By John Lee.
Iraq's Ministry of Oil has signed an outline agreement with a Chinese consortium for the development of the Dhi Qar refinery.
A Ministry official described the signing of the initial principles agreement as an important step forward, and a prelude to the signing of the final investment contract for the Dhi Qar refinery project, which will have a capacity of 100,000 barrels per day (bpd).
The Director General of the Southern Refineries Company (SRC), Hussam Wali, said that the final signature of the contract will be made "after the completion of the economic model of the investment contract", and it is hoped that this will take place within three months.
The consortium consists of Chinese state-owned arms manufacturer Norinco (which owns ZhenHua Oil), PowerChina (Power Construction Corporation of China), CNEC (China Nuclear Engineering & Construction?) and the UAE Company for Middle Services Ltd.
The refinery contains units for hydrogenation, benzene improvement, isomerization, catalytic cracking (FCC), a (CCR) unit, an asphalt unit, and an electric power production unit.
(Source: Ministry of Oil)