Iraqi Dinar News

Trade Iraqi Dinar

Posts tagged: Refinery

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

Iraq Beats Kuwait to Chinese Refinery Deal

By , November 4, 2013 12:00 pm

Iraq Beats Kuwait to Chinese Refinery Deal

By John Lee.

Reuters reports that China’s state-owned Sinochem Corp plans to use Iraqi crude oil for 40 percent of the capacity of its new refinery, in what the article describes as “the latest example of Iraq beating Middle Eastern rivals in the competition for new markets in Asia“.

The deal wold replacing a preliminary agreement to use more expensive oil from Kuwait, and make Sinochem one of Baghdad’s top oil buyers next year, when the company starts its first wholly-owned refinery.

Kuwaiti crude is pricier than Iraqi oil and it is non-tradable, making it less competitive,” said a trading source with knowledge of the deal. Sinochem would still likely buy some crude from Kuwait, he added.

Sinochem’s 240,000-bpd Quanzhou plant is expected to process about 100,000 bpd of Iraqi crude after completing test runs due to start in December. It may still need to honour, at least partially, a non-binding agreement from 2007 with Kuwait to buy 240,000 bpd Kuwaiti oil for the plant. Traders said that Sinochem had never formalised the supply deal with Kuwait.

Sinochem, one of Baghdad’s long-standing Chinese customers, is already buying 200,000 bpd of Basra Light crude, most of which now goes to Chinese refineries owned by Sinopec.

(Source: Reuters)

Iraq Business News

Swiss Firm to Build $6bn Refinery

By , October 12, 2013 11:01 am

Swiss Firm to Build $  6bn Refinery

By John Lee.

Prime Minister Nouri al-Maliki says Iraq has signed a $ 6 billion deal with Swiss company Satarem to build and run southern Iraq’s first new, large-scale refinery in 30 years.

The oompany will set up the 150,000 barrel-per-day refinery near Amara, in Missan [Maysan] province, on a 50-year build-own-operate (BOO) contract.

Satarem was created in 1992 by Mr.Jérôme Friler and Mr.Adolf Wong, registered in Switzerland and operating across the globe providing solutions for heavy engineering industries.

(Sources: Prime Minister’s Office, Iraq Oil Report)

Iraq Business News

Japan to Lend $1.2bn to Iraq for Port, Refinery

By , June 13, 2013 7:09 pm

Japan to Lend $  1.2bn to Iraq for Port, Refinery

By John Lee.

Japan has offered a loans of about 120 billion yen ($ 1.24 billion) to Iraq to build a new refinery and rebuild a port.

Nikkei reports that Japan will initially lend 82.7 billion yen to build a refinery to extract natural gas liquids at the Rumaila oil field, while a second loan of 39.2 billion yen will be used to rebuild the port of Khor Al-Zubair.

Both loans will have a term of 40 years.

JGC Corp and Chiyoda Corp are expected to bid for the Rumaila refinery project, while Toyota Tsusho , Toyo Construction and Toa Corp are expected to bid for the Khor Al-Zubair rebuilding project, the newspaper said.

(Source: Nikkei, Reuters)

Iraq Business News