Iraq’s cabinet has approved several preliminary agreements with a foreign consortium, including major U.S. and Qatari firms, to evaluate routes for major new strategic oil export pipelines.

According to an official cabinet statement released on July 5, 2026, state-owned Basra Oil Co. was cleared to sign a heads of agreement and a non-disclosure agreement with a consortium that includes U.S.-based Chevron Corp. and Capital TI, alongside Qatar’s UCC.

The group will spearhead technical and financial feasibility studies to assess and compare potential transit paths for the country's crude oil exports.

Among the primary options under evaluation are the Basra-Haditha-Kirkuk-Ceyhan route, which would connect Iraq's southern oil fields to the Turkish port of Ceyhan via northern infrastructure, and the Basra-Haditha-Baniyas route, targeting the Syrian Mediterranean coast.

The cabinet emphasized that these initial agreements are strictly exploratory and do not establish any immediate financial or contractual obligations for the Iraqi Oil Ministry.

In a related move to advance its domestic network, the cabinet also authorized Basra Oil Co. to sign a separate consultancy services contract with Houston-based engineering firm KBR Inc.

This contract will focus specifically on the development of the Basra-Haditha oil pipeline project, a critical internal link that runs from the southern oil hub toward western Iraq.

The pipeline initiatives represent a renewed effort by Iraq, OPEC’s second-largest producer, to diversify its export infrastructure.

The country currently relies heavily on its southern Gulf terminals for the vast majority of its crude exports, leaving its economic lifeline vulnerable to regional bottlenecks and operational disruptions.

By exploring alternative northern and western overland routes, Baghdad aims to secure more flexible paths to European and global markets while upgrading its aging grid.

However, standard geopolitical and security challenges along the proposed routes—particularly through Syria—remain significant hurdles that the upcoming feasibility studies will need to address.