Iraq-Syria Reopen Rabia Border After 10 Years: Major Boost for Oil Supply Routes

A significant development has occurred for Iraq, one of the primary nations from which India procures crude oil. The border crossing between Iraq and Syria, which had been closed for over 10 years, has been reopened. This crossing is known as Rabia in Iraq and Yaarubia in Syria. The border was initially closed in 2011 following the outbreak of the civil war in Syria.

Reopening of the Rabia-Yaarubia Border Crossing

Following the 2011 closure, the Islamic State (ISIS) seized control of the area in 2014. It was later reclaimed by Iraqi Kurdish forces. On Monday, officials from both nations met to officially reopen the border, discussing measures to enhance trade and facilitate easier movement. Nadia al-Jubouri, a leader from Iraq's Nineveh province, stated that this reopening would boost trade and provide a major route for oil supply. This is particularly relevant for India, as one-fifth of its total oil imports originate from Iraq.

Reducing Dependency on the Strait of Hormuz

Iraq's economy is heavily reliant on oil, with nearly 90% of its budget derived from oil sales. To date, the majority of Iraqi oil has been exported via sea routes through the Strait of Hormuz, while this is a critical maritime passage, as roughly 20% of global oil transit occurs here. The reopening of the land border crossing provides Iraq with an alternative export route, potentially reducing dependency on the maritime path, especially during periods of tension in the Strait of Hormuz.

Land Route Oil Deal and SOMO’s Strategic Plan

Omar al-Waeli, head of Iraq's Border Ports Commission, noted that the reopening would alleviate pressure on the Al-Waleed crossing, which had served as Iraq's primary route. The new arrangement is expected to reduce transport and supply-related hurdles. Iraq's state-owned oil marketing company, SOMO, is now working on a plan to transport oil by land through Syria, while 5 lakh metric tons of fuel oil per month through this route.

Current Status of Iraq’s Major Oil Pipelines

Iraq possesses five major oil pipelines, of which only two are currently operational while three remain closed. The most significant active line is the Kirkuk-Ceyhan pipeline, which transports oil from Kirkuk in northern Iraq to the port of Ceyhan in Turkey. On top of that, the Iraq Strategic Pipeline is operational within the country, consisting of a network of three parallel lines designed to transport oil from Basra in the south to Anbar.

The majority of Iraq's oil continues to be exported through southern terminals in the Persian Gulf. Several major pipelines remain defunct; for instance, the Kirkuk-Baniyas pipeline, which led to the Mediterranean Sea via Syria, has been closed since 2003. Similarly, the Iraq Pipeline through Saudi Arabia (IPSA) has remained inactive since the 1991 Gulf War.