Iraq signs $2 billion deal for Kirkuk oil refinery

Last Update: 2025-01-31 12:20:23 - Source: Shafaq News
Iraq signs $2 billion deal for Kirkuk oil refinery

Shafaq News/ Iraqi officials signed a $2 billion deal to build an oilrefinery in Kirkuk, officials said on Friday.

Ali Hamadi, investment advisor to the Kirkuk governor, said the refinerywould help address fuel shortages in the province. “The project is valued at $2billion and will take between two and three years to complete,” he told ShafaqNews, adding that construction would begin after the project site is handedover.

The refinery, designed to process 70,000 barrels per day (bpd) ofrefined oil products, will be built by Rania International Oil Company, withequipment supplied by US firm UOP.

Jalal Haji Ahmed, head of Rania Energy and Oil, said the facility wouldbe built to international standards. “The refinery will use advanced,environmentally friendly technology.”

According to officials, the project is part of the Iraqi Oil Ministry’splan to increase refining capacity, cut reliance on imports, and potentiallyexport surplus products.

Kirkuk Governor Rebwar Taha Mustafa said the refinery had receivedapprovals from Prime Minister Mohammed Shia Al-Sudani and the Ministry of Oil.“This is Kirkuk’s first investment contract for a refinery. It will providejobs and improve the local fuel supply,” he said on Thursday.

In turn, oil expert Ali Khalil said Kirkuk, a major oil-producingprovince, has long needed additional refining capacity. The existing Kirkukrefinery can process 60,000 bpd but lacks modern hydrocracking and distillationunits. “A new refinery will improve fuel quality and reduce dependence onrefineries in Baiji and elsewhere,” Khalil said.

Iraq, which holds the world’s fifth-largest oil reserves, announcedplans in 2017 to build a new Kirkuk refinery and increase oil production in theregion to over one million bpd. The government has sought investment fromforeign firms to expand output.