Iraqi Prime Minister Noori Al-Maliki and his government have an
agreement with a South Korean consortium to build a new refinery in Karbala. Costs are
expected to be in the $6 billion range, resulting in a facility
that produces 140,000 bpd. Hyundai Engineering and Construction will be the project leader.
"We are late in the building of this refinery, which was not our desire,
but it is a consequence of the circumstances that faced the
country, like the inheritance of the previous Baath regime
policies of sabotage," Mr. Al-Maliki said at a groundbreaking
Today we are putting the corner stone to build the
refinery which is considered as the newest and most developed
in Iraq and has a production power that can meet the needs of
the governorate and the other Middle Euphrates areas,
said Iraqi Deputy Prime Minister for Energy Hussain
The facility is expected to produce a refined products slate of
gasoline, liquefied petroleum gas, gasoil, jet fuel, kerosene,
fuel gas, hard sulfur and paving asphalt.
The Karbala refinery is a centerpiece of
the Al-Maliki governments stated goal to convert Iraq
from a country that imports most of its oil products to a
country that supplies its domestic market and still has
quantities allowing it to become a net exporter.