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Kirkuk Secures First Investment Contract for Major Oil Refinery, Promising Job Growth and Local Production Boost

2025-01-30T08:21:02+00:00

The Governor of Kirkuk, Ribwar Taha Mustafa, has confirmed the approval from Prime Minister Mohamed Shi’a Al-Sudani and the Federal Ministry of Oil to establish the province’s first oil refinery.

During a press conference, Mustafa announced that Kirkuk has signed its first investment contract to develop an oil refinery with a daily capacity of 70,000 barrels, receiving the necessary approvals from both the Prime Minister and the Ministry of Oil.

The site for the refinery will be located near the northern gas company, southwest of Kirkuk.

Mustafa emphasized that this project will generate job opportunities for local youth, noting that Rania International Oil Company will be responsible for its execution.

Oil expert Ali Khalil remarked that the establishment of this refinery is pivotal in supplying the province with essential oil products, especially considering that Kirkuk is a significant oil-producing region. This project represents a landmark development in the area’s oil industry.

Khalil further explained that the refinery’s design capacity includes 60,000 barrels of white oil, gas, and black oil. While the current design does not incorporate liquefaction and hydrogenation towers, the inclusion of hydrogenation technology could enhance production capabilities and improve product quality.

Currently, Kirkuk relies heavily on the Baiji refineries and other designs. The implementation of a new refinery project is expected to bolster product availability in the governorate and provide support to neighboring regions with necessary oil derivatives.

Notably, the Iraqi Ministry of Oil had announced plans for the Kirkuk refinery project over a decade ago, reiterating these plans in 2017.

On October 17, 2017, the Ministry detailed its intentions to construct a new oil refinery in Kirkuk, enhancing overall oil production from existing fields.

The Ministry aims to increase production from the Kirkuk fields to over one million barrels per day and is exploring the possibility of engaging foreign companies to boost production capabilities.

The federal government has also pledged to implement legal actions against the Kurdistan region should it obstruct the export of oil from Kirkuk.

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