The US State Department on Wednesday welcomed Iraq's and Syria's decision to prioritize reconstruction of the Iraq-Syria crude oil pipeline, describing it as a strategically important regional infrastructure project and backing a US-led international consortium to carry out the technical and financial work.
The department said the rehabilitated pipeline would initially be capable of transporting 2 million barrels of crude per day from Iraq to Mediterranean export markets, calling the announcement "an important milestone" for the region and for relations between Baghdad and Damascus.
The renewed push comes during the US-Iran war, which has sharply reduced traffic through the Strait of Hormuz, a waterway that carried about one-fifth of global oil supplies before the conflict.
US ambassador to Turkey and special envoy for Syria and Iraq Tom Barrack said Iraqi Prime Minister Ali al-Zaidi's plans to develop alternative export corridors were aligned with broader regional efforts involving Syria, Jordan, Turkey, Lebanon and Egypt.
He said the projects could make Hormuz "an afterthought" for Iraq within two years.
Chevron is in advanced discussions with Los Angeles-based TI Capital and Qatar's UCC Holding to form a consortium for a pipeline network linking southern Iraqi oilfields to the Mediterranean through Syria, the Financial Times reported.
The proposed system would include one line running north from southern Iraq toward Kirkuk and another extending west to the Syrian port of Baniyas.
In parallel, Iraq's cabinet has approved preliminary studies of routes from Basra through Haditha to either Baniyas or Turkey's Mediterranean export terminal at Ceyhan. The approvals do not create binding financial or contractual obligations for Iraq's Oil Ministry.
US Representative Joe Wilson, a Republican from South Carolina, praised Barrack's efforts, saying pipelines through Syria and Turkey could help replace export capacity threatened by Iran's actions around Hormuz.
He estimated the broader network could eventually transport 2.5 million barrels per day to the Mediterranean or Turkey and reduce Baghdad's dependence on Tehran.
Oil prices have climbed during the renewed fighting, with Brent crude settling at $88 a barrel on Friday, its highest level in a month.
The proposed routes remain subject to feasibility studies and would face significant financing, construction and security challenges before becoming operational.