TEMPO.CO, Jakarta – The United States (US) Department of State announced on Friday, July 17, 2026, that an international consortium led by a US company will assist in the restoration of the Kirkuk-Baniyas oil pipeline, built in Iraq and Syria.
"The United States welcomes the intention of the Government of the Republic of Iraq and the Government of the Syrian Arab Republic to promote the rehabilitation and reconstruction of the Iraq-Syria crude oil pipeline," said an official statement from the US State Department.
According to the State Department, it welcomes the involvement of the US-led international consortium in handling the technical and financial aspects of this project.
After restoration, the historic pipeline is expected to have an initial distribution capacity of 2 million barrels of crude oil per day (bpd).
"The commitment of both countries (Iraq and Syria) to work together to revitalize and operate this oil pipeline, create a legal framework, and collaborate constructively with the consortium will enhance security, stability, and prosperity (in the region)," the statement added.
Syria's state-owned oil company, the Syrian Petroleum Company, has signed a memorandum of understanding (MoU) with an international consortium consisting of two US companies, Chevron and Capital TI, and Qatar's UCC Holding.
The consortium will be tasked with preparing technical and financial studies for the pipeline restoration project.
This collaboration comes amidst US government efforts to weaken Iran's influence over the global energy supply chain amid the ongoing conflict in the Strait of Hormuz.
Iran and the US previously signed a memorandum of understanding in mid-June 2026 discussing efforts to end the conflict between the two countries, which began with the US attack on Iran on February 28.
However, since July 8, the US military has launched a series of attacks against Iran. US Central Command (CENTCOM) claims the attacks were in retaliation for Iranian interference in shipping activities in the Strait of Hormuz.
Meanwhile, Iran responded by attacking several US military bases in Kuwait, Bahrain, and Jordan.
Throughout the first phase of the conflict, global energy prices soared due to shipping disruptions experienced by commercial vessels and oil tankers transiting the Strait of Hormuz.
The Kirkuk-Baniyas oil pipeline first became operational in 1952. Throughout its history, the pipeline's operation was halted several times, most notably due to sabotage during the Suez Crisis or the Second Arab-Israeli War in 1956.
Furthermore, Iraq unilaterally shut down the pipeline between 1982 and 2000 due to Syria's support for Iran during the Iraq-Iran War.
The pipeline ultimately became completely inoperable after being destroyed by US airstrikes during the 2003 invasion of Iraq.
Read: Iran's Oil Supply Threat Extends Beyond Strait of Hormuz
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