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- Dubai 05:21 06:34 12:33 15:53 18:26 19:40
Iraq’s Kar Group has been awarded a contract to build a 90,000-bpd refinery in Iraqi’s northern Nineveh province, the Arab country’s press has reported.
After haggling for several months, Nineveh’s governing council approved this week approved the project, which also includes a power plant, Mashreq daily said.
It quoted the province’s governor Atheel All Nujaifi as saying the refinery would eventually have an output capacity of 90,000 bpd and would be based in Al Khazar area in Hamdaniya town, northeast of the northern city of Mosul.
“Kar Group has been selected to build the refinery…it will soon sign an agreement to start the project,” he told the Arabic language daily.
He said that when fully commissioned, the refinery would fetch the governorate around $1.15 million a day, adding that it would be used to fund development projects.
Another province official said the project would also include a power generation complex and that the project would be completed within 18 months.
“The refinery will have an initial capacity of 60,000 bpd, which will be raised to 90,000 bpd in the second phase,” Nineveh oil committee chairman Hashim Brifkani said, quoted by the Iraqi Arabic language daily Al Mada.
“As for the power project, it will have a capacity of 300 MW, which will help bridge the gap between supply and demand…”
The officials did not make clear whether the Baghdad-based Kar Group, a joint stock Iraqi-Kurdish oil company, would build both the refinery and the power station.
Iraq, a major Opec producer, has been locked in a multi-billion dollar programme to develop its upstream and downstream oil sector, with plans to build four new refineries to nearly double production to around 1.5 million bpd.
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