Partial operation for the Iraqi- Syrian oil pipeline
Jordan-Iraq, Economics, 11/9/2000

Oil experts have expected the operation of the Syrian- Iraqi oil pipeline in the coming days following a cessation of 18 years.

The London-based al-Hayat daily said in its today's issue that the Syrian- Iraqi decision is to re-operate the pipeline and to contribute to lifting the sanctions imposed on the Iraqi people " without violating the UN security council resolutions." A matter which means that Iraq will export 200 to 300 thousand barrels of oil per day at " reduced prices." This will help Damascus to raise its oil exports and benefit from the price differential.

The value of the Syrian revenues from the margin of difference in the preferred oil price will be between US $ 500, 000 to one million per day. The Syrian total production of oil is 600,000 barrels of oil, half of which are exported to the world market.

Both Washington and London rejected the Syrian- Iraqi decision, but experts believe that exporting the Iraqi oil to Syria at " reduced prices ", the same as is being done with Jordan, is not a "violation to the UN security resolutions."

One expert said that the UN resolution 986 (governing the oil-for-food program ) had set two gates for exporting the Iraqi oil, The Turkish port of Jeihan and the Iraqi al-baker port, adding that this resolution did not ban exporting oil at reduced prices to other countries.

The experts added that the Iraqi side told the UN Secretary General Kofi Annan that during the negotiations on the " Oil for food" memorandum in 1996 that Baghdad " intends to use a third gate for exportation which is Syria."

Syrian- Iraqi negotiations over oil started in 1997 after months of re-launching closeness between Damascus and Baghdad. Then thoughts were exchanged in the area of oil cooperation including re-operating Karkouk- Banias oil pipelines which is closed since 1982 and cooperation to install a new pipeline at a capacity of 1.4 million barrels every day as well as building a refinery near Banias of a refining capacity of 140,000 barrels every day.

Previous Stories:
  Oil agreement between Iraq and Jordan   (11/4/2000)
  Jordan negates a dispute with Iraq concerning commercial protocol   (9/22/2000)
  Iraqi - Jordanian discussions for developing economic cooperation   (6/12/2000)

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