Iraq’s Ministry of Oil is considering a massive strategic proposal from a Hong Kong-based investment firm to construct a nationwide network of oil and gas pipelines, a move aimed at bypassing maritime chokepoints amid escalating regional conflict.

Economic expert Nabil al-Marsoumi said that Heritage Funds LPF offered to finance and build the infrastructure under an Engineering, Procurement, and Construction (EPC) model. 

In a bid to ease Baghdad’s liquidity crisis, the firm proposed a barter agreement, accepting crude oil as payment for the multi-billion-dollar ventures.

The proposal arrives as the Strait of Hormuz remains closed due to the ongoing conflict involving the U.S., Israel, and Iran. The maritime blockade has paralyzed Iraq’s southern terminals, causing exports to plummet from 4.3 million barrels per day to approximately 800,000.

The proposed network features two primary corridors:

Simultaneously, state-run crews are working 24 hours a day in Saladin province to rehabilitate the existing northern export pipeline. 

Hadeer Jaloub, an official with the Oil Projects Company, confirmed Saturday that teams are conducting hydrostatic testing on the 970-kilometer Kirkuk-to-Ceyhan link.

The ITP has been largely idle since 2014 following militant attacks, but recent Baghdad-Erbil agreements have already seen 250,000 barrels per day flowing through the route as of mid-March.

Oil Minister Hayan Abdul Ghani said the government is studying all alternatives to ensure export continuity. 

While domestic refineries are currently running at full capacity to meet local demand, the transition to a regional energy hub remains dependent on long-term political stability and complex diplomacy with neighboring states.