Iraqi Council of Ministers, led by Prime Minister Mohammed Shia' Al-Sudani, has officially cleared the way for a major expansion of the nation's energy infrastructure by authorizing direct bidding for the Basra–Haditha crude oil pipeline.

In a move to accelerate the project, the council approved an amendment to Resolution No. 578 of 2025. 

This decision empowers the Ministry of Oil to bypass traditional open tender protocols and directly invite specialized international firms to submit bids for the construction of the strategic corridor.

The project, estimated to cost 5.97 trillion Iraqi dinars (approximately $4.56 billion), is designed to reshape Iraq’s export logistics, transporting crude from the southern oil hubs to the northern regions.

With the country ramping up efforts to boost export capacity amid the heightened tensions in the Middle East, the pipeline provides a vital alternative to the Strait of Hormuz, a maritime chokepoint often subject to geopolitical volatility.

According to ministry data and previous reports, the pipeline is expected to be a massive undertaking, spanning approximately 685 kilometers (425 miles), with a capacity of up to 2.25 million barrels per day (bpd).

While currently in the design phase, the Ministry of Oil has indicated that the scope of the project could eventually extend beyond Iraq's borders. 

Future plans include potential extensions into Jordan and Syria, which would further diversify Iraq’s access to international markets.

The Basra–Haditha project is part of a broader push by Baghdad to modernize its aging infrastructure and stabilize export volumes. 

In tandem with this project, Iraq is moving forward with the rehabilitation of the Kirkuk–Fishkhabur pipeline, which is slated to reach an initial capacity of 350,000 bpd.

The developments come at a time when Iraq is looking for alternative routes to exporting its oil, bypassing the Strait of Hormuz.