Indian Oil Corporation (IOC) and Russia’s Stroytransgaz (STG) have decided to submit a joint bid for a $120 million oil pipeline project that will carry 150,000 barrels of crude oil per day (bpd) through the 300-kilometer stretch between Iraq’s border and Jordan’s Zarqa refinery.
Jordan’s energy ministry is expected to award the tender for the 30-year Build Own Operate and Transfer (BOOT) contract in January. The consortium intends to put the pipeline on stream within a year of the tender’s award, with STG extending the pipeline and IOC taking responsibility for the project’s management, operation and maintenance.
This project is part of a larger $365 million 750-kilometer link that will continue into Iraq’s Al-Haditha oil wells, northwest of Baghdad. Jordan will cover the cost of the stretch of pipeline across its territories and Iraq will cover the remainder of the costs.
Iraq is the Kingdom's only source of oil and oil derivatives, importing five million tons in 2001. Jordan receives half of its oil from Iraq for free, while the remaining portion is sold to the Kingdom at a concession price, four to five dollars less than the world market price. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
