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[size=35][size=35]"Suspicious" details from inside: Karbala refinery will stop.. Iraq received it with 70 defects in collusion with the Korean company (documents) - Urgent[/size][/size]
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2024-10-14 | 05:05
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[You must be registered and logged in to see this link.]News-Special
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But beyond appearances, and going into the depths of the details and backstage, great and dangerous horrors are revealed about the reality of what is happening inside the refinery, according to what was revealed by an informed source close to what is happening.
He summarized:[You must be registered and logged in to see this link.]In an interview with Sumaria News, what is happening inside the refinery and the problems and technical defects in it exceed 60 defects, but the problem is not limited to the presence of technical defects only, but suspicions of corruption, waste of public money and collusion by[You must be registered and logged in to see this link.]The refinery or the central oil company with[You must be registered and logged in to see this link.]The Korean refinery builder, such as signing the receipt of the refinery before it is completed[You must be registered and logged in to see this link.]Its business, which makes it “sound in terms of late fees” and also not responsible for problems that will arise later, in addition to handing over its full money, contrary to the contract that requires keeping part of the amount as tax deposits.
*Breakage, broken heat exchangers and poor materials*
he says[You must be registered and logged in to see this link.]Alsumaria News reported that the refinery has cracks in the concrete foundations and floors of some production units, and a collapse occurred in the foundations of one of the crude oil tanks, which was treated temporarily. Large cracks had previously occurred in the foundation of one of the exchangers in the electricity generation unit, as well as a large crack in the foundation of one of the black oil tanks during the trial operation, all due to design errors in the thermal expansion calculations of the equipment and pipeline networks. This is a very serious design defect, leading to oil and product leaks and even fires.
Another problem is that the water network for the fire extinguishing system suffers from continuous loss and leaks of large quantities of water underground in many joints of the network, which may cause collapses in roads and buildings in the future. The leak also causes the network to lose its pressure, which makes it start immediately after a fire occurs, which means that the fire extinguishing process will fail due to the leak and loss of pressure.
According to the source, much of the equipment installed in the refinery does not meet basic specifications, such as chemical pumps that suffered complete damage to their internal parts due to being manufactured from materials that do not meet specifications, in addition to fixed equipment such as corroded heat exchangers. Although the Ministry of Oil recommended replacing all 370 exchangers, the ministry’s instructions have not been implemented yet.
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*Pollution and shutdown.. The refinery is operating at only 65% capacity*
and indicates[You must be registered and logged in to see this link.]The refinery stopped several times during the warranty year due to contamination of the refining unit products due to a leak in the heat exchangers, indicating that the refinery is currently operating at only 65% capacity for several months due to a leak in the exchangers and has not been maintained yet, although the refinery is supposed to operate at 100% capacity, but in the first six months of 2024 the production rate of improved and super gasoline was 5 million liters per day, and according to the design it should produce more than 8 million liters per day, which means a financial loss within 6 months amounting to more than 500 billion dinars for the gasoline product only, excluding other products, in addition to a 40% shortage in the production of liquefied gas and a shortage in the production of white oil.
*Release of dues[You must be registered and logged in to see this link.]Korean "on defective equipment"*
and shows that "the fundamental defects are still without a repair plan, and the amount of the final performance insurance withheld amounting to 2.5% is not enough to repair the very many defects, and the repair period for defects requires stopping the refinery for about 4 to 6 months, which will lead to significant financial losses.
He points out that the dues of the Korean contracting companies were released and the initial insurance was released despite the presence of defective work and all the consultant reports before the initial receipt confirm that there are fundamental defects, the number of which has reached 68 defects, and there is no legal basis or government instructions that allow the receipt of new defective equipment within a new project at a cost of 7 billion dollars.
He explains that "there is no legal basis or government instructions that allow the release of initial insurances for a project that has fundamental defects amounting to 68 defects, which appeared in the trial operation, and are proven in the reports of[You must be registered and logged in to see this link.]The consultant recommended not to receive the project until the defective equipment was replaced, but the Central Oil Company and the management[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]I ignored this recommendation and received the defective project and issued a completion certificate for a project full of defects.
*Who signed the receipt and "ignored" the recommendation[You must be registered and logged in to see this link.]The consultant? *
He confirms that starting the refinery operation requires the signing of the mechanical completion certificate by the employer (Middle Refineries Company), which is a certificate that includes clear recognition of the refinery's readiness and safety for safe operation according to the design capacity and according to the contract. The reality is that the refinery is full of defects and does not operate at the design capacity," wondering: "Why was the mechanical completion certificate signed with all these defects? Who signed it?"
He stresses that "the procedure for receiving the refinery by the employer and issuing the completion certificate has stopped the deduction of the late fine from the contractor despite the contractor not completing the project work. Evidence of the incompleteness of the project work is the large number of defects before receipt, as well as the failure to operate the refinery at full capacity indicates the incompleteness of the project, and this is a waste of public money," wondering: "Have the late fines due from the contractor been deducted? It was noted that the project management has released all the contractor's dues and there is no reference to the late fines."
He considered that the current operation process since 12/14/2023 until now is a catastrophic violation of the state's instructions and a violation of For the contract,” explaining that “receiving the refinery ended the contractor’s responsibility for insurance, and the refinery and the staff became without a comprehensive insurance certificate against all risks since the initial receipt was signed on 12/14/2003, as the Korean coalition’s responsibility for insurance ended upon receiving the refinery from the employer, and the employer (Middle Refineries Company) did not do so.[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]) So far, a comprehensive insurance certificate has been issued for the refinery worth $7 billion, similar to all government refineries insured by the Iraqi National Insurance Company,” he asked, “What is the fate of the refinery workers who have become uninsured?”
*The liquidation is not complete.. Gasoline is thrown away with the black oil*
He explained that “in the past months, the problem of exporting the expensive light black oil produced from[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]Not all the gasoline and white oil were extracted from it, and it was sold at the price of the less expensive heavy black oil, as there was a difference in the specifications of the black oil produced from[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]In 2023, during the trial operation, the state lost $14 million, which was recovered by the Integrity Commission and the Oil Marketing Company. This difference was the result of not operating all the refinery units.
He explained that “a report prepared by the Prime Minister’s advisor on[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]It included a recommendation to form a specialized team from the departments of the Ministry of Oil to audit and investigate the problems and defects of the refinery, but the Ministry of Oil did not take any measures regarding the matter.
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*What are the main technical flaws?*
According to the report[You must be registered and logged in to see this link.]French Advisory, there are a number of major defects announced in the equipment[You must be registered and logged in to see this link.]Karbala, included: "Erosion of heat exchangers 372 exchangers, failure of thermal insulation in the furnaces of 8 main units and the appearance of thermal spots on the metal structure of the furnaces, especially the hydrogen production unit furnace, - leaks in the underground water pipe network (special for extinguishing), corrosion of the stainless steel pipe in the raw water treatment unit and the polluted water treatment unit, leakage in the heat exchanger (crude oil / kerosene), a design error in the fuel gas pipe, a defect in the control system equipment, a defect in the main valve in the fourth unit CCR for gasoline production, a defect in the aircraft fuel production system, a defect in the torches of the electricity generation turbine No. 2, cracks in the flanges of the main water pipe type GRV, a defect in the evaporation unit No. 42 and a design defect in the unit compressor cooling system.
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*Paying the full amount to the Korean company and “protecting” it from violations
*[You must be registered and logged in to see this link.]All these defects are fundamental and essential, and yet the refinery is operated and these defects are neglected and the repair process is postponed after the issuance of the initial acceptance certificate. This is a waste and negligence on the part of the refinery management and the project management, as the refinery cannot be initially accepted in the presence of these defects.
He explained that the project management has paid more money than the Korean coalition is entitled to, contrary to the contract. According to the contract, the contractor is entitled to 92% of the contract amount upon initial acceptance and operation of the refinery with a capacity of 140 thousand barrels without defects, provided that all products are produced in accordance with the specifications in terms of quantity and quality, while 8% of the contract amount remains reserved as tax deposits and good performance deposits and is released one year after the initial acceptance, provided that the Korean coalition bears the cost of repairing the design, implementation and manufacturing defects during the first year of operation. However, what happened was that 94.5% of the contract amount was paid before the initial acceptance and in the presence of these fundamental and essential defects announced, as $6.275 billion was paid, out of the total amount of $6.641 billion.
*Recommendations*
He stressed that the refinery management, the project management and the resident engineer management approved and ratified the mechanical completion certificate, i.e. the refinery’s readiness for operation, ten months ago, with these defects officially present, and this is a clear negligence on the part of the heads of departments, branches and units.
He explained that “the Korean coalition is now threatening to stop the refinery in order to repair the defects it caused,” stressing that “the Korean coalition must bear the cost of the delay and must bear all the late fees amounting to 10% of the contract amount, amounting to $641,641 million. The refinery must also be stopped and repaired as soon as possible, and the current government departments of the refinery must be punished and replaced, in addition to reviewing all new contracts and adjusting their prices to half the price or less, and obligating the Koreans to their duties in the original contract (consultant, operation, consumables and spare parts).”
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Alsumaria Special
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2024-10-14 | 05:05
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[You must be registered and logged in to see this link.]News-Special
Only one year has passed since the opening[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]The huge one that was[You must be registered and logged in to see this link.]It is expected to stop the import of gasoline and all petroleum derivatives, at an establishment cost of 7 billion dollars. However, during this period, the refinery was shut down more than once for maintenance purposes, and today it has been shut down for some time, causing a clear kerosene crisis in a number of governorates.
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[size=16]
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But beyond appearances, and going into the depths of the details and backstage, great and dangerous horrors are revealed about the reality of what is happening inside the refinery, according to what was revealed by an informed source close to what is happening.
He summarized:[You must be registered and logged in to see this link.]In an interview with Sumaria News, what is happening inside the refinery and the problems and technical defects in it exceed 60 defects, but the problem is not limited to the presence of technical defects only, but suspicions of corruption, waste of public money and collusion by[You must be registered and logged in to see this link.]The refinery or the central oil company with[You must be registered and logged in to see this link.]The Korean refinery builder, such as signing the receipt of the refinery before it is completed[You must be registered and logged in to see this link.]Its business, which makes it “sound in terms of late fees” and also not responsible for problems that will arise later, in addition to handing over its full money, contrary to the contract that requires keeping part of the amount as tax deposits.
*Breakage, broken heat exchangers and poor materials*
he says[You must be registered and logged in to see this link.]Alsumaria News reported that the refinery has cracks in the concrete foundations and floors of some production units, and a collapse occurred in the foundations of one of the crude oil tanks, which was treated temporarily. Large cracks had previously occurred in the foundation of one of the exchangers in the electricity generation unit, as well as a large crack in the foundation of one of the black oil tanks during the trial operation, all due to design errors in the thermal expansion calculations of the equipment and pipeline networks. This is a very serious design defect, leading to oil and product leaks and even fires.
Another problem is that the water network for the fire extinguishing system suffers from continuous loss and leaks of large quantities of water underground in many joints of the network, which may cause collapses in roads and buildings in the future. The leak also causes the network to lose its pressure, which makes it start immediately after a fire occurs, which means that the fire extinguishing process will fail due to the leak and loss of pressure.
According to the source, much of the equipment installed in the refinery does not meet basic specifications, such as chemical pumps that suffered complete damage to their internal parts due to being manufactured from materials that do not meet specifications, in addition to fixed equipment such as corroded heat exchangers. Although the Ministry of Oil recommended replacing all 370 exchangers, the ministry’s instructions have not been implemented yet.
[You must be registered and logged in to see this image.]
*Pollution and shutdown.. The refinery is operating at only 65% capacity*
and indicates[You must be registered and logged in to see this link.]The refinery stopped several times during the warranty year due to contamination of the refining unit products due to a leak in the heat exchangers, indicating that the refinery is currently operating at only 65% capacity for several months due to a leak in the exchangers and has not been maintained yet, although the refinery is supposed to operate at 100% capacity, but in the first six months of 2024 the production rate of improved and super gasoline was 5 million liters per day, and according to the design it should produce more than 8 million liters per day, which means a financial loss within 6 months amounting to more than 500 billion dinars for the gasoline product only, excluding other products, in addition to a 40% shortage in the production of liquefied gas and a shortage in the production of white oil.
*Release of dues[You must be registered and logged in to see this link.]Korean "on defective equipment"*
and shows that "the fundamental defects are still without a repair plan, and the amount of the final performance insurance withheld amounting to 2.5% is not enough to repair the very many defects, and the repair period for defects requires stopping the refinery for about 4 to 6 months, which will lead to significant financial losses.
He points out that the dues of the Korean contracting companies were released and the initial insurance was released despite the presence of defective work and all the consultant reports before the initial receipt confirm that there are fundamental defects, the number of which has reached 68 defects, and there is no legal basis or government instructions that allow the receipt of new defective equipment within a new project at a cost of 7 billion dollars.
He explains that "there is no legal basis or government instructions that allow the release of initial insurances for a project that has fundamental defects amounting to 68 defects, which appeared in the trial operation, and are proven in the reports of[You must be registered and logged in to see this link.]The consultant recommended not to receive the project until the defective equipment was replaced, but the Central Oil Company and the management[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]I ignored this recommendation and received the defective project and issued a completion certificate for a project full of defects.
*Who signed the receipt and "ignored" the recommendation[You must be registered and logged in to see this link.]The consultant? *
He confirms that starting the refinery operation requires the signing of the mechanical completion certificate by the employer (Middle Refineries Company), which is a certificate that includes clear recognition of the refinery's readiness and safety for safe operation according to the design capacity and according to the contract. The reality is that the refinery is full of defects and does not operate at the design capacity," wondering: "Why was the mechanical completion certificate signed with all these defects? Who signed it?"
He stresses that "the procedure for receiving the refinery by the employer and issuing the completion certificate has stopped the deduction of the late fine from the contractor despite the contractor not completing the project work. Evidence of the incompleteness of the project work is the large number of defects before receipt, as well as the failure to operate the refinery at full capacity indicates the incompleteness of the project, and this is a waste of public money," wondering: "Have the late fines due from the contractor been deducted? It was noted that the project management has released all the contractor's dues and there is no reference to the late fines."
He considered that the current operation process since 12/14/2023 until now is a catastrophic violation of the state's instructions and a violation of For the contract,” explaining that “receiving the refinery ended the contractor’s responsibility for insurance, and the refinery and the staff became without a comprehensive insurance certificate against all risks since the initial receipt was signed on 12/14/2003, as the Korean coalition’s responsibility for insurance ended upon receiving the refinery from the employer, and the employer (Middle Refineries Company) did not do so.[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]) So far, a comprehensive insurance certificate has been issued for the refinery worth $7 billion, similar to all government refineries insured by the Iraqi National Insurance Company,” he asked, “What is the fate of the refinery workers who have become uninsured?”
*The liquidation is not complete.. Gasoline is thrown away with the black oil*
He explained that “in the past months, the problem of exporting the expensive light black oil produced from[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]Not all the gasoline and white oil were extracted from it, and it was sold at the price of the less expensive heavy black oil, as there was a difference in the specifications of the black oil produced from[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]In 2023, during the trial operation, the state lost $14 million, which was recovered by the Integrity Commission and the Oil Marketing Company. This difference was the result of not operating all the refinery units.
He explained that “a report prepared by the Prime Minister’s advisor on[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]It included a recommendation to form a specialized team from the departments of the Ministry of Oil to audit and investigate the problems and defects of the refinery, but the Ministry of Oil did not take any measures regarding the matter.
[You must be registered and logged in to see this image.]
*What are the main technical flaws?*
According to the report[You must be registered and logged in to see this link.]French Advisory, there are a number of major defects announced in the equipment[You must be registered and logged in to see this link.]Karbala, included: "Erosion of heat exchangers 372 exchangers, failure of thermal insulation in the furnaces of 8 main units and the appearance of thermal spots on the metal structure of the furnaces, especially the hydrogen production unit furnace, - leaks in the underground water pipe network (special for extinguishing), corrosion of the stainless steel pipe in the raw water treatment unit and the polluted water treatment unit, leakage in the heat exchanger (crude oil / kerosene), a design error in the fuel gas pipe, a defect in the control system equipment, a defect in the main valve in the fourth unit CCR for gasoline production, a defect in the aircraft fuel production system, a defect in the torches of the electricity generation turbine No. 2, cracks in the flanges of the main water pipe type GRV, a defect in the evaporation unit No. 42 and a design defect in the unit compressor cooling system.
[You must be registered and logged in to see this image.]
*Paying the full amount to the Korean company and “protecting” it from violations
*[You must be registered and logged in to see this link.]All these defects are fundamental and essential, and yet the refinery is operated and these defects are neglected and the repair process is postponed after the issuance of the initial acceptance certificate. This is a waste and negligence on the part of the refinery management and the project management, as the refinery cannot be initially accepted in the presence of these defects.
He explained that the project management has paid more money than the Korean coalition is entitled to, contrary to the contract. According to the contract, the contractor is entitled to 92% of the contract amount upon initial acceptance and operation of the refinery with a capacity of 140 thousand barrels without defects, provided that all products are produced in accordance with the specifications in terms of quantity and quality, while 8% of the contract amount remains reserved as tax deposits and good performance deposits and is released one year after the initial acceptance, provided that the Korean coalition bears the cost of repairing the design, implementation and manufacturing defects during the first year of operation. However, what happened was that 94.5% of the contract amount was paid before the initial acceptance and in the presence of these fundamental and essential defects announced, as $6.275 billion was paid, out of the total amount of $6.641 billion.
*Recommendations*
He stressed that the refinery management, the project management and the resident engineer management approved and ratified the mechanical completion certificate, i.e. the refinery’s readiness for operation, ten months ago, with these defects officially present, and this is a clear negligence on the part of the heads of departments, branches and units.
He explained that “the Korean coalition is now threatening to stop the refinery in order to repair the defects it caused,” stressing that “the Korean coalition must bear the cost of the delay and must bear all the late fees amounting to 10% of the contract amount, amounting to $641,641 million. The refinery must also be stopped and repaired as soon as possible, and the current government departments of the refinery must be punished and replaced, in addition to reviewing all new contracts and adjusting their prices to half the price or less, and obligating the Koreans to their duties in the original contract (consultant, operation, consumables and spare parts).”
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