BAGHDAD -- Mr. Abdulkareem Liaybi, minister of oil, said
that the Karbala refinery project is considered as one of the
biggest projects in the oil refining industry in Iraq.
The ministers statement came after the approval of the
council of ministers during its session on the 7th of January
2014 to award the project to the consortium of four
companies led by Hyundai Korean Company.
The refinery will produce oil derivatives with international
standards equivalent to the European standard, and a production
power of 140,000 bpd.
The project will be applied by a
consortium of four Korean companies led by Hyundai Company
within 56 months at a cost of $6 billion, which will be covered
from an investment budget of four years.
For the significance of the refinery project, the ministry hired
the French company Technip, which is specialized in the oil
projects to help the Iraqi staff in the project application.
The production of the refinery will fill a part of the
Iraqi provinces' needs, especially the middle class, and
Baghdad -- in addition to the employment of local manpower and
Mr. Assim Jihad, spokesman for the ministry of oil, said
that the refinery project is considered as one of the
significant projects in the history of refining for its cost and the
quality of derivatives like the liquefied gas, normal and
qualified gasoline, gas oil, fuel oil, jet fuel, kerosene,
industrial asphalt and road asphalt.
And it will fill a part of the local need for oil and feed
the Khayrat power station that supply Karbala province with
electricity, he added.
The refinery will take an area of 6 sq km on the southern
part of Karbala province near a strategic pipeline, according
to the designs of Technip, and it will contain units that
operate with new environmentally-friendly technology, according to the
environmental report in the contract.
The ministry of oil held previously an investment promotion
to build four new refineries in many provinces in Iraq like the
300,000 bpd Nasirya refinery, and the Karbala and Karkuk
refineries, which have 150,000 bpd each.