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Iraq Starts Expansion of Shinafiyah Refinery 

An Iraqi flag is seen at an oilfield. (Reuters)
An Iraqi flag is seen at an oilfield. (Reuters)
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Iraq Starts Expansion of Shinafiyah Refinery 

An Iraqi flag is seen at an oilfield. (Reuters)
An Iraqi flag is seen at an oilfield. (Reuters)

Prime Minister Mohammed Shia al-Sudani announced on Saturday the beginning of the Shinafiyah refinery expansion in Al Diwaniyah in southern Iraq. 

During his visit to the province, the PM confirmed the government will to develop the oil sector and complete the projects that meet the needs of the people.  

The Iraqi News Agency cited Sudani as saying: "Designs have been put in place for the expansion of Shinafiyah refinery, which will increase the production capacity of the refinery from 20,000 to 90,000 barrels per day, in addition to a refining unit with a capacity of 70,000 barrels per day."  

He stressed that he directed that production be compatible with environmental requirements.  

The Prime Minister stated that this increase would help in reducing the import of gasoline and gas oil, and the provision of surplus quantities of liquid gas and fuel oil products, which have a significant economic return.  

“The project will also provide up to 3,000 job opportunities, to employ local manpower," he added.  

According to shipping data, Iraq also increased exports to Europe by more than 20 percent in the past five months.  

European refiners have found themselves oversupplied with crude as an expected shortage owing to the looming EU ban on Russian oil has yet to materialize.  

Iraq, OPEC's second-largest producer behind Saudi Arabia, has been pumping about 4,652,000 barrels of crude a day this year. It plans to increase oil production to eight million barrels per day (BPD) by the end of 2027. 

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BP Nears Deals for Oil Fields, Curbs on Gas Flaring in Iraq

British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
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BP Nears Deals for Oil Fields, Curbs on Gas Flaring in Iraq

British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)

Iraq and British oil giant BP are set to finalize a deal by early February to develop four oil fields in Kirkuk and curb gas flaring, Iraqi authorities announced Wednesday.

The mega-project in northern Iraq will include plans to recover flared gas to boost the country's electricity production, they said.

Gas flaring refers to the polluting practice of burning off excess gas during oil drilling. It is cheaper than capturing the associated gas.

The Iraqi government and BP signed a new memorandum of understanding in London late Tuesday, as Prime Minister Mohammed Shia al-Sudani and other senior ministers visit Britain to seal various trade and investment deals.

"The objective is to enhance production and achieve optimal targeted rates of oil and gas output," Sudani's office said in a statement.

Iraq's Oil Minister Hayan Abdel Ghani told AFP after the new accord was signed that the project would increase the four oil fields' production to up to 500,000 barrels per day from about 350,000 bpd.

"The agreement commits both parties to sign a contract in the first week of February," he said.

Ghani noted the project will also target gas flaring.

Iraq has the third highest global rate of gas flaring, after Russia and Iran, having flared about 18 billion cubic meters of gas in 2023, according to the World Bank.

The Iraqi government has made eliminating the practice one of its priorities, with plans to curb 80 percent of flared gas by 2026 and to eliminate releases by 2028.

"It's not just a question of investing and increasing oil production... but also gas exploitation. We can no longer tolerate gas flaring, whatever the quantity," Ghani added.

"We need this gas, which Iraq currently imports from neighboring Iran. The government is making serious efforts to put an end to these imports."

Iraq is ultra-dependent on Iranian gas, which covers almost a third of Iraq's energy needs.

However, Teheran regularly cuts off its supply, exacerbating the power shortages that punctuate the daily lives of 45 million Iraqis.

BP is one of the biggest foreign players in Iraq's oil sector, with a history of producing oil in the country dating back to the 1920s when it was still under British mandate.

According to the World Bank, Iraq has 145 billion barrels of proven oil reserves -- among the largest in the world -- amounting to 96 years' worth of production at the current rate.