Iraq’s cabinet approves major oil sector projects
Shafaq News/Iraq’s Prime Minister Mohammed Shia al-Sudani chaired the 53rd regular sessionof the Council of Ministers on Monday, approving several initiatives in the oilsector.
Basra-HadithaOil Pipeline Project
The Councilapproved the recommendation of the Ministerial Energy Council to proceed withthe construction of the Basra-Haditha oil pipeline, a 685-kilometer pipelinewith a capacity of 2.25 million barrels. Key decisions included:
1. ContractApproval: A contract worth 5.97225 trillion dinars between Basra Oil Companyand the Oil Projects Company, funded under the Iraq-China agreement.
2.ReducedCost Procurement: Approval of a procurement order for the pipeline at 1.6205trillion dinars, 5.5% below estimated costs. The pipeline will be constructedusing high-quality materials and completed within 720 days.
3. ContractExemptions: The project was exempted from Government Contract ExecutionInstructions (No. 2 of 2014) to facilitate streamlined execution.
KarbalaRefinery Operations
The Councilalso addressed the operational file of the Karbala Refinery, approving thefollowing measures:
1.Operational Contracting: The Midland Refineries Company was exempted fromstandard contracting regulations to engage Rowwad-Elqemma Company for refineryoperations at $180 million annually, renewable for an additional year. Thiscontract includes operational, laboratory, maintenance, and safetyresponsibilities, alongside training and local staff transfer, at a lower costthan the previous contractor.
2.Management Team Formation: A dedicated management team, led by the generaldirector of the Midland Refineries Company, was formed to oversee refineryoperations. This team was granted financial and contractual authority, with aspending cap of $15 million for operational needs.
