
Private Kurdish company Kar Oil & Gas is managing the refinery.
The firm is responsible for extracting the oil from Khurmala and transporting it using a 40-kilometre pipeline to a central processing plant in Erbil.
The KRG says the refinery will produce diesel, benzene and kerosene, as well as increase the availability of fuel for vehicles and homes.
Switzerland's Addax Petroleum and Turkey's Genel Enerji started international oil exports from the Taq Taq field in the Kurdistan region in June (MEED 1:6:09).
Addax says it will export the crude oil to international markets through the Iraq-Turkey export pipeline which runs to Ceyhan port.
Addax expects to pump up to 40,000 b/d and is in the process of increasing capacity to 70,000 b/d.
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