Iraq has approved the bidding process for a $4.6 billion oil pipeline linking Basra to Haditha, in a step aimed at strengthening its crude export infrastructure. The planned pipeline will stretch 685 km, transporting crude oil from southern Iraq to northern regions.

The decision was made by the Council of Ministers under Prime Minister Mohammed Shia’ Al-Sudani, allowing the Ministry of Oil Iraq to directly invite specialised companies to participate in a targeted tender process, said media reports.

The Basra–Haditha oil pipeline project is currently in the design phase, with plans for potential future expansion toward neighbouring countries including Jordan and Syria, Iraqi officials said.

The pipeline will have a capacity of 2.25 million bpd, connecting Basra's southern fields to the K-3 station in Haditha.

It forms part of Iraq’s broader strategy to diversify crude export routes, strengthen energy security and reduce exposure to geopolitical risks affecting key transit corridors.

Funded under the Iraq-China Framework Agreement, the project is being built by the state-owned Basra Oil Company (BOC) and State Company for Oil Projects (SCOP), reported Iraqi News.

In parallel, Iraq is moving ahead with the rehabilitation of the Kirkuk–Fishkhabur pipeline, which is expected to initially carry about 350,000 barrels per day (bpd), providing additional capacity for northern exports.

The multi-billion-dollar Basra–Haditha project underscores Iraq’s push to modernise its oil transport infrastructure while attracting international expertise through a competitive bidding process.

Once completed, the pipeline is expected to enhance export flexibility and support long-term production growth, helping position Iraq more strongly in global energy markets.