Kirkuk’s New Oil Refinery Project: $2 Billion Investment
Officials from Kirkuk have unveiled significant details regarding the upcoming oil refinery project in the governorate. The contract for this initiative, valued at $2 billion, is set to be equipped by the American firm UOP.
Project Overview
Governor Ribwar Taha Mustafa emphasized that the signing of the contract to construct the Kirkkalat oil refinery represents a critical advancement in fulfilling the region’s demand for gasoline and fuel.
Hammadi, an official involved with the project, noted, "The project has an estimated value of $2 billion, with a completion timeline of two to three years. It is expected to create approximately 3,000 job opportunities for residents of Kirkuk." He also indicated that the forthcoming period will see the project’s initiation, contingent upon the successful transfer of land to the executing company.
Strategic Importance
This endeavor aligns with the Iraqi Ministry of Oil’s strategies to satisfy domestic requirements for oil derivatives and facilitate the export of excess production through investment in refinery projects. The planned refinery is anticipated to produce 70,000 barrels per day of high-quality oil derivatives.
Commitment to Quality
Jalal Haj Ahmed, Director of Rania Energy and Oil Company, stated, "Securing the contract with Kirkuk’s administration marks a pivotal moment. The refinery will be developed in accordance with international standards, and we are dedicated to meeting operational deadlines. The facility will be outfitted with environmentally friendly technology provided by UOP, ensuring we utilize cutting-edge, first-of-its-kind equipment."
He further affirmed that, upon completion, the project would generate about 3,000 job opportunities across Kirkuk.
Government Support
On Thursday, Governor Ribwar Taha Mustafa announced that he had received approval from Prime Minister Mohammed Shia Sudani and the Federal Ministry of Oil for the establishment of the governorate’s first oil refinery. "Kirkuk has finalized its first investment contract for a refinery with a capacity of 70,000 barrels per day, having secured necessary endorsements from the Prime Minister and the Ministry of Oil," Mustafa stated.
He added that the refinery’s location will be situated near the North Gas Company, southwest of Kirkuk. The executing firm for this project is Rania International Oil Company.
Economic Impact
Oil expert Ali Khalil remarked on the significance of this refinery project, stating, "The establishment of the oil refinery in Kirkuk will enhance the availability of refined oil products in the province. Given that Kirkuk is recognized as a key oil-producing region, this venture stands out as a first for the area."
He noted that the current capacity of the aging Kirkuk refinery stands at 60,000 barrels, which lacks certain advanced features. Khalil highlighted that the introduction of a new refinery promises improvements in production capacity and product quality.
Historical Context
Khalil also pointed out Kirkuk’s reliance on the Baiji refineries and other facilities for oil products, emphasizing that the new refinery project would significantly bolster local supplies and facilitate distribution to neighboring governorates.
The Ministry of Oil first proposed the Kirkuk refinery project over a decade ago, with follow-up announcements regarding its progress made as recently as 2017. The Ministry has expressed ambitions to elevate oil production from Kirkuk fields beyond 1 million barrels per day, with plans to engage foreign companies to enhance the region’s oil production capabilities.