Iraq and Jordan may hold a partial initial public offering listing 25 percent of a $18bn pipeline that will export oil from the southern city of Basra to the kingdom's port city of Aqaba, Jordan Times reported, citing Fareed Al Ayobi, president of the oil and gas committee at the Basra Provincial Council.
The 1,680-kilometre pipeline will pump one million barrels of oil per day from Basra to Jordan’s Aqaba Port and around 258 million cubic feet of gas, the newspaper reported, citing Jamal Faleh, head of design directorate at the Iraqi oil ministry.
About 150,000 barrels of oil and 100 million cubic feet of natural gas will meet Jordan’s needs, while the rest of the oil will be exported through Aqaba and the remaining natural gas will be used to run the pumping stations along the double pipeline, the newspaper reported. Basra pumps about 2.3m barrels per day, or about 70 percent of Iraq’s total oil production.
The pipeline which will be operational by 2017, will create about 10,000 jobs and help Jordan, which has scarce natural resources and imports more than 90 percent of all its energy needs (the daily equivalent of 100,000 barrels of a oil a day) to be more independent and generate US$3bn a year in revenues.
The kingdom until recently was dependent on Egypt for its gas supply, which has caused its public debt to soar.
Energy imports in the kingdom increased to 19 percent of GDP in 2011 from 9 percent in 2003 on the back of higher imports for generating electricity.
The two countries are expected set up the framework for the biding process, the newspaper reported last week, citing Jordanian and Iraqi officials attending the Basra Investment Conference.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.