Following the recent article by our Expert Blogger, Ahmed Mousa Jiyad, Iraq's Ministry of Oil has issued a statement regarding Satarem's involvement with the Missan [Maysan] refinery project. The statement is carried here in full and unedited:
Commenting about the news that was declared by the media, press & some websites about the memorandum of understanding "not the contract as the media said" between SATAREM Company and the ministry of oil to invest in Maysan refinery,
and in order to inform the public & press … the ministry of oil wants to clarify the following:
First: the ministry offered many opportunities in 2010 for the private sector (Iraqi & foreign) to invest in 4 refineries according to the formula of funding, build, operate & ownership, which are (Karbala, Maysan, Karkuk & Nasirya). During that period, many companies presented their offers to invest in those refineries, but for the reasons of the project economics, the technical, financial & experience capabilities of the presenting companies there was no opportunity, so the refinery of Karbala was awarded to the government investment, while the refinery of Nasirya was going to be according to the form of (Field & Refinery) And the ministry is now studying and analyzing the offers. While Karkuk refinery is still presented as an investment opportunity and the ministry is studying some of the presented offers.
Two: in relation to Maysan refinery. Many companies presented their offers, but for the reasons of weak financial & technical capabilities, commercial reasons, no communication to present the needed qualifications or the offers does not match the laws & instructions. none of those offers was adopted so the offer of SATAREM Company is now being considered.