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By John Lee.

Prime Minister Mohammed S. Al-Sudani has announced that Iraq's refining capacity will soon reach 1,542,000 barrels per day (bpd) following the expansion of key refineries.

During a visit to Maysan province, the Prime Minister inaugurated the Maysan [Missan] Refinery Development Project, which will increase its capacity from 40,000 to 110,000 bpd.

He highlighted that this project had been stalled since 2014 but was revived as part of the government's strategy to restart delayed energy initiatives. The expansion, to be completed within 6 to 8 months, will be executed entirely through Iraqi expertise and national effort.

Al-Sudani also emphasized the Baiji Refinery expansion project, which has already added 70,000 bpd to Iraq's refining capacity. The facility is expected to be fully operational within two months, contributing to the country's self-sufficiency in refined petroleum products.

Key Highlights from Al-Sudani's Remarks:

• The Maysan Refinery expansion will introduce a new 70,000-bpd unit, alongside hydrogenation, gasoline enhancement, FCC, diesel, and kerosene units.
• The project aligns with the government's goal of converting 40% of exported crude into refined products by 2030, reducing Iraq's dependence on raw oil exports.
• The Cabinet's approval for the refinery expansion will lead to the development of a new industrial oil city, supporting petrochemical and fertilizer projects.
• These initiatives will create thousands of job opportunities and represent a key step in Iraq's economic reform efforts.

(Source: PMO)

By John Lee.

Iraqi Prime Minister Mohammed S. Al-Sudani chaired a meeting on Sunday to assess summer electricity supply plans and the progress of oil sector projects.

The Minister of Electricity outlined strategies to ensure stable power supply, including fuel station operations, while the Minister of Oil detailed fuel supply plans for power plants, including floating and mobile platforms under review.

Key decisions included:

• Completion of a gas transmission line from Basra's power plants to a floating platform.
• Approval of a new 40km gas pipeline from Al-Mahmoudiya to Bismayah to ensure full-capacity operation of the Bismayah power plant.
• Assessment of fuel oil supply, storage, and import logistics.

The meeting also reviewed strategic oil projects, including:

• Basra-Haditha oil pipeline.
• Seawater supply pipelines and treatment plant at Basra Oil Company (BOC).
• Offshore pipeline expansions (third, fourth, and fifth phases).
• Artawi [Ratawi] gas complex (Phase II).
• Mansouriya, Akkas, and Faihaa [Block 9] field developments.
• FCC fluid catalytic cracking unit project.
• Fifth and sixth licensing rounds.

The meeting assessed progress on government program projects, with an update on execution rates as of February 2025.

(Source: PMO)

By John Lee.

The Iraqi Council of Ministers has approved an increase in the consultancy contract amount for the Basra Refinery Development / Fluid Catalytic Cracking (FCC) Project with Japan's UNICO and France's Technip.

The decision also includes an extension of the contract duration, granted as an exception to Government Contracting Instructions No. (2) of 2014.

This move aligns with Iraq's strategy to modernize refining capacity and enhance fuel production efficiency.

(Source: PMO)

By John Lee.

The Iraqi Ministry of Oil has announced plans to expand Maysan [Missan] Refinery by adding a new refining unit with a capacity of 70,000 barrels per day (bpd), increasing the refinery's total output to 110,000 bpd.

During a visit to the refinery, Deputy Minister for Refining Affairs Adnan Mohammed Hammoud emphasized that the project aligns with the government's strategy to develop the refining sector, enhance domestic production of petroleum products, and reduce reliance on imports. The expansion will ensure a stable fuel supply for Maysan and neighboring provinces.

The project includes Euro-5 standard units, such as a hydrocracking unit, an FCC unit, and facilities for gasoline, gas oil, and white oil production, along with environmentally friendly service units.

The Deputy Minister called on refinery staff to ensure efficient operations and uninterrupted fuel supply. He also led a meeting with senior officials to review progress and development plans.

Maysan Refinery, operated by South Refineries Company (SRC), currently has a 40,000 bpd capacity and is considered a key facility in Iraq's refining sector.

(Source: Ministry of Oil )

By John Lee.

Iraqi Prime Minister Mohammed S. Al-Sudani has inaugurated several oil sector projects in Baiji District, Salah al-Din Province, on Thursday:

• The fourth and fifth oil refining units at Al-Siniyah Refinery in Salah al-Din Province, each with a capacity of 10,000 barrels per day, increasing the oil refinery's total capacity to 50,000 barrels per day;
• Units for gasoline enhancement, gas and industrial wastewater treatment, liquefied gas production, and kerosene hydrogenation at the North Refinery (pictured) in Baiji District;
• Launch of construction for the third unit at the Salah al-Din Refinery, with a production capacity of 70,000 barrels per day and high, environmentally friendly standards.

He said that the Ministry of Oil has been directed to complete studies for the petrochemicals project and the Fluid Catalytic Cracking (FCC) project in Baiji, adding that plans are in place to make Baiji the largest oil industrial city in Iraq and the region.

(Source: PMO)

By John Lee.

The Japan International Cooperation Agency (JICA) signed a $388-million loan agreement with Iraq on Sunday, to provide Japanese ODA loan for the sixth phase of the Basrah Refinery Upgrading Project.

In a statement, JICA said:

"This project aims to improve the quality and productivity of petroleum products, reduce the supply-demand gap, decrease the environmental load, and transfer related technologies, by installing a new fluid catalytic cracking (FCC) Complex with relevant units at Basrah Refinery in Basrah Governorate in the southern part of Iraq, thereby contributing to economic and social reconstruction in Iraq."

In this sector, JICA has so far implemented eight ODA Loan projects with a total approved loan amount of 563.0 billion yen [$3.6 billion]. This includes financing for all previous stages of the Basrah Refinery Upgrading Project, which commenced in 2012.

Japan's JGC Corporation has been the main contractor on the project.

At a separate meeting on Monday, the Undersecretary for Refining Affairs at the Ministry of Oil, Mr. Hamed Younis, said that the project will become operational in mid-2025.

He added that the project will contribute significantly to Iraq's production of refined petroleum products, with the following outputs:

1. Gasoline: Production of 4.5 million liters per day meeting Euro 5 standards.
2. Hydrogenated Diesel (Kerosene): Production of 6.5 million liters per day meeting Euro 5 standards.
3. LPG (Liquefied Petroleum Gas): Production of 300 tons per day.
4. Other Refined Products:
   • White oil, kerosene, and naphtha: Combined production of 3.5 million liters per day.
   • Enhanced fuel oil: Production of 4.5 million liters per day.

More details:

• Project Component
  1. Construction of FCC Complex
  2. Consulting Services
• Maximum Loan Amount
  • 60,040 million Japanese Yen
• Annual Interest Rate
  • Project: 0.2%
  • Consulting Services: 0.01%
• Repayment Period
  • 40 Years
• Grace Period
  • 10 Years
• Procurement
  • Japan Tied
• Executing Agency
  • Ministry of Oil
• Contribution to SDGs
  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation and infrastructure)
• Planned Implementation Schedule
  1. Completion of the Project: December 2025, when the facilities are put into service
  2. Issuing of letters of invitation for consulting services (including detailed design work): already hired
  3. Tendering of announcement of initial procurement package for international competitive bidding on project construction: already procured package for EPC
• STEP
  • Special Terms for Economic Partnership (STEP)* will apply to the Japanese ODA loan for this project, and Japanese technology, Japan's advanced technical know-how and engineering skills will be utilized at the FCC complex being constructed under the project.
  • * STEP refers to special assistance terms for promoting the visibility of Japanese aid through a transfer of outstanding Japanese technology and expertise to developing nations. The main contract is Japan tied and subcontracting is general untied. The main agreement partner must generally be a Japanese company, an overseas subsidiary of a Japanese company, or a joint venture between a Japanese company and the borrowing country where the Japanese company is the lead partner, although under certain conditions a joint venture between a Japanese company (which is the lead partner of the joint venture) and an affiliated company (as accounted under the equity method) of a Japanese company may be the main agreement partner.

Click here to read the full ex-ante evaluation.

(Sources: JICA, Ministry of Oil)

From Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Shock ruling indicates tension over authority among Iraq's top courts

A judicial crisis has blown open as Iraq's Federal Court of Cassation (FCC) has for the first time overturned a ruling by the Federal Supreme Court (FSC).

The contention revolves around a retired judge's compensation package, which has now been deemed unconstitutional.

Of further note, the FCC's chief judge has asserted that it holds ultimate authority over all rulings in Iraq.

This potentially opens the door for a reassessment of other hot-button verdicts by the Federal Supreme Court which have been accused of being politicized.

The full article can be viewed here (registration required).

By John Lee.

The Iraqi Cabinet has endorsed a recommendation for financing the Fluid Catalytic Cracking (FCC) project, which it says is contracted by the South Refineries Company (SRC) with a Japanese company.

Iraq Business News understands this to be the Basra Refinery Development Project, which is to be built by Japan's JGC Corporation.

The cabinet approved the lowering of port storage fees by 75 percent for materials used in this project.

It also instructed the General Company for Iraqi Ports (GCPI) to create dedicated areas for government imports.

(Source: Media Office of the Prime Minister)

Addressing Food Loss and Waste for a Sustainable Iraq

On the International Day of Awareness of Food Loss and Waste (IDAFLW), the Food and Agriculture Organization of the United Nations (FAO) and the United Nations World Food Programme (WFP) come together with a renewed commitment to tackle a pressing global challenge: food loss and waste. In a world marked by climate change, conflicts, and economic uncertainties, this collective mission has never been more critical.

The 2023 report of the State of Food Security and Nutrition in the World has unveiled a stark reality: between 691 and 783 million people faced hunger in 2022, an increase of 122 million people since 2019, before the pandemic. WFP's hunger monitoring systems indicate that 33 million in the Middle East and North Africa (MENA) region do not have sufficient food consumption.

Globally, about 13% of all the food produced is lost in the supply chain, and another 17% is discarded by households, restaurants, and stores. These losses represent not only a missed opportunity to alleviate hunger but also a significant strain on our environment and resources.

Responsible for a third of total greenhouse gas emissions and contributing to biodiversity loss, global agri-food systems are under threat. As the world's population continues to grow, we face the daunting reality that by 2050 we will need nearly three Earth-sized planets to sustain current lifestyles. It is imperative that we transform our food systems to be more efficient, inclusive, sustainable, and resilient.

In our joint commitment to address food loss and waste for a sustainable Iraq, we support the efforts of the Government of Iraq and the Kurdistan Regional Government to develop and implement national targets and strategies aligned with SDG 12.3. This includes fostering supply chain collaboration to reduce food waste at every stage, from production to processing and storage.  Equally important is encouraging new habits and attitudes to change and decrease the amount of food people throw away.

We encourage the private sector to actively engage in supporting sustainable food supply chains and promoting responsible consumption. Businesses should invest in the modernization of food supply chains and the adoption of sustainable practices. Recognizing the vital role of mobile-based business-to-business supply platforms in enhancing efficiency, we emphasize their importance.

We highlight the benefits of reducing food waste and provide practical tips for consumers. We call on individuals to make conscious choices that reduce food waste within their homes. Additionally, we encourage consumers to actively participate in public-private partnerships aimed at reducing food loss and waste.

As we mark IDAFLW in 2023, FAO and WFP reaffirm our commitment to addressing food loss and waste in Iraq. Given the alarming statistics of undernourishment and environmental costs, urgent action is needed. Together, we envision a future where no one in Iraq goes to bed hungry, where food is valued and not wasted, and where our agrifood systems are efficient, sustainable, and resilient.

(Source: UN)

By John Lee.

The Iraqi Ministry of Oil has announced the increase in production capacity at the Karbala refinery to 140,000 barrels per day (bpd), following the activation of several production units.

Mr. Hamed Younis, the Deputy Minister for Refining Affairs, said that the Ministry is committed to implementing the directives of the Deputy Prime Minister for Energy Affairs and Oil Minister, Mr. Hayan Abdul Ghani, and the government program to operate the refinery at its full design capacity of 140,000 bpd.

Today, the refinery operates at its full operational capacity of 100 percent following the activation of the Fluid Catalytic Cracking (FCC) unit in coordination with contracting companies.

Mr. Younis also highlighted the efficient operation of the FCC assistant unit, aimed at producing high-octane gasoline. He explained that the FCC unit is the first of its kind in Iraq to produce 96 RON octane gasoline, emphasizing the refinery's contribution to covering a significant portion of domestic consumption.

(Source: Ministry of Oil)