The war between the United States and Iran , with the consequent closure of the Strait of Hormuz , has led companies to seek alternatives for transporting oil and other products without becoming hostages to the situation at one of the most strategic and vulnerable points in the global energy market.
Chevron is the latest company in this situation. The American oil company intends to sign agreements to invest in two oil fields in Iraq. To this end, it is considering joining a consortium of investors evaluating the construction of an oil pipeline to connect the country's oil-producing region to the Syrian coast, according to reporting by The Wall Street Journal (WSJ) .
According to the report, which cited company sources, Chevron and the consortium, whose participants were not revealed, are considering rebuilding the oil pipeline that connects Kirkuk, in northern Iraq , to the Syrian port of Baniyas on the Mediterranean Sea, which has been closed for more than two decades. The infrastructure was damaged during the American invasion of Iraq in 2003.
The consortium plans to conduct technical studies to determine whether to build a new pipeline or modernize existing infrastructure, which would be connected to pipelines that cross Turkey , said one of Chevron's executives, who was not identified in the report.
Finding an alternative to the Strait of Hormuz is crucial for Chevron to invest in two important Iraqi oil fields: West Qurna 2 and Nasiriyah.
Just days before the start of the war with Iran, Chevron announced the beginning of exclusive negotiations with the state-owned Basra Oil to acquire a stake in West Qurna 2, one of the world's largest onshore oil fields.
Iraq has withdrawn operations from Russia's Lukoil oil field, located in the south of the country, about 65 kilometers north of Basra. The asset produces approximately 460,000 barrels of oil per day. At the time, Chevron received exclusive negotiating rights for one year to finalize the agreement.
Iraq and other Middle Eastern countries are also seeking alternatives to the Strait of Hormuz, which Tehran attempted to close and control after attacks carried out by the United States and Israel.
About 20% of the world's oil passed through the strait before the start of the war with Iran. Iraq, the second largest producer of the commodity in the Middle East and responsible for about 5% of global oil consumption, with a production of approximately 4.5 million barrels per day, depends on the strait to transport the production from its fields located in the south of the country.
Dubai is also exploring an alternative to the Strait of Hormuz. DP World, the emirate's state-owned port operator, plans to build a new port and container terminal in Fujairah, one of the seven emirates that make up the United Arab Emirates (UAE).
The project aims to reduce Dubai's dependence on the Jebel Ali hub. Considered the "crown jewel" of DP World, which in two decades has become one of the world's largest port operators, Jebel Ali is a key pillar of Dubai and the United Arab Emirates' strategy to reduce dependence on oil and gas by focusing on logistics, trade, and services.
The problem is that the hub is located on the coast of the Persian Gulf, about 150 kilometers southwest of the Strait of Hormuz, leaving it at the mercy of what happens in the passage. Every ship departing from the main ports of the Gulf, including Jebel Ali, needs to cross the strait to reach international markets.
During the period of greatest tension, maritime traffic through the strait decreased significantly due to increased risks to vessels and insurance costs.
Before the conflict, around 135 ships crossed the passage daily, but that number has barely exceeded 40 since the United States and Iran signed a brief ceasefire in mid-June.
