Iraq's Baiji oil refinery was captured by the Islamic State

Iraq plans Wasit refinery project

BAGHDAD, September 21, 2016 – Iraq’s Ministry of Oil has signed off on plans to build a refinery in Wasit province, a local official was quoted as saying on Tuesday.

According to Amal Al Akili, head of the governorate council’s energy committee, the refinery will source feedstock from the nearby Ahdab and Badra fields, operated by China National Petroleum Corporation and Gazprom Neft, respectively. The plant will have a design capacity of 150,000 bpd, Akili said.

Iraq’s downstream sector has faced a number of setbacks over the years, ranging from the months-long siege of the Baiji refinery, the country’s largest, to the drop in oil prices. The resulting loss in revenue meant the government was forced to shelve a refinery project in Nasiriyah and put a greenfield project in Kirkuk on hold.

Endeavours that did get off the ground were the USD 6.04-billion Karbala refinery and the Basra refinery rehabilitation project. In March 2016, the groundbreaking ceremony was held for the long-delayed 150,000-bpd Missan refinery.

The planned Wasit refinery has reportedly attracted the attention of several international companies. Local media on Monday reported that Shell was among the companies to have submitted a proposal. The Anglo-Dutch company operates the Majnoon field and is involved in the Basrah Gas Company, a midstream joint venture with Iraq’s South Gas Company and Mitsubishi Corporation. Shell is also working to set up the Nebras Integrated Petrochemicals project in southern Iraq.

Read our latest insights on: