Offering 7 investment opportunities in the oil refining sector in Iraq

Offering 7 investment opportunities in the oil refining sector in Iraq

Today, Wednesday, March 15 (2023), Baghdad announced the launch of 7 investment opportunities in the oil refining sector in Iraq.

The announcement of investment opportunities comes within the framework of the government’s plans to increase refining capacity, for the benefit of the country, and to secure its needs of oil derivatives, which cost the country’s budget about $5 billion annually.

Iraqi Oil Minister Hayan Abdul-Ghani affirmed the ministry’s keenness to increase national production from refining capacities, cover the local need for oil products, and then shift to exporting the surplus to foreign markets.

He pointed out that the new oil refining projects in Iraq aim to transform the country from an importer to an exporter of petroleum products during the coming years.

Part of the conference announcing the investment of oil refineries in Iraq – photo courtesy of the Ministry of Oil

New investment opportunities

Oil Minister Hayyan said – during the event of announcing investment opportunities for oil refining sector projects in Iraq, which was organized by the ministry in cooperation with the National Investment Commission – that the announcement of investment opportunities comes in line with the government program and the ministry’s plans aimed at increasing national production from refining capacities and covering the local need for products. petroleum.

Abdul Ghani indicated that the announcement of investment opportunities represents a shift in the government and ministry’s strategy towards encouraging foreign investments in the oil refining sector in Iraq, and opening new horizons for international companies and local private sector companies specialized in this field.

He added that the Ministry of Oil, in cooperation with the National Investment Commission, has prepared a promising program to announce a set of investment opportunities in the oil refining sector in Iraq, which includes 7 investment opportunities.

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He pointed out that among the 3 opportunities, the door for submission will open starting today, March 15, 2023, and likewise 3 others will be applied for on April 2, while another investment opportunity will be announced at a later time.

Oil refining in Iraq
Iraqi Oil Minister Hayan Abdul Ghani

New project details

Minister Hayyan explained that the investment opportunities that will be opened today in cooperation with the National Commission for Investment in the oil refining sector in Iraq include the following:

  • Maysan Refinery Investment Project in Maysan Governorate, with a capacity of 150,000 barrels per day.
  • Qayyarah Refinery investment project in Nineveh Governorate, with a capacity of 70,000 barrels per day.
  • Crude oil hydrogenation project in Basra Governorate, with a capacity of 30,000 barrels per day.

He referred to the other 3 investment opportunities for which applications will be opened in early April, including:

  1. The Nasiriyah Refinery investment project in Dhi Qar Governorate, with a capacity of 150 thousand barrels per day.
  2. Al-Kut Refinery Investment Project in Wasit Governorate, with a capacity of 100,000 barrels per day.
  3. The Samawah Refinery investment project in Al-Muthanna Governorate, with a capacity of 70 thousand barrels per day.
Oil refining in Iraq
Part of the conference announcing the investment of oil refineries in Iraq – photo courtesy of the Ministry of Oil

Advancement of the refining sector

For his part, the head of the National Commission for Investment, Haider Muhammad Makiya, expressed his hope that investment opportunities in the oil refining sector in Iraq would achieve their goals.

Makiya added that investing in the refining industries sector contributes to supporting the national economy and sustainable development, and that it is an important step by the government and the ministry to advance these vital sectors.

For his part, the Undersecretary of the Ministry for Liquidation Affairs, Hamed Younes, said that announcing investment opportunities contributes to increasing oil refining capacity in Iraq, improving the specifications of oil products, and achieving the ministry’s goals and plans in covering the local need and shifting towards export.

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Yunus noted the importance of declaring opportunities in advancing the reality of the oil industry, and its great effects on the economic and developmental reality.

Improve fuel quality

The spokesman for the Ministry of Oil, Assem Jihad, said that the nomination of these investment opportunities came based on a realistic study by the concerned authorities in the ministry, due to the actual and urgent need of the concerned governorates, and also to achieve the ministry’s goals in increasing national production of oil refining capacities in Iraq and improving their quality according to international standards. approved.

He added that this package of important projects in the refining industries sector represents a promising step to achieve the goals of sustainable development, by advancing the economic reality of the governorates, working to increase their financial revenues, and providing job opportunities for their people and other service sectors.

Jihad referred to the ministry’s call for international and local investment companies who find themselves capable and competent, and to hasten to submit their papers to the ministry, in accordance with the conditions and instructions of the round of investment opportunities in the refining and refining industries sector.

Iraq (the second largest oil producer in OPEC) suffers from a shortage of refined petroleum products, which cost the country about $5 billion annually, including about $3.5 billion for importing gasoline and “red diesel” gas oil, so it plans to expand oil refinery projects.

The Ministry of Oil recently announced the addition of a new production unit to the Diwaniyah refinery with a capacity of 70,000 barrels per day, in addition to the imminent start of actual production at the Karbala oil refinery with a capacity of 140,000 barrels per day.

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