Jordan oil pipeline

by **claud39** Thu Dec 26, 2019 8:26 am

Al-Ghadban announces the deadline for receiving offers to implement the Iraq-Jordan oil pipeline

26/12/2019

Economy News - Baghdad

The Ministry of Oil announced the deadline for receiving offers for implementing the joint oil pipeline with Jordan.

The Ministry of Oil called on companies and coalitions that are eligible to implement the Iraq-Jordan oil pipeline project to submit their technical offers, according to the official news agency "conscious".

The ministry stated that the rehabilitation of companies that have expressed their desire to participate in the implementation of the Iraqi-Jordanian pipeline project, which includes extending the first section of the pipeline inside the Iraqi territories "Rumaila - modern" with a distance of approximately 700 km, and a design capacity of two million and 250 thousand barrels.

The second section of the pipeline will be extended to Jordan, Haditha - Aqaba, with a distance of 900 km, and a design capacity of one million barrels.

The Minister of Oil, Thamer Al-Ghadban, indicated that the Ministry had previously formed a technical work team in cooperation with the international consultant to prepare a formula for legal contracts, financial issues and technical specifications for the implementation of the project.

He indicated that the ministry has set a timetable that includes inviting companies to qualify and submit technical offers.

Al-Ghadban stated that the Ministry has set the end of next May as a deadline for receiving technical offers for the project from qualified companies, after which the offers will be studied and appropriate selection taken into consideration in the public interest and in a manner that achieves the goals and plans of the ministry.

He hinted that the ministry will invite companies or coalitions to submit the final offer later, and the issue will be resolved and the company or coalition eligible to implement the project will be decided before the end of next year 2020.

The spokesman for the ministry, Assem Jihad, said that the company or the winning coalition to bid for these projects will cover all costs and financial expenses, and the federal budget does not bear any financial expenses or consequences, and the amounts will be recovered by the investors after the project is run according to the specified time periods.

Jihad pointed out that the project for laying the pipeline inside the Iraqi territories "Rumaila - Haditha" will be in accordance with the formula of the investment contract (EPCF), and the project for laying the section for Jordan "Haditha - Aqaba" will be implemented according to the formula of the investment contract (BOOT).

Jihad denied the rumors about postponing the procedures of implementing the project due to the current situation in Iraq, pointing out that these projects are among the important economic strategic projects that require a long time to prepare and implement.

In October 2017, the Iraqi Prime Minister and his Jordanian counterpart at the time discussed the steps of the project to build an oil pipeline from Basra, Iraq, to the port of Aqaba, south of Jordan.

On April 9, 2013, Jordan and Iraq signed an agreement to build a 1700 km pipeline to transport Iraqi crude oil from Basra to the Aqaba export terminals, at a cost close to $ 18 billion and a capacity of one million barrels per day.

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