The Ministry of Oil plans to increase the capacity of oil refining in Iraq at a rapid pace
February 09 2018 10:14 p
February 09 2018 10:14 p
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The Iraqi Oil Ministry confirmed on Thursday that it signed an agreement to build an oil refinery near the northern city of Kirkuk with a capacity of about 70 thousand barrels per day. The agreement was signed with Rania International, based in the semi-independent Kurdistan region, and the company will be an investor in the refinery.
The project comes after the announcement on January 29 of plans to build a refinery in the port of Faw and three refineries in the southern region of Nasiriyah and in Anbar province west of the country and in Qayara near the city of Mosul in northern Iraq.
The Kirkuk refinery will produce high-octane gasoline and some other petroleum products, the ministry said in a statement, without elaborating on the cost or more information about Rania International.
Iraq had signed an agreement with China's Power China and Nerco to build a 300,000 bpd oil refinery and a petrochemical complex in Basra.
Iraq, OPEC's second-biggest producer, wants to build at least five new refineries after its oil refining capacity has been severely reduced by the damage to the country's largest refinery, Baiji, during a takeover by an organization in mid-2014.
$ 5 billion value of Iraq's annual imports of oil derivatives, according to official data
and recovered Iraqi forces Baiji in 2015 and is expected to resume the refinery work partially this year. Iraq is currently relying on the Dora refinery in Baghdad and Shuaiba in southern Iraq.
The oil ministry announced at the end of last month the start of work on the rehabilitation of Baiji refinery and preparations began to restart the unit capacity of refining 70 thousand barrels per day during the period from 6 to 9 months.
He added in a statement that a second unit of capacity of 70 thousand barrels per day will be operated after that. The Baiji refinery was refining around 175,000 bpd before falling into the grip of a hasty organization.
"The establishment of Kirkuk refinery represents the first step to invest in the refining sector to reach the production capacity of oil derivatives covering the local need in the province and neighboring provinces," Oil Minister Jabbar Laibi said. He added that "the project comes within the plans and programs of the ministry to cover the local need of oil derivatives in the country and work on the export of surplus through investment refineries projects."
It is estimated that it imports $ 5 billion a year in oil derivatives to meet the domestic needs of about 600,000 barrels a day, much of which is used in power plants.
He pointed out that the ministry is exerting efforts "to upgrade the oil industry in Kirkuk province and the implementation of a number of development projects and rehabilitation of oil fields and facilities and infrastructure and the extension of oil pipeline networks."
"The company will work to build the refinery according to international standards and will abide by the dates of completion of construction and operation," said Galal Haji Ahmed, director of Rania Company, which invests in the refinery. Iraqi forces have recovered all oil fields in the oil-rich province of Kirkuk and disputed areas in the northern provinces controlled by Kurds since 2014 because of the chaos left by a terrorist attack.
Analysts say the oil ministry has become the only point of light in Iraq's crippled economy since he took over as deputy director of the ministry in August 2016 and has since begun to repair the chaos that pervaded the ministry at the time.
He began reviewing contracts with foreign oil companies unfairly entered into by Hussein al-Shahristani, who is responsible for the energy file in the government of former Prime Minister Nuri al-Maliki. These contracts give foreign companies significant concessions to cover their expenses without a specific ceiling, as well as up to $ 21 per barrel of oil production.
And accelerated in recent times revealed the Iraqi Oil Ministry yesterday that it signed an agreement to build an oil refinery near the city of Kirkuk in the north of the country with a capacity of about 70 thousand barrels per day. The agreement was signed with Rania International, based in the semi-independent Kurdistan region, and the company will be an investor in the refinery.
The project comes after the announcement on January 29 of plans to build a refinery in the port of Faw and three refineries in the southern region of Nasiriyah and in Anbar province west of the country and in Qayara near the city of Mosul in northern Iraq.
The Kirkuk refinery will produce high octane gasoline and some other petroleum products, the ministry said in a statement , without elaborating on the cost or more information about Rania International.
Iraq had signed an agreement with China's Power China and Nerco to build a 300,000 bpd oil refinery and a petrochemical complex in Basra.
Iraq, OPEC's second-biggest producer, wants to build at least five new refineries after its oil refining capacity has been severely reduced by the damage to the country's largest refinery, Baiji, during a takeover by an organization in mid-2014.
$ 5 billion value of Iraq's annual imports of oil derivatives, according to official data
and recovered Iraqi forces Baiji in 2015 and is expected to resume the refinery work partially this year. Iraq is currently relying on the Dora refinery in Baghdad and Shuaiba in southern Iraq.
The oil ministry announced at the end of last month the start of work on the rehabilitation of Baiji refinery and preparations began to restart the unit capacity of refining 70 thousand barrels per day during the period from 6 to 9 months.
He added in a statement that a second unit of capacity of 70 thousand barrels per day will be operated after that. The Baiji Refinery was recycling about 175,000 bpd before falling into the hands of a terrorist organization.
"The establishment of Kirkuk refinery represents the first step to invest in the refining sector to reach the production capacity of oil derivatives covering the local need in the province and neighboring provinces," Oil Minister Jabbar Laibi said. He added that "the project comes within the plans and programs of the ministry to cover the local need of oil derivatives in the country and work on the export of surplus through investment refineries projects."
It is estimated that it imports $ 5 billion a year in oil derivatives to meet the domestic needs of about 600,000 barrels a day, much of which is used in power plants.
He pointed out that the ministry is exerting efforts "to upgrade the oil industry in Kirkuk province and the implementation of a number of development projects and rehabilitation of oil fields and facilities and infrastructure and the extension of oil pipeline networks."
"The company will work to build the refinery according to international standards and will abide by the dates of completion of construction and operation," said Galal Haji Ahmed, director of Rania Company, which invests in the refinery. Iraqi forces have recovered all oil fields in the oil-rich province of Kirkuk and disputed areas in the northern provinces controlled by the Kurds since 2014, because of the chaos left by an offensive attack.
Analysts say the oil ministry has become the only point of light in Iraq's crippled economy since he took over as deputy director of the ministry in August 2016 and has since begun to repair the chaos that pervaded the ministry at the time.
He began reviewing contracts with foreign oil companies unfairly entered into by Hussein al-Shahristani, who is responsible for the energy file in the government of former Prime Minister Nuri al-Maliki. These contracts give foreign companies significant concessions to cover their expenses without a specific ceiling, as well as up to $ 21 per barrel of oil production.
Recently, efforts to stop the burning of gas associated with oil production have accelerated, and Iraq plans to start exporting gas to Kuwait at a rate of 50 million cubic feet of gas per day, which will later increase to 200 million cubic feet per day.
At the end of last year, the Ministry of Oil set new standards in a contract signed with China's Genghua Company to develop an oil field in eastern Baghdad worth $ 3 billion, which for the first time in decades included the construction of a residential city and service facilities including a school and a medical clinic.
In an atmosphere of optimism to improve the business climate in the Iraqi oil sector, the head of Crescent Petroleum UAE Badr Jafar said yesterday that the company plans to double its production of gas in Iraq within 3 years to reach 500 million cubic feet per day.
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Baghdad Post
[rtl]The Iraqi Oil Ministry confirmed on Thursday that it signed an agreement to build an oil refinery near the northern city of Kirkuk with a capacity of about 70 thousand barrels per day. The agreement was signed with Rania International, based in the semi-independent Kurdistan region, and the company will be an investor in the refinery.
The project comes after the announcement on January 29 of plans to build a refinery in the port of Faw and three refineries in the southern region of Nasiriyah and in Anbar province west of the country and in Qayara near the city of Mosul in northern Iraq.
The Kirkuk refinery will produce high-octane gasoline and some other petroleum products, the ministry said in a statement, without elaborating on the cost or more information about Rania International.
Iraq had signed an agreement with China's Power China and Nerco to build a 300,000 bpd oil refinery and a petrochemical complex in Basra.
Iraq, OPEC's second-biggest producer, wants to build at least five new refineries after its oil refining capacity has been severely reduced by the damage to the country's largest refinery, Baiji, during a takeover by an organization in mid-2014.
$ 5 billion value of Iraq's annual imports of oil derivatives, according to official data
and recovered Iraqi forces Baiji in 2015 and is expected to resume the refinery work partially this year. Iraq is currently relying on the Dora refinery in Baghdad and Shuaiba in southern Iraq.
The oil ministry announced at the end of last month the start of work on the rehabilitation of Baiji refinery and preparations began to restart the unit capacity of refining 70 thousand barrels per day during the period from 6 to 9 months.
He added in a statement that a second unit of capacity of 70 thousand barrels per day will be operated after that. The Baiji refinery was refining around 175,000 bpd before falling into the grip of a hasty organization.
"The establishment of Kirkuk refinery represents the first step to invest in the refining sector to reach the production capacity of oil derivatives covering the local need in the province and neighboring provinces," Oil Minister Jabbar Laibi said. He added that "the project comes within the plans and programs of the ministry to cover the local need of oil derivatives in the country and work on the export of surplus through investment refineries projects."
It is estimated that it imports $ 5 billion a year in oil derivatives to meet the domestic needs of about 600,000 barrels a day, much of which is used in power plants.
He pointed out that the ministry is exerting efforts "to upgrade the oil industry in Kirkuk province and the implementation of a number of development projects and rehabilitation of oil fields and facilities and infrastructure and the extension of oil pipeline networks."
"The company will work to build the refinery according to international standards and will abide by the dates of completion of construction and operation," said Galal Haji Ahmed, director of Rania Company, which invests in the refinery. Iraqi forces have recovered all oil fields in the oil-rich province of Kirkuk and disputed areas in the northern provinces controlled by Kurds since 2014 because of the chaos left by a terrorist attack.
Analysts say the oil ministry has become the only point of light in Iraq's crippled economy since he took over as deputy director of the ministry in August 2016 and has since begun to repair the chaos that pervaded the ministry at the time.
He began reviewing contracts with foreign oil companies unfairly entered into by Hussein al-Shahristani, who is responsible for the energy file in the government of former Prime Minister Nuri al-Maliki. These contracts give foreign companies significant concessions to cover their expenses without a specific ceiling, as well as up to $ 21 per barrel of oil production.
And accelerated in recent times revealed the Iraqi Oil Ministry yesterday that it signed an agreement to build an oil refinery near the city of Kirkuk in the north of the country with a capacity of about 70 thousand barrels per day. The agreement was signed with Rania International, based in the semi-independent Kurdistan region, and the company will be an investor in the refinery.
The project comes after the announcement on January 29 of plans to build a refinery in the port of Faw and three refineries in the southern region of Nasiriyah and in Anbar province west of the country and in Qayara near the city of Mosul in northern Iraq.
The Kirkuk refinery will produce high octane gasoline and some other petroleum products, the ministry said in a statement , without elaborating on the cost or more information about Rania International.
Iraq had signed an agreement with China's Power China and Nerco to build a 300,000 bpd oil refinery and a petrochemical complex in Basra.
Iraq, OPEC's second-biggest producer, wants to build at least five new refineries after its oil refining capacity has been severely reduced by the damage to the country's largest refinery, Baiji, during a takeover by an organization in mid-2014.
$ 5 billion value of Iraq's annual imports of oil derivatives, according to official data
and recovered Iraqi forces Baiji in 2015 and is expected to resume the refinery work partially this year. Iraq is currently relying on the Dora refinery in Baghdad and Shuaiba in southern Iraq.
The oil ministry announced at the end of last month the start of work on the rehabilitation of Baiji refinery and preparations began to restart the unit capacity of refining 70 thousand barrels per day during the period from 6 to 9 months.
He added in a statement that a second unit of capacity of 70 thousand barrels per day will be operated after that. The Baiji Refinery was recycling about 175,000 bpd before falling into the hands of a terrorist organization.
"The establishment of Kirkuk refinery represents the first step to invest in the refining sector to reach the production capacity of oil derivatives covering the local need in the province and neighboring provinces," Oil Minister Jabbar Laibi said. He added that "the project comes within the plans and programs of the ministry to cover the local need of oil derivatives in the country and work on the export of surplus through investment refineries projects."
It is estimated that it imports $ 5 billion a year in oil derivatives to meet the domestic needs of about 600,000 barrels a day, much of which is used in power plants.
He pointed out that the ministry is exerting efforts "to upgrade the oil industry in Kirkuk province and the implementation of a number of development projects and rehabilitation of oil fields and facilities and infrastructure and the extension of oil pipeline networks."
"The company will work to build the refinery according to international standards and will abide by the dates of completion of construction and operation," said Galal Haji Ahmed, director of Rania Company, which invests in the refinery. Iraqi forces have recovered all oil fields in the oil-rich province of Kirkuk and disputed areas in the northern provinces controlled by the Kurds since 2014, because of the chaos left by an offensive attack.
Analysts say the oil ministry has become the only point of light in Iraq's crippled economy since he took over as deputy director of the ministry in August 2016 and has since begun to repair the chaos that pervaded the ministry at the time.
He began reviewing contracts with foreign oil companies unfairly entered into by Hussein al-Shahristani, who is responsible for the energy file in the government of former Prime Minister Nuri al-Maliki. These contracts give foreign companies significant concessions to cover their expenses without a specific ceiling, as well as up to $ 21 per barrel of oil production.
Recently, efforts to stop the burning of gas associated with oil production have accelerated, and Iraq plans to start exporting gas to Kuwait at a rate of 50 million cubic feet of gas per day, which will later increase to 200 million cubic feet per day.
At the end of last year, the Ministry of Oil set new standards in a contract signed with China's Genghua Company to develop an oil field in eastern Baghdad worth $ 3 billion, which for the first time in decades included the construction of a residential city and service facilities including a school and a medical clinic.
In an atmosphere of optimism to improve the business climate in the Iraqi oil sector, the head of Crescent Petroleum UAE Badr Jafar said yesterday that the company plans to double its production of gas in Iraq within 3 years to reach 500 million cubic feet per day.
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