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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Worth 8 billion dollars.. Iraq puts the final touches on the Al-Faw refinery deal

    Rocky
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    Worth 8 billion dollars.. Iraq puts the final touches on the Al-Faw refinery deal Empty Worth 8 billion dollars.. Iraq puts the final touches on the Al-Faw refinery deal

    Post by Rocky Sat 25 May 2024, 6:54 am

    Worth 8 billion dollars.. Iraq puts the final touches on the Al-Faw refinery deal

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    Economy News - Baghdad
     
     
    [rtl]Iraq signed a contract with the state-owned China National Chemical Engineering Corporation to build a refinery with a capacity of 300,000 barrels per day at the FAO warehouse on the southern coast of Basra.[/rtl]
    [rtl]The Oil Ministry has suffered several false starts in its attempts to build the Al-Faw refinery over the past seven years, but the contract signed in Baghdad on May 15 is a final and binding deal, according to several Oil Ministry officials.[/rtl]
    [rtl]A senior ministry official said the refinery is expected to cost $8 billion, with the total cost of the project rising to $20 billion with the expected construction of a petrochemical plant and a 2,000 megawatt power plant. The Iraqi state is a 20 percent partner in the contract.[/rtl]
    [rtl]According to Ibrahim Abdel Zahra, deputy director general of the state-run Iraqi Southern Refineries Company, the Iraqi stake will be owned by the company with the associated financial obligations “borne by the Ministry of Finance.”[/rtl]
    [rtl]The Ministry of Oil first announced the Al-Faw refinery opportunity in March 2017 as an “export refinery” with a capacity of 300,000 barrels per day to be built on the Al-Faw Peninsula, which is being developed into a major industrial hub. This raised some hopes that Iraq could attract investors who had turned away from other projects that would have forced them to sell fuel in the subsidized domestic market.[/rtl]
    [rtl]Iraq signed a non-binding agreement in 2018 with a consortium of PowerChina and Norinco, but that deal did not move forward.[/rtl]
    [rtl]The project was then revived during the era of former Oil Minister Ihsan Ismail. In December 2021, the state-run Southern Refineries Corporation (SRC) signed a master agreement for CNCEC and its subsidiary Hualu. But this happened during the period of transitional rule after national elections, and it was not clear whether the agreement would advance under the subsequent government.[/rtl]
    [rtl]According to a senior official at the Ministry of Oil, the delay between the main agreement and contract signing was largely due to the time it took CNCEC to secure financing.[/rtl]
    [rtl]One of the obstacles to previous refinery projects in Iraq was the difficulty of finding viable sources of financing. Lenders have been particularly skeptical about supporting refinery projects in Iraq because the subsidized fuel market makes revenues and profit margins difficult to predict.[/rtl]
    [rtl]The official said: “The financing comes from the Chinese investor, and from Chinese banks and financial institutions.” “It took two years to fully submit the financing papers. Then the contract was signed.”[/rtl]


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