Iraq’s Oil Ministry is inviting investors to take part in the development of three new oil refineries across the country. The three refineries at Dhi-Qar in the south, Missan in the southeast and Kirkuk in the north of the country will have a total planned capacity of 150,000 barrels a day (b/d).

Ahmed al-Shammaa, the Oil Ministry’s undersecretary for refinery affairs said paper work for the development of refineries will be made on completion of a feasibility study by the ministry.

“The three projects will be completed according to refineries investment law which would provide legal and economic protection for international investors”, said Al-Shammaa.

In 2007, the Iraqi parliament approved a law allowing for private investment in refining and for foreign or local firms to build and operate domestic refineries. Baghdad previously offered a 1 per cent discount on the supplied crude, but as an incentive to investors on 28 April, parliament approved a set of legal amendments raising the discount to 5 per cent.

Baghdad is already planning to build four major refineries, costing $23bn with a total processing capacity of 740,000 b/d. The largest at Nassiriyah in south Iraq will cost almost $8bn and will have a capacity of 300,000 b/d. US-based Foster Wheeler is conducting the feasibility study and design, which is expected to be completed in the first quarter of 2012 (MEED 3:6:10).

Two 150,000 b/d refineries, costing $5bn each are planned for the Missan province in the south and at Kirkuk in the north. The US’ Shaw Group will complete the feasibility study and design for both by the end of 2011. A 140,000 b/d refinery is also being designed by France’s Technip in Karbala.