Iraq’s Oil Ministry could issue tenders as early as June for the construction of the estimated $5bn Missan refinery, one of a number of planned new downstream complexes across the country.

Design work has been completed and Iraq is preparing to issue engineering, procurement and construction (EPC) tenders for the grassroot refinery at Missan in the southeast of the country along the border with Iran, a source close to the project tells MEED.

The 150,000 barrel a day (b/d) refinery’s front-end engineering and design (feed) has been carried out by the US’ Shaw Group which has also been working on designs for a similar sized complex at Kirkuk in the north of Iraq.

The Oil Ministry plans to build at least four new refineries increasing the country’s downstream capacity to 1.5 million b/d from 600,000 b/d currently, at a cost of approximately $23bn. Along with Missan and Kirkuk, new refineries will also be built at Nassiriyah and Karbala in the south.  Other downstream projects have been announced, but the Oil Ministry has not finalised its plans.

Details of the downstream investment opportunities and terms for investment will be announced at an Oil Ministry conference in London on 17-18 April. Among the incentives which the Oil Ministry hopes will bring in investment, is the offer of a 5 per cent discount on crude oil, which will be supplied by the Oil Ministry for at least 50 years. Investors will also be permitted to build and operate petrol stations within Iraq to market the refined products.