Iraq Reopens North Refinery in Baiji Closed for a Decade 

In this handout picture released by Iraq's Prime Minister's Media Office on February 23, 2024, workers pose for a picture with PM Mohammed Shia al-Sudani (C) during a ceremony held on the occasion of the reopening of North Oil Refinery in Baiji, north of Baghdad. (Iraqi Prime Minister’s Press Office / AFP)
In this handout picture released by Iraq's Prime Minister's Media Office on February 23, 2024, workers pose for a picture with PM Mohammed Shia al-Sudani (C) during a ceremony held on the occasion of the reopening of North Oil Refinery in Baiji, north of Baghdad. (Iraqi Prime Minister’s Press Office / AFP)
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Iraq Reopens North Refinery in Baiji Closed for a Decade 

In this handout picture released by Iraq's Prime Minister's Media Office on February 23, 2024, workers pose for a picture with PM Mohammed Shia al-Sudani (C) during a ceremony held on the occasion of the reopening of North Oil Refinery in Baiji, north of Baghdad. (Iraqi Prime Minister’s Press Office / AFP)
In this handout picture released by Iraq's Prime Minister's Media Office on February 23, 2024, workers pose for a picture with PM Mohammed Shia al-Sudani (C) during a ceremony held on the occasion of the reopening of North Oil Refinery in Baiji, north of Baghdad. (Iraqi Prime Minister’s Press Office / AFP)

Iraq reopened on Friday what was once the country's largest oil refinery, a step the government hopes will lead to an end to its dependence on fuel imports.  

The North Refinery in the city of Baiji, 200 kilometers (124 miles) north of Baghdad, was heavily damaged in some of the fiercest battles with the ISIS group after it swept across a third of Iraq in 2014.  

After the facility's full rehabilitation, "the refinery's effective capacity is 250,000 barrels per day," Assem Jihad, the spokesman for Iraq's oil ministry, told AFP.

Two smaller production units at the refinery complex were opened in recent years, but Friday's reopening restored the refinery closer to its previous capacity, with an additional unit capable of producing 150,000 bpd.

"With this accomplishment, we are getting closer to meeting the country's (oil) derivative needs no later than mid next year," Prime Minister Mohammed Shia al-Sudani's office said, adding that doing so would enable Iraq to end its fuel imports.  

The oil-rich country "produces four million barrels a day, but still imports oil derivatives," Sudani added during the inauguration ceremony aired on state television.  

Constructed in 1975, the refinery produced up to 300,000 barrels per day (bpd) before ISIS seized the city of Baiji -- Iraq's one-time industrial hub -- in June 2014.  

Government forces retook the facility and the city in October 2015 during fierce clashes with the extremists, but severe damage meant the refinery remained closed for years.  

Other refineries operate in Iraq, with facilities in the south recording a production capacity of 280,000 bpd, according to Jihad.  

In April, Iraq inaugurated an oil refinery in the central city of Karbala with a capacity of 140,000 bpd.  

Ravaged by decades of conflict, Iraq's crumbling infrastructure and endemic corruption have obstructed reconstruction efforts.  

Despite its tremendous oil wealth, the country remains dependent on imports to meet energy needs.  

Iraq has 145 billion barrels of proven oil reserves amounting to 96 years' worth of production at the current rate, according to the World Bank.  

Crude oil sales make up 90 percent of the Iraqi budget's revenues.



Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.