By John Lee.
The Iraqi Council of Ministers has approved the conversion of the Kirkuk hydrogenation and gasoline improvement project, with a capacity of 12,000 barrels per day, from a Build-Own-Operate (BOO) model to a Build-Operate-Transfer (BOOT) model.
The refining fee for one barrel of oil has been set at $23, as previously determined by the Ministry of Oil.
According to a statement from the Prime Minister's Office, this shift is part of Iraq's efforts to enhance its refining capacity and optimize the management of key energy infrastructure projects.
In a separate announcement, Iraq's Ministry of Oil has announced the resumption of operations at the Karbala Refinery after completing scheduled maintenance. Deputy Oil Minister for Refining Affairs, Hamid Younis, confirmed that production of refined oil derivatives will begin within days, aiming to reach maximum production levels.
At full capacity, the refinery is expected to produce up to:
- 3,800 cubic meters per day of super gasoline and improved gasoline,
- 4,000 cubic meters of diesel,
- 2,500 cubic meters of kerosene, and
- 8,500 cubic meters of heavy fuel oil.
Younis emphasized the importance of the refinery in meeting domestic fuel demands and supporting Iraq's economy. He also led a meeting with stakeholders, including the Korean company operating the refinery, to ensure all parties fulfill their commitments ahead of the final project handover on December 15, 2024.
(Sources: PMO, Ministry of Oil)
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