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Posts tagged: Refinery

ISIL “Controls Baiji Refinery”

By , June 24, 2014 7:07 pm

ISIL “Controls Baiji Refinery”

By John Lee.

Sunni rebels led by the Islamic State of Iraq and the Levant (ISIS, ISIL) have taken control of Baiji [Bayji] refinery, near the town of Tikrit, according to Al Jazeera sources.

While foreign minister Hoshyar Zebari told Al Jazeera on Tuesday that Iraqi special forces soldiers were in control, the news agency’s sources said that ISIL rebels had offered 460 Iraqi troops still near the refinery safe passage to Erbil if they gave up their weapons. The ISIL would then hand the facility to local Sunni leaders, the sources said.

The loss of the refinery, the country’ third largest, would result in a significant loss of revenue for the government.

(Source: Al Jazeera)

Iraq Business News

Jordan, Iraq to Build Refinery

By , May 24, 2014 4:21 pm

Posted on 24 May 2014.

Jordan, Iraq to Build Refinery

By John Lee.

Jordan and Iraq are in ‘serious discussions’ to build a refinery in the Red Sea city of Aqaba, reports Xinhua.

Adnan Al Janabi, chairman of Iraq’s energy parliamentary committee, said the refinery will be used to process oil from Basra.

The refinery will help facilitate the export of the oil and bring great benefits to the two countries,” he said.

(Source: Xinhua)

Iraq Business News

Planned Refinery moves Ninawa even Further from Baghdad

By , May 13, 2014 12:25 pm

Planned Refinery moves Ninawa even Further from Baghdad

This article was originally published by Niqash. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Ninawa’s Planned Oil Refinery Moves Sunni-Led Region even Further from Baghdad

The northern Sunni-led region of Ninawa has been planning its own oil refinery for some time now. And last month the foundations were laid. Some say the refinery means that Ninawa is flouting the wishes of the government in Baghdad, planning independence and most controversially, joining forces with Iraqi Kurdistan.

On April 16, 2014, authorities in the northern Iraqi province of Ninawa laid the foundation stones for the first oil refinery in the area. The move comes after a succession of crises between the Shiite Muslim-led federal government in Baghdad and Sunni Muslim-led provincial authorities in Ninawa.

Of course, as conflicts between Ninawa’s neighbouring region of Iraqi Kurdistan and Baghdad have proven, undertaking big oil projects without Baghdad’s express permission can be risky. The Iraqi Kurdish have been moving toward oil production independence for some time now and the most recent projects have seen what some have described as a damaging ”financial blockade” of the semi-autonomous region by Baghdad.

“It is not true that the contract Ninawa has signed with the KAR Group to build a refinery in the Hamadaniyah area, in the east of Mosul, is illegal,” Ninawa’s governor, Atheel al-Nujaifi (pictured), told NIQASH. “The council was included at every step. The company, KAR, won the contract after it was put out to tender – the company beat out some other companies, including a Turkish one,” he noted.

Additionally Ninawa would be cooperating with Iraqi Kurdistan to get the oil refined. “This cooperation reflects the hope for a common future based on Arab-Kurdish cooperation,” al-Nujaifi continued. “We aim to build a stable region, where resources are developed, rather than used to kill our sons.”

Iraq Business News

Iraq May Build Refinery in Sudan

By , March 5, 2014 3:16 pm

Iraq May Build Refinery in Sudan

By John Lee.

The Minister for Oil Abdul Kareem Luaibi [Elaibi] has received the Sudanese Minister of Oil, Mr. Makkawi M. Awadh, and his delegation in his office in Baghdad.

Following the meeting, Mr. Luaibi said:

We discussed [how] to supply Sudan with crude oil, as well as the possibility to participate in building a refinery in [Sudan].

Mr. Awadh and his delegation said they were keen to develop cooperation between the countries, especially in the energy sector.

(Source: Ministry of Oil)

Iraq Business News

KAR Win Ninewa Refinery Contract

By , February 25, 2014 2:03 am

KAR Win Ninewa Refinery Contract

By John Lee.

Baghdad based Iraqi-Kurdish company KAR has won the contract to build Ninewa’s planned 90,000 bpd oil refinery.

To date, the KAR Group have been working on the Erbil refinery in partnership with the Texas based Ventech Company, in addition to a number of oil, gas and construction projects in Iraq.

When complete the new refinery will also have an associated 300 MW power plant and will generate approximately $ 1.15 million a day in revenues for the province, according to Ninewa’s Governor Atheel al-Nujaifi (pictured.) 

The move is another sign of Ninewa province’s growing assertiveness over oil and gas issues and Governor Nujaifi’s desire to move ahead with projects despite Baghdad’s reservations. The refinery will be constructed in two phases, according to Ninewa Oil Committee chairman Hashim Brifkani. Quoted in Iraqi paper Al Mada, Brifkani noted,

“The refinery will have an initial capacity of 60,000 bpd, which will be raised to 90,000 bpd in the second phase.” 

It is unclear at present whether KAR Group will also construct the power station.

(Source: Emirates 24/7) 

Iraq Business News

Maliki Heralds Construction of Karbala Refinery

By , February 24, 2014 2:39 pm

Maliki Heralds Construction of Karbala Refinery

By John Lee.

Prime Minister Nouri al-Maliki has spoken at a ceremony to mark the start of construction on Karbala’s forthcoming 140,000 bpd refinery, Iraq Directory reports.

As part of Iraq’s energy strategy to increase refining capacity to 750,000 bpd, the new $ 6 billion refinery will be constructed by a consortium led by Hyundai Engineering and involving the Refinery of Karbala Corporation over a period of four years. When complete it will produce a range oil and gas based products, including asphalt.

Iraq is planning 3 other major refineries, including the Nasiriyah Integrated Project, a 300,000 bpd refinery, the auction for which takes place on June 19th.

(Source: Iraq Directory) 

Iraq Business News

contract with the Korean firm to build refinery in Karbala cost more than 6 billion dollars

By , February 12, 2014 7:01 am

http://theiraqijournal.com/contract-with-the-korean-firm-to-build-refinery-in-karbala-cost-more-than-6-billion-dollars/

Hyundai Wins $6bn Kerbala Refinery Deal

By , January 8, 2014 7:38 pm

Hyundai Wins $  6bn Kerbala Refinery Deal

By John Lee.

A group of companies led by Hyundai Engineering & Construction has won a $ 6.04-billion contract to build the new 140,000-bpd Kerbala oil refinery.

The Iraqi cabinet approved the deal between the Oil Ministry’s State Company for Oil Projects (SCOP) and the consortium on Tuesday.

Construction is to be completed within 54 months.

In June, French company Technip won the contract for project management consultancy (PMC) services for the engineering, procurement and construction (EPC) phase of the Karbala refinery.

(Sources: ConstructionWeekOnline, Iraq Oil Report)

Iraq Business News

Min. of Oil Statement on Maysan Refinery

By , December 19, 2013 8:47 pm

Min. of Oil Statement on Maysan Refinery

Following the recent article by our Expert Blogger, Ahmed Mousa Jiyad, Iraq’s Ministry of Oil has issued a statement regarding Satarem‘s involvement with the Missan [Maysan] refinery project. The statement is carried here in full and unedited:

Commenting about the news that was declared by the media, press & some websites about the memorandum of understanding “not the contract as the media said” between SATAREM Company and the ministry of oil to invest in Maysan refinery,

and in order to inform the public & press … the ministry of oil wants to clarify the following:

First: the ministry offered many opportunities in 2010 for the private sector (Iraqi & foreign) to invest in 4 refineries according to the formula of funding, build, operate & ownership, which are (Karbala, Maysan, Karkuk & Nasirya). During that period, many companies presented their offers to invest in those refineries, but for the reasons of the project economics, the technical, financial & experience capabilities of the presenting companies there was no opportunity, so the refinery of Karbala was awarded to the government investment, while the refinery of Nasirya was going to be according to the form of (Field & Refinery) And the ministry is now studying and analyzing the offers. While Karkuk refinery is still presented as an investment opportunity and the ministry is studying some of the presented offers.

Two: in relation to Maysan refinery. Many companies presented their offers, but for the reasons of weak financial & technical capabilities, commercial reasons, no communication to present the needed qualifications or the offers does not match the laws & instructions. none of those offers was adopted so the offer of SATAREM Company is now being considered.

Iraq Business News

Doubt Surrounds Satarem-Missan Refinery Deal

By , December 17, 2013 5:29 pm

Doubt Surrounds Satarem-Missan Refinery Deal

By Ahmed Mousa Jiyad.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Recent information on Satarem sheds serious doubt about its prospects and ability for executing the Missan Refinery project.

Iraq’s Ministry of Oil signed, in the presence of the Prime Minister Mr. Nuri Al-Maliki, a memorandum of understanding (MoU) with Swiss firm Satarem (represented by what was reported as Chief Executive Jerome Friler) on 10 October for the development of a 150 kbd refinery in Missan province at an estimated cost of $ 6 billion.

Almost a year ago I received communication from a consultant with a California based financial firm enquiring about Missan refinery and stating “For the last year or so, I have been working with an Iraqi group, developing the [Missan] refinery complex”. A few weeks later I received communication from an Iraqi law firm in Baghdad indicating they were “Advising on [Missan] refinery construction”. The two communications might be connected!

When reviewing information on the signed MoU, I assumed the above mentioned financial and legal firms were involved in the project. But soon afterwards the California based consultant informed me they were not, adding further, “We are of the opinion that the sovereign and financial payment extension risk in Iraq is too high to justify any investment from [….], at this time.”

Most of the comments reported within business, professional and media circles since the signing of the MoU are that Satarem is not known to be a refinery-specialized firm, or to have a track record in modern refinery construction. I did not find information on this company in the “Public Companies” or “Investment Fund Group” of the SEDAR company database.

Iraq Business News