Oil Refinery New Oil Refinery in Iraq
The Iraq aims to boost its oil production by both the construction of new refineries and the modernisation of existing facilities. The country aims to reach a production capacity of 12 million barrels per day by 2020.
Los Angeles, California/USA – Karbala Refinery Company (KRC) will construct a new 2000,000 barrels per day refinery in Karabala/Iraq. The Iraqi ministry of oil recently announced the signing of an appropriate contract with KRC. "Karbala Refinery will be located 100 km south of Baghdad on a 6 sq km plot of land, and will be the most advanced state-of-the-art refinery with almost [a] full conversion rate and with an estimated cost of $6.5 billion," said KRC Chief Executive Officer Dean Michael.
Catherine Hunter, analysts of IHS Global Insight, sees the project as an attempt to meet Iraq’s domestic demand for gasoline and diesel. Its one of several recent refining projects aimed “towards both the transportation sector and, unfortunately, electricity, with gas shortfalls buoying demand for oil products in this sphere.” The Karbala project is part of Iraq's longer-term plan to construct four new refineries in an effort to add 750,000 b/d of refining capacity. The other three new refineries are to be at Nassiriya, Maysan and Kirkuk.
The US Trade & Development Agency announced plans to support a study on the rehabilitation of the Basra refinery with a US $ 502,798 grant. The study is expected to assess the current condition of the refinery and outline a rough frame for the necessary engineering, equipment supply, and construction efforts required to modernize its operation. Officials expect the rehabilitation to “allow the country to realize greater economic benefit from its oil reserves, while supporting the Iraq Ministry of Oil's goal to reach a capacity of 12 million barrels per day production by 2020.”