Chevron weighs new Iraqi oil pipeline to avoid Strait of Hormuz during Iran war

Chevron reportedly plans to sign early-stage deals Friday to invest in Iraqi oil fields and consider the construction of a pipeline connecting Iraq’s reservoirs to the Syrian coast as oil majors seek workarounds for the Strait of Hormuz.As the US and Iran have renewed strikes in the Middle East, major oil producers – including Iraq – have been desperately searching for alternatives to the strait, a vital maritime route for 20% of the world’s oil supplies that has been effectively blockaded during the war.Nations across the Persian Gulf have poured billions of dollars into new pipelines, rail corridors and energy storage hubs to skirt around the strait – and now Chevron is considering getting in on the action, according to the Wall Street Journal.The Houston, Tex.-based oil major is considering rebuilding a pipeline from Kirkuk, Iraq, to the Syrian port of Baniyas on the Mediterranean Sea, a senior Chevron official told the outlet.An oil pipeline tracing along that route has been shut down for more than two decades after it was badly damaged in 2003 during the US’ invasion of Iraq.Chevron will join a consortium of investors that plan to conduct studies to determine whether they should build a new pipeline in its place or update existing infrastructure, according to the exec.The company has been in talks with the Iraqi government for 12 to 18 months and the preliminary deals are a “long ways from the finish line,” he said.On Thursday, Iraqi Prime Minister Ali Al Zaidi visited Chevron’s headquarters in downtown Houston to meet a group led by Chevron Vice Chairman Mark Nelson.The prime minister met with President Trump in the Oval Office on Tuesday.“The United States is facilitating conversation between Iraq and Syria on future energy development projects and supports the growing diplomatic relationship between the two countries,” a senior Trump administration official told The Post.Chevron confirmed it is discussing possible investments in two Ira...