World's Energy

26 March 2008 - Upstream OnLine - Russia's Stroytransgaz has inked a deal with Iraq to reactivate an oil export pipeline to Syria's Mediterranean terminal of Banias. US forces bombed the 300,000 barrel per day pipeline on the Iraqi side during the 2003 invasion that removed Saddam Hussein from power. According to Reuters, resumption of Iraqi oil exports through Banias would net Syria an estimated $1 to $1.5 billion a year in transit fees. A statement by Stroytransgaz said: "The participation of Stroytransgaz in this project will represent a substantial contribution by Russian firms to reconstruction and modernisation of Iraqi economic infrastructure." Last week, Russian President Vladimir Putin wrote a letter to Iraqi Prime Minister Nuri al-Maliki calling on him to support Russian investments in the country. The letter was sent as a delegation of Russian businessmen was visiting Baghdad. The delegation included the head of oil major Lukoil , which is trying to revive a $3.7 billion Saddam Hussein-era deal to develop the West Qurna oilfield, one of Iraq's largest. Putin specifically mentioned in his letter a project to rebuild the Kirkuk-Banias pipeline and West Qurna. Iraq has repeatedly said the West Qurna deal had been cancelled and Lukoil would have to compete with other firms at a new tender.