Iraq to Build 5 New Refineries With 790,000 bpd Capacity

Flames emerge from a pipeline at the oil fields in Basra, southeast of Baghdad, Iraq (File photo: Reuters)
Flames emerge from a pipeline at the oil fields in Basra, southeast of Baghdad, Iraq (File photo: Reuters)
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Iraq to Build 5 New Refineries With 790,000 bpd Capacity

Flames emerge from a pipeline at the oil fields in Basra, southeast of Baghdad, Iraq (File photo: Reuters)
Flames emerge from a pipeline at the oil fields in Basra, southeast of Baghdad, Iraq (File photo: Reuters)

The Iraqi Ministry of Oil has announced its intention to select a number of specialized international investment companies to build five new refineries around the country.

The ministry's official, Hamid al-Zobaie, said in a press statement there is a plan to build five refineries across the country through investment and various refining cards, pointing out that the ministry is currently seeking fitted companies to build these refineries.

Zobaie added that qualification and selection processes are to study technical and financial capabilities of the companies, especially that the construction of the refinery requires up to $3 billion. Applying companies must also commit to the deadlines and ensure completion of construction within the schedule.

The official listed the refineries that will be referred to investment: Kirkuk with a capacity of 70,000 barrels per day (bpd), Wasit capacity of 140,000 bpd, Nasiriyah capacity of 140,000 bpd, Basra card 140,000 bpd, and al-Faw capacity of 300,000 bpd.

The ministry is financing Karbala refinery which is about 78 percent completed, and once it is fully constructed, it will provide about 9 million liters per day of high-quality gasoline, in addition to various oil derivatives in accordance with international standards.

Rehabilitation and development operations of refineries are done by Iraqi staff, noted the official, who added that the cost of refinery rehabilitation is much lower than its construction.

The Ministry of Oil has prepared a plan to add fluid catalytic cracking (FCC) units used in petroleum refineries which are used to convert petroleum crude oils into more valuable gasoline.



Putin, Al-Sudani Discuss OPEC+ Coordination on Oil Price Stability

Russian President Vladimir Putin
Russian President Vladimir Putin
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Putin, Al-Sudani Discuss OPEC+ Coordination on Oil Price Stability

Russian President Vladimir Putin
Russian President Vladimir Putin

Russian President Vladimir Putin and Iraqi Prime Minister Mohammed Shia al-Sudani on Thursday discussed the importance of coordination between OPEC and OPEC+ members on oil price stability in a manner that guarantees fair prices for exporters and consumers.

Putin held a phone call with al-Sudani during which they discussed the OPEC+ oil agreement and the situation in the Middle East, the Kremlin said.

The telephone conversation came days prior to an OPEC+ key meeting expected early next month.

Reuters said that OPEC+ may push back output increases again when it meets on Dec. 1 due to weak global oil demand, according to three OPEC+ sources familiar with the discussions. Ministers last shelved the increase for a month when they met virtually on Nov. 3.

In a statement, the Kremlin on Thursday said Putin and Al-Sudani touched upon various aspects of coordination as part of OPEC+, a format that helps maintain stability in the global oil market, and reaffirmed the importance of continuing to coordinate steps in this format.

The Middle East issues were also mentioned in light of the unprecedented escalation of tensions in the region, it added.

The parties also agreed on further contacts at various levels, the statement said.

Later, Al-Sudani’s office said the phone call touched on energy-related matters, highlighting the importance of coordination among all concerned countries within OPEC and the OPEC+ group to stabilize oil and gas prices, ensuring fair pricing for both producers and consumers.