The Iraqi Ministry of Oil signed a preliminary agreement with an Emirati company to build an oil refinery with a capacity of 100,000 b/d, southern Dhi Qar province.
Undersecretary for Liquidation Affairs, Hamid Yunus, said, “the Iraqi South Refineries Company has agreed with the Emirati Al-Awsat Company to increase petroleum fuels production capacity”.
General manager of the state-owned SRC, Hussam Wali, said the final contract would be completed within three months.
Iraqi government data show that Iraq oil derivatives imports worth $5 billion (around 600,000 b/d) annually.
The oil ministry spokesman, Asim Jihad, said, “Dhi Qar refinery production will be in accordance with the European standard Euro 5“.
The statement said the oil refinery would provide 3,000 jobs for Iraqis during construction and operation.
He also said the project needs support from the Prime Minister to encourage investment in the liquidation sector.
Undersecretary of the Ministry of Oil, Hamid Al-Zobaie previously said, “Iraqi Ministry of Oil has a plan to raise crude oil refining capacity from 680,000 to 1,140,000 b/d during the next two years”.
He said this is possible “through adding new units to the existing refineries operating in Baghdad, Basra and Baiji, or building new refineries with the capacity of 150,000 b/d each in Maysan, Kirkuk and Dhi Qar governorates”.
The ministry aims to “cover the local oil products consumption”.
The government will also “build Al-Faw refinery in Basra, with a capacity of 300,000 b/d”.
Al-Zubair said the government would complete Karbala refinery construction, which expected to operate with a capacity of 140,000 b/d.
Iraq’s largest two refineries are the Dora refinery, which operates with about 210,000 b/d capacity, and the Basra refinery with 250,0000 b/d capacity. The country also has 11 smaller refineries in different regions of the country.