Iraq’s Oil Ministry has signed an implementation agreement for the construction of a new refinery at Karbala on a build-own-operate basis, it has been announced here. The agreement was signed with Refinery of Karbala Corporation Ltd (RKC).
The new refinery will have a daily capacity of 200,000 barrels of crude oil and will produce high quality, high octane gasoline (regular and premium), as well diesel fuel for the domestic market.
“The Karbala refinery will be located 100 km south of Baghdad on a 6-square kilometre plot of land and will be the most advanced state-of-the-art refinery, with almost full conversion rate and with an estimated cost of $6.5 billion,” said Mr Dean Michael, CEO of Karbala Refinery Corporation.
Italian company Saipem will provide the processing technology and attend to the technical aspects of the project.
The Karbala Refinery is likely to be the most technically advanced refinery in Iraq, with the use of technologies that ensure almost full conversion of crude into final products, in line with new Iraqi laws on refining and the environment.
RKC has committed to commence production in 48 months from the final signing of the contract. With the commencement of production from the refinery of Karbala, better quality gasoline and diesel products can be supplied in the domestic market, the statement said.