IRAQ | Oil Refineries

[sh_jinny]

Hi, apart from the small plants below, how about these small refineries?

Kasik (Mosul)
Seniyah (Salah ad Din)
Al Jazeera
Muftiah
Sulaymaniya

are they operational?

Originally Posted by sheytanElKebir

there are lots of small refineries in Iraq: of the top of my head there are:

erbil - 20k
qayarah - non operational as far as i know
hadithah - 10k
Najaf - 30k
Samawah - 30k
khanaqin - 10k (not operational)

did I miss any out?

and yes they do just produce low quality diesel and petrol, so they are completely useless. The one in Najaf that you mentioned is the most "modern" one and is marginally better. But still iraq needs proper modern petrochem complexes to produce the full range of refined products.

[sheytanElKebir]

Originally Posted by sh_jinny

Hi, apart from the small plants below, how about these small refineries?

Kasik (Mosul) - no idea
Seniyah (Salah ad Din) - no idea
Al Jazeera - no idea
Muftiah - no idea
Sulaymaniya - out of Iraqi jurisdiction!

are they operational?


hey, I may ask down at the oil ministry next week and get back to you!

[sh_jinny]

Originally Posted by sheytanElKebir

Kasik (Mosul) - no idea
Seniyah (Salah ad Din) - no idea
Al Jazeera - no idea
Muftiah - no idea
Sulaymaniya - out of Iraqi jurisdiction!

are they operational?


hey, I may ask down at the oil ministry next week and get back to you!

My guess is they're running at very low rate (2-4kbd?). The ministry will know better!

I also wonder if the current & new Kirkuk refineries can supply non-kurdish regions? Is there any rule on that?

[sh_jinny]

hi, does anyone know if one can bring crude to the oil pumping stations (eg Baiji pump station, or IT-2 (near Jawan) and sell it to the iraq-turkey pipeline?

And is there any limits on the quality of the crude to be able to mix in?

Thanks!

[sheytanElKebir]

sh_jinny.

you're asking questions that are really beyond the ability of posters here to answer. Firstly the only companies able to place oil into the pipelines are regulated by the oil ministry. The strategic oil pipeline in theory handles all grades of crude oil, but due to the nature of the buyers, the oil types would be segregated. In practice in Baiji you get mostly kirkuk crude.

however your best answer would be from the oil ministry itself. All the oil companies with service contracts are now exporting via the southern terminals as Kirkuk was not auctioned off (due to the standoff with KRG).

[sh_jinny]

yes sorry about the level of details, i was just trying...but this is very useful thanks!!

[BigDreamer]

Iraq signs Memorandum of Understanding for construction of Mosul refinery, petrol plaza

[8/27/2011]

The Iraqi Ministry of Oil signed a Memorandum of Understanding (MoU) with an Egyptian company to implement an investment refinery in Mosul with a capacity of 150 thousand b/d, as reported by the oil undersecretary for refineries' affairs.

Undersecretary Ahmed Al-Shama' informed that the memorandum laid the principles to build an investment refinery in Mosul to be supplied by the crude oil from Najama and Qayara oil fields.

The company was granted a 3-year period to prepare the studies and designs. According to Shama's statement, the company has the right to open its fuel stations with the benefit of other oil products.

Shama pointed out that the aim of the project is to benefit from the heavy crude oil to produce also other products for internal consumption.

[Persi]

New Refineries for Karbala and Maysan

5/10/2011

The Iraqi Oil Ministry wants to build two new refineries in the provinces of Karbala [Kerbala] and Missan [Maysan], in order to reduce the country’s dependency on foreign oil imports, according to AKnews.

The one in Karbala will produce up to 140.000 barrels of fuel per day, the one in Missan up to 150,000.

The announcement comes one day after the Oil Ministry reported that Iraq is still not able to produce enough oil and gas to meet its own demands. While Iraq produces 8 million liters of liquid gas per day, it consumes approximately 12 million liters.

The situation is even worse as far as oil is concerned: 12 million liters of refined oil are produced in Iraq every day, however another 12 million liters have to be imported from international markets.

In a move that some regards as a panic reaction, the Oil Ministry this weekend halted its programme to provide free fuel to owners of generators. The programme started in June in order to increase private energy production and cost $400 million [468 billion Iraqi dinars].

[Persi]

Axens Wins Contract at New Nassiriya Refinery

06/10/2011.

The State Company for Oil Projects (SCOP), part of the Iraqi Ministry of Oil, has awarded the French-based Axens, a fully-owned subsidiary of IFP Energies nouvelles, the Basic Design and License contracts for the construction of the new refinery in Nassiriya, Iraq. Axens will supply the following process technologies for the refinery:

H-Oil RC technology for the hydroconversion of 52,000 barrels per day (BPSD) of vacuum residue (VR). The H-OilRC plant will convert deeply VR to low sulfur distillates and produce a low sulfur residue.

Prime-D™ – Gas Oil desulfurization hydrotreater. The 105,000 BPSD unit will produce ultra low sulfur diesel (ULSD) with less than 10 ppm of sulphur.

Prime-K™ – Kerosene desulfurization hydrotreater with a processing capacity of 24,000 BPSD.

Butane Isomerization unit – having a process capacity about 11,900 BPSD.

The refinery will have a capacity of 300,000 BPSD of domestic crude oil and will deliver high quality products mainly for the domestic market.

[Persi]

Iraq Plans Refinery When Developing Nasiriyah Oil Fiel

16/10/2011.

Bloomberg reports that Iraq will ask companies to build an oil refinery when it invites bids to develop the Nasiriyah field south of Baghdad.

Abdul- Mahdi al-Ameedi, the head of the ministry’s licensing department, said, “we will not develop the Nasiriyah oil field on its own but in tandem with the establishment of a refinery”.

The refinery will have a capacity of 300,000 barrels a day, he said, but the ministry hasn’t specified a date for the tender and isn’t in negotiations on the plan.

It has informed foreign companies including Eni SpA, Nippon Oil Corp. and Chevron about the project, he said

[IraqiPlan_et]

Shaw to Conduct Feasibility Study to Rehabilitate Refinery in Iraq
Dec 13, 2011


The Shaw Group Inc. today announced it has been awarded a contract by the South Refineries Company, which is part of the Republic of Iraq's Ministry of Oil, to provide a feasibility study for the rehabilitation of its 140,000 barrels per day refinery in Basra, Iraq. The study will assess the current condition of the refinery and estimate the engineering, equipment supply and construction services required to improve its operation.

The study is funded by the United States Trade and Development Agency (USTDA) through a grant to the South Refineries Company. This is the first grant the agency has provided directly to an Iraqi grantee, marking the USTDA's support of Iraq's long-term economic development.

"This study will help to promote the development of Iraq's oil business and modernize vital facilities," said James Glass, president of Shaw's Energy & Chemicals Group. "This is Shaw's fourth refining project in Iraq, reinforcing our continuing commitment to the Middle East region."

In Iraq, Shaw is conducting feasibility studies and front end engineering and design (FEED) for two grassroots 150,000 barrels per day refineries near the cities of Maissan and Kirkuk, for the Republic of Iraq's Ministry of Oil. The FEED work includes all process units, offsite facilities and utilities for both refineries. Through a fluidized catalytic cracking alliance, Shaw, with its partner, Axens, are providing a process design package for a 30,000 barrels per day residual fluidized catalytic cracking (RFCC) unit at Midland Refineries Company's refinery in Daura.

The undisclosed value of the contract will be included in Shaw's Energy & Chemicals segment's backlog of unfilled orders in the first quarter of fiscal year 2012.

The Shaw Group Inc. is a leading global provider of engineering, construction, technology, fabrication, remediation and support services for clients in the energy, chemicals, environmental, infrastructure and emergency response industries. A Fortune 500 company with fiscal year 2011 annual revenues of $5.9 billion, Shaw has approximately 27,000 employees around the world and is a power sector industry leader according to Engineering News-Record's list of Top 500 Design Firms.

This press release contains forward-looking statements and information about our current and future prospects and our operations and financial results, which are based on currently available information. The forward-looking statements include assumptions about our operations, such as cost controls and market conditions, that may not be realized. Actual future results and financial performance could vary significantly from those anticipated in such statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, the occurrence of certain events or otherwise.

Among the factors that could cause future events or transactions to differ from those we expect are those risks discussed under Item 1A "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended August 31, 2011, and other reports filed with the Securities and Exchange Commission (SEC). Please read our "Risk Factors" and other cautionary statements contained in these filings.

As a result of these risks and others, actual results could vary significantly from those anticipated in this press release, and our financial condition and results of operations could be materially adversely affected.

[BigDreamer]

Kirkuk Refinery Design Plans to Finish by April

http://www.bloomberg.com/news/2012-0...cial-says.html

Iraq will complete initial planning for a 150,000 barrel-a-day refinery in the city of Kirkuk in April, according to Abdulghafoor Abduljabbar, director general of North Refineries Co.

Shaw Energy & Chemicals Ltd. has completed 60 percent of the refinery’s front-end engineering and design phase, Abduljabbar said at an oil forum in Tokyo today.

Engineering and design has already been completed for a 150,000 barrel-a-day plant in Maissan, a 200,000 barrel-a-day facility in Karbala and a 300,000 barrel-a-day refinery in Nasiriya, he said.

[IraqiPlan_et]

Japan to grant 2 billion dollar-loan to Iraq
25 Feb 2012


BAGHDAD / Aswat al-Iraq : Japan will grant Iraq a 2 billion-dollar loan to build a refinery in Iraq, provided the contract should be given to a Japanese company, according to Kuwaiti news agency.

The refinery shall be a part of a big refinery complex in Basra, south Iraq.

This is the greatest assistance given to an Iraqi project ever.

The loan will cover the costs of the whole project, but will be expanded if the implementation is given to a Japanese company.

The terms of the loan stipulated spending 624 million dollars for materials to be made in Japan.

Contractors' bids shall be submitted next year, to be decided in 2014.

[SumerianKing]

Why are they taking a loan... I thought they had $100 billion to spend this year.

[IraqiPlan_et]

Originally Posted by SumerianKing

Why are they taking a loan... I thought they had $100 billion to spend this year.

This is a win only deal for Iraq. Iraq needn't to think about funding a 2 BILLION refinery from the budget (that's like 2% just for one refinery), instead it's a sure funding from Japan. At the same time Iraq get's to buy Japans technically advanced equipment in return....win only deal.

[SumerianKing]

Originally Posted by IraqiPlan_et

This is a win only deal for Iraq. Iraq needn't to think about funding a 2 BILLION refinery from the budget (that's like 2% just for one refinery), instead it's a sure funding from Japan. At the same time Iraq get's to buy Japans technically advanced equipment in return....win only deal.

hmm I see what you mean.

[sheytanElKebir]

$2bn will fund a part of a refinery / petrochem complex (I presume this is for the rehabilitation of PC2 in Basra?).

The Nassiriya refinery is still in FEED / Environmental Impact Assessment stage. Its final cost will be in the $7.5-$8Bn range also funded by loans.
BTW. the nassiriya refinery will refine crude from nassiriya and some of the refined produce will be exported via Umm Qasr.

ultimately all these projects will have to be financed since Iraq simply does not have the liquid cash to pay up front. I suppose another way would be to allow foreign companies to build and own these refineries (and buy oil from SOMO), but Iraq's statist government doesn't yet accept such solutions...

[sheytanElKebir]

Iraq's refinery situation must change
Iraq has repeatedly stated that it intends to build four modern and complex refineries with a total capacity of 750 thousand barrels a day

This week a conference will be held in London under the title ‘Iraq Refinery 2012'. The Ministry of Oil is sending a high level delegation to the conference and said in a letter to the organisers that it "will use this event as an occasion to present the programme for planned future refineries, the redevelopment of the existing refinery infrastructure, and our strategy for the redevelopment of the refining and petroleum industry in general. The Ministry will use this event to engage in constructive dialogue and exchanges for effective collaboration and joint venture opportunities."
For some time now, Iraq has repeatedly stated that it intends to build four modern and complex refineries with a total capacity of 750 thousand barrels a day and is apparently using the occasion to promote private investment in these refineries.
A few years ago, Iraq promulgated a law allowing private investment in refineries and amended the law to give investors a 5 percent discount on crude oil in addition to other incentives and a guarantee to buy the products at international prices, while allowing the investor to export surpluses.
Iraq also went ahead in almost completing front end engineering and design (FEED) with a cost running in tens of millions of dollars for each refinery. Yet no interest was shown so far by any investor and it is unlikely that any will come forward in the short term.
Article continues below


There is no doubt that Iraq needs to expand its refining industry though, in parallel, priority should also be given to rehabilitating, modernising and expanding the processing of existing refineries to rid them of the heavy end of the barrel and reduce the crude oil needed to satisfy the demand.
The capacity of existing refineries stood at about 700,000 barrels a day in 2002 but now is at 800,000. But these refineries keep working on average of 65-70 per cent of capacity and sometimes less for various reasons ranging from refinery status or local conditions and the general situation in the country since the occupation.
Therefore, to satisfy domestic demand, Iraq resorted to importing large quantities of light petroleum products as early as 2003 when it was actually exporting substantial amount of products in 2002.
In the years 2004-2011, Iraq imported on average 3.7 million tonnes a year of light products such as LPG, kerosene, gasoil and especially gasoline. The total imports since 2003 may be more than 30 million tonnes at a cost running into billions, which would have been more than sufficient to finance the expansion of the existing refineries and build at least two large-scale modern ones.
Rising gasoline imports
The trend of imports is on the rise and is likely to continue for some time to come. The Ministry of Oil itself estimates that gasoline imports in 2014 could be as high as 47,000 barrels a day or over two million tonnes a year.
The ministry, however, believes other products will be in slight surplus but this is doubtful and more imports will be forthcoming. The problems with imports are not just the cost associated with them but the huge logistics problem of importing through a single-entry point in the south and delivering the products throughout the country.
At the same time the import facility is a makeshift arrangement and Iraq needs to have a proper and independent arrangement for this operation, which can be used for exporting products when conditions improve.
If Iraq is intent on privatising the refineries, the question may be asked why the ministry did not include this programme as a factor when it awarded many fields and a huge portion of the country's reserves to international oil companies.
For private investors, refinery investment is difficult in the best of circumstances due the limited margin of profit most of the time. But for a government in an oil-producing country there are many advantages in building these refineries to secure the demand for oil products, provide employment, improve infrastructure and introduce new skills and technology which can spill over to other sections of the economy.
Iraq only has to look to the progress made in some neighbouring countries which have adopted similar programmes.
Iraq has to face the responsibility of at least building the first refinery expeditiously using its own resources. At the same time the site selection of the new refineries appears to have been influenced by a desire to please local governments rather than satisfy an optimum objective for the whole country. This has to be reviewed while there is still time.

[sheytanElKebir]

Iraq and Chevron Phillips Chemical Co., a joint venture of Chevron Corp. (CVX) (CVX) and ConocoPhillips (COP) (COP), signed a letter of intent to evaluate the feasibility of developing a petrochemical plant in the country, officials said.

The company would examine building a new facility and upgrading an existing Iraq-owned petrochemicals factory in southern Basra province, Hanaa al-Husseini, a spokeswoman for the Industry and Minerals Ministry, said today in Baghdad.

Melanie Samuelson, a spokeswoman for Chevron Philips, said in an e-mailed statement that the company, with headquarters in The Woodlands, Texas, wants to assess “the feasibility of developing an integrated petrochemical complex.” Both Chevron Phillips and the ministry declined to give additional details, including cost estimates or dates for the project.

Iraq holds the world’s fifth-largest crude reserves and the fifth-biggest natural-gas deposits in the Middle East, according to data from BP Plc that also include Canadian oil sands. The government, which depends on crude sales for more than 90 percent of its official income, wants to diversify into chemicals production and other industries.

Iraq’s oil output is on the rebound after stagnating for years during the rule of Saddam Hussein, ousted by a U.S.-led invasion in 2003. The nation burns off natural gas produced in association with crude because it lacks the infrastructure to use it as a fuel for electricity plants or feedstock for petrochemicals.

The ministry’s al-Husseini said April 9 that Shell Chemicals Ltd. agreed in a separate arrangement to study the feasibility of a petrochemical plant.

[Ali - Iraq]

Iraq Plans to Boost Oil-Refining Capacity by 23% Early Next Year
Iraq’s refining capacity will increase by 23 percent to 760,000 barrels a day by early next year once refineries are enlarged, according to Deputy Oil Minister Ahmad al-Shamaa.
The expansions, particularly of the Daura facility in Baghdad and the Basra plant in the south, will add 140,000 barrels a day to existing capacity, he said today in an interview in the Iraqi capital. The enlargements are happening as Iraq boosts crude production capacity, he said.
Iraq’s oil-processing facilities have been running below capacity because of damage sustained since the 2003 U.S.-led invasion. The country plans to build four refineries at a cost of about $25 billion, including a 300,000 barrel-a-day plant in Nasiriyah and a 140,000 barrel-a-day processing plant in Karbala, both in the south, Shamaa said.
The Iraqi government plans to pay for the Karbala refinery from its own budget and is preparing to seek bids for the construction of the Nasiriyah plant as part of the contract to develop the oil field of the same name, Shamaa said.
The nation holds the world’s fifth-largest crude reserves, according to data from BP Plc (BP/) that include Canadian oil sands.