SEATTLE (Oil Monster): The United States is supporting efforts by Iraq and Syria to revive a crude pipeline between the two countries, which could reduce Iran's ability to block oil supplies through the Strait of Hormuz, a State Department official said on Tuesday.
The U.S. expects American companies to play a role in advancing the construction of the Kirkuk-Baniyas pipeline, which has been mostly out of service since suffering damage during the 2003 U.S.-led invasion of Iraq.
The revitalized pipeline would run from Iraqi oilfields near Kirkuk to Syria's western coast. It is one of several efforts by oil producers in the Middle East to lessen dependence on the strait, through which 20% of the world's oil and gas flowed before the U.S.-Israeli war on Iran began on February 28.
The United States has re-imposed a blockade of the chokepoint between Iran and Oman after strikes on ships in the strait that Washington blamed on Iran.
Bloomberg reported earlier on Tuesday that Chevron could play a role in rebuilding the pipeline.
“As a matter of policy we do not comment on third party statements or matters of a commercial nature," Chevron said in response to a Reuters request for comment.
Courtesy: www.reuters.com
