Oil exports from the disputed province of Kirkuk have been stalled since Iraqi Forces and Iranian-backed Shia Hashd al-Shaabi militias launched an attack on the oil-rich territory.
The new pipeline will replace an old and severely damaged section of the Kirkuk-Ceyhan pipeline.
The new pipeline is to stretch for around 250 kilometres (150 miles) from the area of Baiji, in the province of Salaheddine to the south of Kirkuk, to the Fishkhabur border post with Turkey further north.
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The main pipeline the Iraqi Government used to transport some 600,000 barrels per day (BPD) from Kirkuk to Ceyhan was rendered inoperable in 2014 after it was targeted by militant groups, notably the Islamic State (IS).
"The old pipeline has been severely damaged due to the repeated subversive operations of Daesh gangs", oil ministry spokesman Asem Jihad said, adding: "Specialized companies will be invited soon for presenting tenders".
Exports from oilfields in Kirkuk have been on hold since Iraqi government forces took control of them from the Peshmerga last month in retaliation for KRG's referendum on independence which was widely opposed by Turkey, Iran and Western powers.
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