Najaf Refinery Announces $5.5m Govt Revenues for 2010

The manager of Najaf refinery has announced that the refinery’s contribution to the province’s economy exceeded 6bn Iraqi Dinars (IQD) in 2010.

Laith al-Gharrawi [Laith al-Azzawi] told AKnews that the refinery refined 5.5m barrels of oil in 2010, bringing in a revenue for the province of 6.47 billion IQD ($5.5m), according to the law ratified in parliament stipulating that $1 is paid to the province for every barrel refined.

"The high production of the refinery in 2010 has contributed significantly to the province,” he said, adding that there would be no risks of petroleum product shortages in the province as a result of the refinery’s output.

Najaf refinery announced earlier this month, an 80% increase in production for 2010 compared to 2009 for all oil derivatives.

Wasat Refineries Company in the Oil Ministry opened the first refining unit for Najaf refinery on October 7, 2007. A second refinery was subsequently opened on March 15, 2008, and a third in 2009.

Each of the three refineries produces 10 thousand liters per day, depending on the pipeline that supplies it with crude oil from several fields.

Despite possessing some of the biggest oil fields in the region, Iraq continues to spend around 5bn IQD ($4.2m) each year importing 60% of its domestic petrol because of its outdated refineries which operate at half their original capacities.

The Iraqi Oil Ministry announced last year a number of measures to solve the problem in a bid to reach self-sufficiency. These included the construction of four new refineries in the coming years in Nasiriyah, Amarah, Nasiriyah and Kirkuk provinces, as well as the modernization of the Baiji, Doura [Daura] and Shuaiba refineries.

(Source: AKnews, Aswat al-Iraq)

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