Chevron and Iraq are in advanced talks to form a consortium aimed at reviving and building a pipeline network through Syria, offering an alternative to the Strait of Hormuz.

The US oil major is partnering with TI Capital and a group owned by the Syrian-Qatari Al-Khayyat brothers. The plan involves a pipeline from southern Iraq to Kirkuk, and a second line extending west through Syria to the Mediterranean port of Baniyas. This initiative arises as Iraq's oil exports have been severely impacted by the closure of the Strait of Hormuz during the Iran war.

Discussions are ongoing, with a senior Chevron executive noting the project's potential to "provide alternate access to markets." The Iraqi government has authorized the Basra Oil Company to explore export pipeline options. A memorandum of understanding for Chevron to develop two southern Iraqi oilfields is expected soon, coinciding with Iraqi Prime Minister Ali al-Zaidi’s visit to the US. Tom Barrack, a US ambassador and envoy, has reportedly assisted in orchestrating agreements.

Syria seeks to leverage its position as an alternative export route amid efforts to weaken Iran's influence. Iraq, heavily reliant on the Strait for its oil sales, faced a financial crisis when production was cut significantly due to its closure. The conflict has caused major energy supply disruptions, with the Strait normally handling a fifth of global oil and gas supplies. Other Gulf nations are also exploring bypass pipelines.