Local group awarded Iraq refinery deal

24 February 2014

KAR Group to build refinery in Ninewa province

The local KAR Group have won a deal to build a 90,000 barrel a day (b/d) refinery in the Ninewa province of northern Iraq.

Contracts are yet to be signed, according to local press reports citing provincial governor, Atheel al-Nujaifi.

Erbil-based KAR Group and Turkey’s Calik submitted proposals to the provincial government in the middle of January for the refinery’s construction and a 20-year operatorship deal.

The federal Oil Ministry’s plan for Iraq’s downstream development includes a new refinery in the province, but the Ninewa authorities have moved ahead independently to address the provinces fuel shortages.

There is currently a 20,000 b/d refinery in the Qayarah area, which was built in 1955 and is operated by state-owned North Refineries Company. However, most of its units have been out of operation since the mid-1980s.

The new refinery, which will be built at the town of Hamdaniya, near the city of Mosul, will also include a 300MW power plant. It will be built in two phases, with the first 60,000 b/d train expected to be completed by July 2015. KAR currently operates the 80,000 b/d Erbil refinery in the semi-autonomous Kurdistan Region.

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