Iraq and Syria have signed an agreement to rehabilitate the crude oil pipeline linking Haditha in Iraq with Baniyas in the war-ravaged country, reported the Iraqi News Agency (INA). 

A vital project for the region, it is likely to be implemented by US energy company Chevron.

Welcoming the agreement, US described it as a step towards strengthening regional connectivity. “The United States welcomes the signing of a historic MoU between the governments of Iraq and Syria regarding the rehabilitation and reconstruction of the Iraq-Syria crude oil pipeline," the US Embassy in Baghdad said in a statement.

The embassy said the project would enhance regional security and stability by improving connectivity and economic prosperity, adding that US companies would play a key role in carrying out the construction work.