Iraq is close to finalizing a deal with BP PLC and Eni SpA for an export pipeline project initially planned in a $53 billion transaction with Exxon Mobil Corp., Reuters reported Aug. 8, citing unnamed sources.
The sources told Reuters that BP will finance the project while Eni will handle the engineering, procurement and construction tendering aspects. BP will recover payments by taking oil shipments rather than cash, and Eni will be paid in cash for its work.
Under the proposed $400 million deal, BP and Eni will run the project to replace two seabed oil pipelines for Iraq's southern exports through the Gulf, Reuters said.
The pipeline system includes an idled line that transports crude to the Khor al-Amaya terminal, which has had no loading operations since 2017 due to pipeline ruptures and leaks.
The other pipeline is operating at partial capacity to ship crude oil to the Basra offshore terminal.
The project was initially set to be part of a $53 billion deal with Exxon but was held back by contract negotiations and security concerns.