Iraq’s cabinet has approved preliminary agreements for the Basra Oil Company to partner with a consortium led by US energy giant Chevron, alongside Capital TI and Qatar’s UCC, to study strategic oil export pipeline projects.
The move involves signing a heads of agreement and a non-disclosure agreement, marking the first formal step toward evaluating new infrastructure that could reshape the country’s export logistics.
The decision underscores Baghdad’s intent to expand its export capabilities beyond existing bottlenecks, potentially reducing reliance on current routes and enhancing leverage in global energy markets.
By engaging major international players, Iraq signals a willingness to modernize its downstream sector and attract foreign investment in critical infrastructure.
This development comes as Iraq faces internal pressure to increase production quotas within OPEC.
Government sources have previously indicated that Baghdad is considering all options, including a potential exit from the cartel, if its demands for higher output limits are not met.