Iraq names pre-qualified builders for Jordan oil pipe project

Iraq has pre-qualified 12 companies and joint ventures to build an $18-billion export pipeline to Jordan, the oil ministry said. The plan is to export 1 million barrels per day (bpd) of Iraqi crude to Jordan, of which 150,000 bpd will supply Jordan's Zarqa refinery. The remainder would be exported through the Red Sea port of Aqaba, reducing Iraq's reliance on the Strait of Hormuz shipping route.

After stagnating for years due to war and sanctions, Iraq's oil output began to rise significantly in 2010 and output reached 3.1 million bpd in August. Iraq expects output to rise by 400,000 bpd by the end of this year, mainly due to the start-up of the Majnoon oilfield operated by Royal Dutch Shell.

The short-listed companies and partnerships set for the next stage of the selection process to build the pipeline from Haditha near Baghdad to the Jordanian border are:

China National Petroleum Corporation (CNPC), Consolidated Contractors Company (CCC)

Daewoo International, Lukoil, Marubeni, Mitsui, Saipem, Toyota Tsusho, Go Gas, Larsen & Toubro and Fius Capital, Orascom with Petrojet, Petrofac and Stroygazconsulting, Punj Lloyd Group and Mass Global International (Iraq)