Iraq and Syria have signed a memorandum of understanding (MoU) to build a strategic oil pipeline connecting Haditha in western Iraq to the Mediterranean port of Baniyas on the Syrian coast, officials announced.

The project aims to establish a direct export corridor to European markets.

According to the Syrian Petroleum Company (SPC), the energy transit project is estimated to take two to two-and-a-half years to complete.

Safwan al-Sheikh Ahmad, Director of Communications and Institutions at the SPC, told the state-run Iraqi News Agency (INA) that the bilateral agreement covers initial technical and financial surveys.

The proposed 800-kilometer onshore pipeline will feature a design capacity of approximately 2.5 million barrels per day.

The bilateral MoU coincided with a separate implementation agreement involving U.S. energy giant Chevron, American firm Capital TI, and Qatar’s UCC (Urbacon Trading & Contracting). The consortium will carry out execution works for the pipeline.

High-level coordination between Damascus and Baghdad on energy cooperation has intensified following a recent diplomatic visit to Syria by Iraq’s foreign minister.

During those discussions, officials explicitly explored the prospective role of foreign firms in executing the pipeline infrastructure.

The pipeline initiative follows a recent fuel transport arrangement between Iraq’s State Oil Marketing Organization (SOMO) and the SPC.

Under that deal, Iraqi fuel oil is being trucked across the Al-Tanf border crossing to the Baniyas refinery for re-export to Europe via tankers.

Al-Sheikh Ahmad noted that the completed pipeline will significantly reduce transit costs and alleviate strain on domestic transportation infrastructure in both nations.

He confirmed that the initial MoU is intended to evolve into a binding commercial contract, supported by upcoming mutual delegation visits, technical workshops, and joint field inspections by Iraqi and Syrian engineering teams.

The U.S. State Department welcomed the initiative, which signals renewed international engagement in regional energy infrastructure.

Efforts to reduce dependence on the Strait of Hormuz follow earlier Iraq-Syria talks to revive the defunct oil pipeline, aiming to supply oil to European markets.