Japan and Iraq Launch Major Oil Export Reconstruction in Basra

Iraq and Japan have taken a major step to strengthen their long standing partnership in the energy sector with the launch of the Crude Oil Export Facility Reconstruction Project at the Port of Al-Faw in Basra Governorate.

The foundation stone laying ceremony, held on Saturday, was attended by Japan’s Ambassador to Iraq, Akira Endo, and Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayan Abdul Ghani, alongside representatives of the Basra Oil Company and other key stakeholders.

The project, also known as the Third Offshore Pipeline (Sealine 3) Project, aims to modernise Iraq’s oil export infrastructure and increase the Al-Faw terminal’s capacity by 1.5 million barrels per day. Once completed, it is expected to significantly reduce crude oil leaks and enhance the efficiency of Iraq’s national export operations, a vital boost for one of the country’s most important economic sectors.

Originally launched in 2008 with funding from a Japanese yen loan, the initiative includes the construction of onshore crude oil storage and pumping facilities, an offshore loading terminal for mooring buoys, and integrated pipelines connecting both systems. While the majority of the project has already been completed through Japan’s support, the remaining phases will now be implemented with Iraqi government funding.

Ambassador Endo reaffirmed Japan’s commitment to Iraq’s reconstruction. These projects form the largest portion of Japan’s Official Development Assistance (ODA) to Iraq and have played a crucial role in rehabilitating key infrastructure in Basra’s oil, electricity, and water sectors.

Beyond the technical upgrades, the project symbolises a deepening of Japan–Iraq relations, reflecting shared goals of economic growth, sustainable development, and regional stability. 

Source: Embassy of Japan in Iraq