Canadian Firm Wins Nassiriya Refinery Contract

Iraq’s Oil Ministry has approved a preliminary agreement with Vancouver-based Pacific Future Energy to build a refinery in Nassiriya.

Pacific is likely to work on the project in tandem with SNC-Lavalin, a Montreal-based engineering and construction firm that has a partnership with Pacific dating back to 2015, and longstanding ties in Iraq.

More details here from Iraq Oil Report (subscription required)

(Source: Iraq Oil Report)

Production Restarted at Baiji Refinery

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] announced on Sunday the full rehabilitation of the Salahaddin-2 unit at Baiji oil refinery.

The refinery was shut down in 2014 due to the actions of the Islamic State group (IS, ISIS, ISIL, Daesh).

The Salahaddin-2 unit has a capacity of 70,000 barrels per day (bpd).

(Source: Ministry of Oil)

KRG Acts against Illegal Refineries

KRG Prime Minister Nechirvan Barzani chaired on Wednesday a meeting of the KRG Oil and Gas Council.

It was also attended by Deputy Prime Minister Qubad Talabani, relevant ministers, governors, supervisors of local administrations, and representatives of the Integrity Commission, Board of Supreme Audit, the Attorney General’s Office, and Security (Assayish).

The Ministry of Natural Resources presented a report on the number and locations of illegal refineries with dates of operation. Because these refineries are a serious threat to citizen health and the environment it was agreed to accelerate control of the situation.

Prominent examples in both Erbil and Suleimaniya Governorates were presented in which refinery residues severely damaged water resources, agricultural production, and adversely affected citizen health.

It was decided the Ministry of Natural Resources in cooperation with the Ministry of Interior and the heads of administrative units would soon work in accordance with law to resolve this issue. The government would take necessary procedures to protect the environment and health of citizens, and later present results of legal proceedings to the public.

Prime Minister Barzani and Deputy Prime Minister Talabani stressed the need for especially the executive administrative units such as the Ministry of Interior, the Security Council, and the police to cooperate with governors to address this issue within the framework of the legal mechanism that was put forward during the meeting.  Also, the Attorney General has been mandated to cooperate on legalities.

They stressed that protection of the environment and preservation of citizens’ lives are priorities that supersede economic issues – a distinction must be made between the lives of citizens, the environment, and the provision of fuel.

(Source: KRG)

Deadlines Extended for 2 More Oil Refineries

By John Lee.

The Ministry of Oil has extended the closing dates for tenders for two new oil refineries:

Companies interested in investing must submit their documents by the end of working hours on Sunday, 30th October 2018.

For further information please contact studies@oil.gov.iq or studies.oil@gmail.com.

(Source: Iraqi Ministry of Oil)

Deadline Extended for Kut Oil Refinery

By John Lee.

The Ministry of Oil has extended the closing date for tenders for the new 100,000-bpd refinery in Kut.

Companies interested in investing must submit their documents by the end of working hours on Tuesday, 4th October 2018.

More information here.

For further information please contact studies@oil.gov.iq or studies.oil@gmail.com.

(Source: Iraqi Ministry of Oil)

Kirkuk-Baiji-Baghdad Pipeline Opens

By John Lee.

Iraqi Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] (pictured) has announced that the Kirkuk-Baiji-Baghdad pipeline is now operational.

According to a statement from the Ministry, the 16-inch crude oil pipeline was completed in record time.

Running for 180 kilometers, the pipeline will supply the refineries of Baiji and Daura, and the Quds power station in the north of Baghdad, at a rate of 40,000 barrels per day (bpd).

(Source: Ministry of Oil)

Al-Kask Refinery re-starts Production

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] (pictured) has announced that the re-construction and rehabilitation of the first unit of the Al-Kask refinery in Ninawa is complete.

The facility can process 10,000 barrels of oil per day (bpd).

Work is continuing to finish the second unit, which also has a capacity of 10,000 bpd.

(Source: Ministry of Oil)

Chinese Companies to build Fao Refinery

By John Lee.

Iraq has reportedly signed a contract with two Chinese companies to build the Fao [Faw] oil refinery.

An Iraqi oil official told Reuters the 300,000-bpd facility will include a petrochemical plant.

It is to be built by the Power Construction Corporation of China (PowerChina) and Norinco.

(Source: Reuters)

Iraq Extends Deadline for Qayara Refinery Bids

By John Lee.

Iraq has extended the deadline to bid for the construction and operation of a new 100,000-bpd Qayara refinery.

The full statement from the Ministry of Oil is as follows:

The ministry of oil would like to announce for the investment refinery in Ninawa governorate/ Qayara with a capacity of 100 thousand barrels / day.

The execution is according to the methods of BOOT or BOO and according to the investment law of the refineries No.64 for the year 2007 and its amendments.

The products of the refinery must be environment friendly according to the international standards.

The tax breaks must be according to the investment law No.13 for the year 2006.

In accordance with the second amendment of the investment law No.64 for the year 2007. The subtraction on the crude oil price over the ship is (8%) “The subtraction must be more than 5$ and less than 10$ of the global price”.

The studies, planning and follow-up directorate in the ministry of oil have prepared the data portfolio of the refinery and the price of the data portfolio shall be (30) thousand dollars, or its equivalent in Iraqi Dinars “nonrefundable”.

–  The closing date of selling data portfolios is at the end of the work hours of Tuesday the 15th of May 2018.

–  The receipt of the documents from the companies whom would like to invest in the above mentioned refinery must be to the end of the work hours of Thursday the 14th of June 2018.

The presentation of the documents will be to the Studies Planning & Follow-up Directorate directly in a closed envelop. Otherwise the documents will be rejected.

For further information please contact the E-mails (studies@oil.gov.iq) or (studies.oil@gmail.com).

(Source: Ministry of Oil)

Southern Refineries to Increase Capacity by 33%

By John Lee.

Iraq plans to increase capacity at its southern refineries to 280,000 barrels per day by the end of 2018.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] made the announcement at the opening of the second phase of the fourth unit project in the south refineries in Basrah governorate.

The new project will have a capacity of 70,000 bpd, and will increase production from its current level of 210,000 bpd.

It is being implemented by the Czech company Techno Export, and includes the construction of two units for liquid gas production and water treatment.

(Source: Ministry of Oil)