Qaiwan Group has floated the tender for bids on the phase-three expansion of its Bazian refinery in the Kurdistan region of northern Iraq.

The company is planning to increase the capacity of its refinery in Sulaimaniyah to 84,000 barrels a day (b/d) from a current capacity of 34,000 b/d.

Qaiwan has asked interested engineering, procurement and construction (EPC) contractors to submit bids for the tender by 14 July, with an award expected in the fourth quarter of 2014, according to a source close to the project.

The scope of the phase-three expansion of refinery is expected to include: crude distillation unit; naphtha hydro-treating unit; continuous catalytic reformer; isomerisation unit; kerosene hydro-treating unit; amine regeneration unit; sulfur recovery unit; waste water treatment unit; and offsites and utilities

The project is planned to be completed in 2017.

France’s Technip has completed the front-end engineering and design (feed) work for the refinery as well as a pipeline connecting the refinery to the Taq Taq and Bina Bawi oil fields in Sulaimaniyah province.

Qaiwan has also reportedly tendered the EPC contract on the 110-kilometre pipeline, which has a proposed capacity of 125,000 b/d, with bids expected in July.

While Iraqi Kurdistan is on track to become a major exporter of crude oil in the coming years, the region faces a supply shortage of refined products without significant investment in downstream capacity.