Iraq signs deal to build Karbala Refinery
Baghdad, July 24, 2011
Iraq’s Ministry of Oil has signed an implementation agreement for the construction under BOO terms of a new refinery at Karbala with RKC (Refinery of Karbala Corporation).
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.
“Karbala Refinery will be located 100 km south of Baghdad on a 6 sq km 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 Dean Michael, CEO of Refinery of Karbala Corporation.
The Italian company Saipem will be providing the processing and the technical aspects of the project.
Such a refinery is due to become the most technically advanced refinery in Iraq with the use of the latest available technologies that will ensure almost full conversion of crude to final products in line with new Iraqi laws in refining and the environment, a statement said.
RKC has committed to commence production in 48 months from the final contract date.
With production from the new refinery, the Ministry of Oil will be able to largely supply the domestic market with better quality gasoline and diesel products, the statement added. – TradeArabia News Service