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Iraq's environmental sustainability prioritized in new UNEP/UNDP agreement

The UN Environment Programme's (UNEP) Regional Office for West Asia based in Manama, Bahrain, and the UN Development Programme (UNDP) in Iraq have joined forces, signing a four-year Memorandum of Understanding (MOU) that aims to accelerate the implementation of the 2030 Sustainable Development Agenda, particularly the environmental Sustainable Development Goals (SDGs).

The MOU identifies several priority areas that UNEP and UNDP will jointly address including; environmental policy, biodiversity and ecosystems, pollution and waste management, climate change, and supporting the Government of Iraq in its post-COVID-19 response on areas related to environmental sustainability.

UNEP and UNDP share a successful history of collaboration on projects and initiatives at the global, regional and country levels. In late 2019, the two organizations signed a global strategic partnership which strengthens engagement and collaboration at the institutional level.

UNEP and UNDP share unique and complementary attributes. While UNDP has a strong country presence and access to a wide range of stakeholders and sectoral policy, UNEP is the leading global environmental authority that sets the global environmental agenda, it has a deep-rooted science foundation, and a strong normative mandate that promotes the coherent implementation of the environmental dimension of sustainable development.

Since 2009 UNEP in West Asia and UNDP in Iraq have worked on a large portfolio of projects, including supporting Iraq with its reporting obligations under the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, and developing a National Environment Strategy and Action Plan that outlined the scale of environmental degradation in Iraq, its root causes and impacts, and necessary next steps.

As one of the signatories to the Paris Agreement in 2016, Iraq continues to priorities climate change adaptation and mitigation measures in its environmental planning and is committed to adopting a green vision and implementing green programmes.

Today's agreement puts UNEP and UNDP firmly on a path to supporting Iraq's progress towards achieving the 2030 Sustainable Development Agenda.

From his side, the Regional Director and Representative of UNEP in West Asia, Mr. Sami Dimassi, highlighted that:

"UNEP is committed to forging a strong collaboration with UNDP in Iraq to support the country in addressing environmental challenges while supporting the Government and the people of Iraq to build back better after the COVID-19 pandemic. UNDP has a successful track record in Iraq, and today, I am pleased that we have joined forces towards achieving a sustainable environment for all".

Resident Representative of UNDP Iraq, Ms. Zena Ali Ahmad, said:

"Iraq faces a number of environmental challenges - from water scarcity, to rising temperatures, to pollution, to environmental degradation due to years of conflict and neglect. Tackling these challenges in a complex setting like Iraq cannot be done alone, so we are proud to join UNEP and support the Government of Iraq in securing a healthy, sustainable environment, now and for future generations."

Resident Coordinator for Iraq, Ms. Irena Vojackova-Sollorano, said:

"Without increasing efforts to decelerate the climate crisis, the Iraqi population will not be able to live prosperously in the future. The goal of the SDGs of leaving no one behind, especially SDG 6 on Clean Water and Sanitation, SDG 7 Affordable and Clean Energy, and SDG 13 Climate Action are of particular importance for Iraq. I am pleased to see that UNEP and UNDP are increasing their activities in order to help Iraq and its population."

(Source: UN)

By John Lee.

Yesterday (Thursday), the South Refineries Company (SRC) and Iraq's Ministry of Oil (MOO) signed the contract with Japan's JGC Corporation to start construction of a new Fluid Catalytic Cracking (FCC) Complex at Basrah Refinery.

The project is funded by the Japan International Cooperation Agency (JICA)'s ODA (Official Development Assistance) loan project.

The contract ceremony was successfully held at the Governmental Palace with the presence of H.E. Mr. Ihsan Abdul Jabbar Ismael, Minister of Oil, H.E. Dr. Eng. Khaled Battal Najim Abdullah Al-Jujifi, Minister of Planning, Mr. Husam Hussein Weli, Director General, SRC, Mr. Shu Nakagawa, Charge d'Affaires ad interim, Embassy of Japan in Iraq, Mr. Yutaka Yamazaki, President of JGC Corporation, and Mr. Kei Toyama, Chief Representative of JICA Iraq Office.  At the sideline of the ceremony, H.E. Prime Minister Mustafa Al-Kadhimi hosted the meeting with the participants.

For this project named "Basrah Refinery Upgrading Project (I)(II)", JICA has so far concluded three loan agreements for:

1. engineering services loan in the amount of JPY 2,079 million [$20 million];
2. first tranche loan in the amount of JPY 42,435 million [$403 million]; and,
3. second tranche loan of JPY 110,000 million [$1.04 billion].

This project is the largest Japanese ODA loan project in Iraq. Under the assistance of JICA's concessional loans (low interest rate at 0.20% and the repayment period of 40 years including 10-year grace period). It is expected to be completed in 2025.

According to a statement from JICA, the project to construct Iraq's first-ever FCC Complex will unleash the potential of Iraq's refining sector to produce the larger volume of the high-value outputs, promote the transfer of refining technologies from Japan and help save valuable foreign currencies to import huge amount of fuels.

It says the new plant will also reduce sulfur content in the oil products in accordance with the international environmental standards, adding:

"The project is expected to pave the way for energizing private sector involvement in the downstream of Iraq's energy industry and provide economic and employment opportunities for the people of Iraq, especially in Basrah.

"JICA looks forward to the collaborative efforts made by Iraqi government and the contractor to overcome every challenge to be encountered during project implementation, including the ongoing COVID-19 pandemic.  JICA reaffirms its commitment to making every possible means to support in delivering the project benefits and realizing its effectiveness."

(Source: JICA)

The Cabinet held its weekly meeting on Tuesday under the chairmanship of Prime Minister Mustafa Al-Kadhimi.

The Cabinet discussed the needs of Iraq's health sector, and agreed several measures to expand existing capacity and introduce new services. The measures included:

• Adding additional ward capacity for the treatment of cancer patients at the National Amal Hospital and the National Cancer Centre
• Establishing general nuclear medicine centres in Anbar, Basra, Babylon, Najaf and Nineveh provinces

The Cabinet discussed other policies and agreed to:

• Make a one-off payment in the sum of 75,000 dinars to citizens who receive social security benefits on the occasion of Eid Al-Adha
• Cancel the outstanding debt due from 17,552 families who receive social security support
• Appoint graduates of medical colleges to positions in the health sector
• Refer Al-Khairat Power Station Project to the consortium led by Hyundai. This important project will contribute to increased power generation and support the operation of the Karbala Refinery Project
• Approve a recommendation from the Ministerial Council on Energy in relation to the fluid catalytic cracking (FCC) project at Basra Refinery

The Cabinet reviewed and approved a number of other measures and policies.

(Source: Govt of Iraq)

By Yassir Khudayri, for Open Society Foundations (OSF).

In early October 2019, in Baghdad’s Tahrir Square and in many of Iraq’s other major cities, young Iraqis took the streets, chanting slogans such as “with life and blood we defend you, Iraq.” To those unfamiliar with the specifics of political and social life in the Middle East, where sectarian divisions often trump national identities, this may not have seemed like a big deal.

It may have seemed, in fact, like just one more of the countless mass protests that have engulfed the region over the past decade.

In both respects, however, these observers would be wrong. The chants were a big deal. And the protests, while not entirely unprecedented, were nevertheless a sharp break from the norm. Because, for the first time in recent memory, Iraqis weren’t demanding their rights under the banner of any specific religious or ethnic group, but their rights as Iraqi citizens.

And they weren’t demanding privileges—they were demanding the fall of a system that has worked to keep them apart, and that has been feeding into the pockets of corrupt elites to the detriment of ordinary citizens.

To understand why this embrace of nationality is so important, however, a look into the recent past is necessary. Under Iraq’s current model of ethno-sectarian balancing [paywall], established after the United States-led invasion of 2003, coalition governments hand out ministerial positions and budgets according to the proportion of the country’s sectarian populations—Shiite or Sunni Muslim Arabs, and Kurds.

This has led to staggering corruption in which the elite’s control over government ministries, major enterprises, and media has actively worked to maintain the status quo. Spawned in the aftermath foreign occupation, this form of governance has benefitted few and served as little more than a failed attempt for perpetual ceasefire, rather than a sustainable system of government meeting the needs of the Iraqi people.

Corruption and sectarian favoritism in the public sector have played a major role in entrenching sectarian division among Iraqis and have led to rampant unemployment and lack of access to basic services. Transparency International ranks Iraq as the 18th most corrupt country in the world; according to official figures cited in a report from the Telegraph, since 2004, a remarkable $450 billion in public funds have been unaccounted for. Meanwhile, about a quarter of the country’s young population is unemployed, while access to clean water and electricity is unreliable at best.

This wave of protests—which encompasses multiple sectors of the population—illustrates the rise of a pan-Iraqi movement. Just as importantly, this remains an essentially grassroots-run and leaderless movement. In the same streets that recently staged over a decade of inter-sectarian fighting, Iraqis are now refusing to be torn apart, demanding a universal government for all its citizens, and are willing to face the rain of bullets and tear gas to see it happen. This is unique and its importance should not be understated. It is a rare moment that could build a new bedrock for a country that has been through so much, by the hands of its people.

The international community must acknowledge the magnitude of this movement and rise to its responsibility in ensuring protesters’ rights to call for a better life, and support them in their legitimate demands—but it must tread carefully. States and international groups should learn from past mistakes and refrain from throwing money at the problem or call for new elections in hopes that the country will miraculously jump to its feet and prosper. This has proven to be counterproductive or even disastrous in the past, especially in the Middle East.

What can the international community do, then? As a start, it should use its leverage with the Iraqi government to ensure an immediate halt to the slaughter of peaceful protesters. Since the movement began in October, about 400 protesters have been killed and thousands injured by government forces, and all efforts should prioritize an immediate halt to the onslaught. Further, it should pressure the government to address protesters demands and provide any support in doing so in a way that is consistent with their human rights.

This applies regardless of the resignation of Prime Minister Abdul Mahdi, since this systemic problem transcends who heads the government. The UN Secretary General has uttered harsh words at the Iraqi government’s brutality against its people, while the Arab League’s chief called for “restraint.”

Any systemic change should not be held hostage to constitutional rupture or the loss of any more lives. Change must start now in support of a transition to a new form of governance, which can then build on its own progress. The demands of protesters should be met now, and the international community has a duty to acknowledge them and support the sitting Iraqi government in adopting structural changes for a new system, regardless of who sits in in Baghdad now or in the future.

What is outlined above is necessary, but it will not sufficiently address the matter. There are too many dimensions to resolving this issue than I could possibly explain or understand. But one thing is for certain: The rage that initially drew people to Tahrir Square rapidly turned into a passionate display of popular unity that was once thought impossible, and it does not appear to be slowing down. A generation born into war and ripped apart by tragedy is now rising—and demanding recognition of their common identity.

(Source: The Intercept, under a Creative Commons licence)

JICA to Support Iraq’s Reconstruction and Revitalization through Upgrade of Basrah Refinery

Signing of Japanese ODA Loan Agreement for Iraq

On 16 June, 2019, the Japan International Cooperation Agency (JICA) and the Iraqi Government signed a loan agreement at Ministry of Finance in Baghdad.

The ODA (Official Development Assistance) loan amounting to JPY 110,000 million (approximately USD 1 billion) will be used for Basrah Refinery Upgrading Project. The loan agreement was signed by H.E. Mr. Fuad Mohammed Hussein, Minister of Finance and Masayuki Hirosawa, Chief Representative of JICA Iraq Office, in the presence of H.E. Mr. Hamid Younis Salih, Deputy Minister of Oil and H.E. Mr. Naofumi Hashimoto, Japanese Ambassador to Iraq. This concessional ODA loan aims to support the Government of Iraq in its efforts to reconstruct the country and revitalize its economy.

The loan named “Basrah Refinery Upgrading Project (II)” is the second tranche loan for Basrah Refinery Upgrading Project, one of the mega projects known in the region. For the same project, JICA previously concluded two loan agreements for (i) the engineering services loan in the amount of JPY 2,079 million and (ii) the first tranche loan in the amount of JPY 42,435 million.

The entire project aims to increase the quantity and quality of oil products including gasoline, diesel and kerosene, by installing a new refining plant called Fluid Catalytic Cracking (FCC) Complex in Basrah Refinery, which is one of the biggest oil refineries currently operational in Iraq. It will be implemented by South Refineries Company, Ministry of Oil.

Iraq has the world’s fifth-largest proven oil reserves and is currently OPEC’s second-largest producer. Nevertheless, most of the existing refineries in the country have been shut down or decreased their production capacity, suffered from damages and deterioration in the previous decades of conflicts. Many of the plans to construct new refineries have faced with challenges and delays and are yet to achieve substantial increase of the refining capacity.

On the contrary, the ongoing reconstruction efforts in liberated areas and the revitalization of socio-economic activities across the country have prompted huge demand for fuels, such as gasoline and diesel. As a result, despite being one of the largest oil producers, Iraq has no choice but to import the significant amount of oil products from neighboring countries so as to meet the demand for transport, power generation and industrial production.

Against this backdrop, the project to construct Iraq’s first-ever FCC Complex will increase the volume of the high-value added oil products, promote the transfer of refining technologies from Japan and help save valuable foreign currencies to import huge amount of fuels. The new plant will also reduce sulfur content in the products in accordance with the international environmental standards. Furthermore, the project is expected to pave the way for energizing private sector involvement in the downstream of Iraq’s energy industry and provide economic opportunities for the people of Iraq, especially in Basrah.

The loan is very concessional with the low interest rate and long repayment period: the interest rate of 0.20% and the repayment period of 40 years including 10-year grace period.

(Source: JICA)

Iraq is committed in its efforts to achieve climate security. Mitigation efforts, employing local and international resources, that ensure food and water security are met and are a priority for the government due to them being major effects of climate change. This was stated at the stakeholders consultation on Iraq’s nationally determined contributions to the UNFCCC stakeholders’.

In Collaboration with the Ministry of Health and Environment, the United Nations Development Programme (UNDP) organized a two-day workshop attended by senior-level representatives from the Ministry of Oil, Ministry of Electricity, Ministry of Trade, Ministry of Finance, Ministry of Transportation, Ministry of Housing, Ministry of Agriculture, Ministry of Planning, Ministry of Science and Technology, Ministry of Reconstruction and Municipalities and Baghdad Mayorality. In addition to Leading and research NGOs, including the National Center for Climate Change and the Centre of Earthquake Prediction.

Deputy Minister of Health and Environment, Dr. Jassim Al Fallahi highlighted the progress on Nationally Determined Contributions  (NDCs) that is critical for effective follow up of the implementation of the Climate Agreement signed at the 2015 Paris Summit. Saying: “The sacrifices of the youth that had made Iraq secure today would not be allowed to go in vain. we are committed to redoubling our reconstruction efforts that are fully sustainable. Several Ministries have lined up projects that are designed to reduce emissions from their inception”. Said Mr. Al Fallahi.

UNDP Country Director a.i, Mr. Gerado Noto, said “The collaboration and partnership amongst Iraqi institutions in the development of the NDCs is a clear signal that Iraq is serious in responding to the global call of action, for addressing the cause of climate change”. Adding that: “Environment protection is core to UNDP’s development mandate. UNDP plays a strong role in forging connections between development and environmental sustainability, for achieving the sustainable development goals”.

UNDP is also engaged in supporting Iraq by implementing the first full-size Global Environment Facility GEF project on Catalyzing the Use of Solar Photovoltaic Energy in Iraq. The objective is to reduce Green House Gas emissions, by catalyzing the application of distributed solar power, to meet the energy needs of small businesses, residences, and small-town services.

(Source: UN)

Iraq Sets up National Authority to Mobilize Global Climate Finance, Manage Environment and Climate Change Challenges

On June 2018, Iraq has established a high-powered National Designated Authority to help mobilize global climate funding in support of dealing with pressures imposed by a range of environmental and climate change-related issues.

This was announced by the Iraqi Deputy Minister for Health and Environment, Dr. Jassim Abdul Aziz, at a high-level workshop on Iraq’s Green Climate Fund Readiness held in Amman this month.

With grant assistance from the Green Climate Fund (GCF), the Government of Iraq has embarked on a national readiness programme for a period of two years during 2018-2019.

UNDP Iraq will serve as a delivery partner for this grant assistance that aims to support the Government of Iraq in strengthening the national capacities to effectively access and efficiently manage, track and guide climate financing with particular attention to the requirement of Green Climate Fund (GCF).

Water insecurity, land degradation, desertification, loss of vegetation and biodiversity and salinity form part of the complex challenges that Iraq faces, posing significant obstacles for the country to mount a resilient recovery following decades of conflict.

The Government of Iraq has formulated an economy-wide plan to cut GHG emission by around 14% between 2020 until 2035. However, Iraq is also facing a huge economic challenge as a result of the collapse in the international oil market in 2015 and its very significant impact on the national economy.

Guided by Iraq’s national development plan, policies and priorities, the readiness programme will include the preparatory activities that include establishing a National Designated Authority (NDA) in Iraq under the leadership by the GCF Focal Point.

Strengthening stakeholders’ engagement and effective participation, and assisting Iraq in developing a gender- responsive country programme including climate change adaptation and mitigation priorities are some of the core objectives of the readiness programme.

The accomplishment of readiness activities will lay the foundation for Iraq to kick-start concrete steps towards meeting the need for climate financing in an effective and coordinated way.

The three-day workshop, attended by the Iraqi Ambassador in Jordan (Safia Al Sauhail), the Iraqi deputy minister of Health and Environment Dr. Jassim Al Falahy, and by an inter-ministerial group comprising several heads of Iraqi government institutions, took stock of Iraq’s readiness for GCF and the roles and responsibilities of the associated the National Designated Authority.

Participants at the workshop agreed on the steps to be taken for the implementation of a roadmap for Nationally Determined Contributions consistent with the UN Framework Convention on Climate Change (UNFCCC) guidelines.

(Source: UNDP)

ShaMaran Petroleum has announced its financial and operating results for the three and nine months ended September 30, 2017. (Unless otherwise stated all currency amounts indicated as "$" in this news release are expressed in thousands of United States dollars).

HIGHLIGHTS AND DEVELOPMENTS

Operations

• Oil production on the Atrush Block commenced in July 2017. Atrush is currently producing at approximately 26 thousand barrels of oil per day ("bopd"). In order to address certain production constraints the facilities were shut down in the beginning of October. These constraints have now successfully been resolved.
• One of the four production wells, Atrush 4, ("AT-4") is currently shut in. The well was back-producing drilling fluid lost during drilling operations. In order to not upset the production system it was decided to clean up the well via temporary facilities upon the receipt of a flare permit from the Kurdistan Regional Government ("KRG"). This operation is now planned for Q4 2017.
• In October and November 2017 the Company received payments totalling $2.5 million representing its entitlement share of the $9.7 million in total payments received by the Atrush Non-Government Contractors from the KRG for July and August oil sales from Atrush and reimbursement instalments of the Atrush Exploration Costs receivable. 703 thousand barrels of oil were exported from Atrush for the months of July and August with an average netback price¹ of $35.3 per barrel of oil. Total oil produced and exported from Atrush over the third quarter was 1.3 million barrels resulting in an average of 14.6 thousand barrels per day. The average netback price over the quarter was $36.86 per barrel and the average lifting cost was $8.54 per barrel.
• The Chiya Khere-7 ("CK-7"), which was spudded on September 17, 2017 reached a final depth of 1,861 metres in early November 2017. The reservoir section was encountered approximately 114 metres shallower than prognosis. The well was drilled on time and under budget. Testing and completion of the well will be performed in 2018 to coincide with installation of flow lines between the Production Facility and the Chamanke E location were the well is located. The main objectives of the well are to appraise the commercial potential of the Mus formation, to help reduce the uncertainty in the location of the medium to heavy oil transition zone and to serve as a further producing well.
• In September 2017 an agreement was concluded between the Atrush Non-Government Contractors and the KRG for the sale of Atrush oil whereby the KRG will buy oil exported from the Atrush field by pipeline at the Atrush block boundary based upon the Dated Brent oil price minus approximately $16 for quality discount and all local and international transportation costs. This discount is based on the same principles as other oil sales agreements in the Kurdistan Region of Iraq.
• The Final Completion Certificate for the Atrush Feeder Pipeline ("FCC") was issued on October 31, 2017 which completes the obligation of the Non-Government Contractors to fund the KRG's share of development costs and triggers the commencement of repayment of both the Atrush Feeder Pipeline Cost Loan and the Atrush Development Cost Loan. The first loan repayment instalments are due later in November 2017.
• Following the independence referendum held in Kurdistan on September 25, 2017, operations in the Atrush field in Kurdistan are continuing in a normal, safe and secure manner. Exports from Atrush are continuing via the Kurdistan Export Pipeline system and drilling operations on the CK-7 well are progressing as planned. Nevertheless, events since the referendum suggest an increase in the potential for political instability within the region.

¹ This includes a discount to Dated Brent for oil quality and all local and international transportation costs.

Corporate

• On January 30, 2017 the Company completed the issue of 360 million common shares of ShaMaran on a private placement basis (the "Private Placement") at a price per share of CAD 0.10 (equal to SEK 0.67) which resulted in gross proceeds to the Company of $27.3 million ($26.4 million net of transaction related costs). Zebra Holdings and Investments SARL, Lorito Holdings SARL and Lundin Petroleum BV, the Company's major shareholders, subscribed for 43,463,618 shares, 16,984,621 shares and 17,800,000 shares, respectively, in the Private Placement.
• In February 2017 the Company reported estimated reserves and contingent resources for the Atrush block as of December 31, 2016. Reserves and resource estimates have remained unchanged from those reported for the prior year. Total discovered oil in place in the Atrush Block is a low estimate of 1.5 billion barrels, a best estimate of 2.1 billion barrels and a high estimate of 2.8 billion barrels, with Total Field Proven plus Probable ("2P") Reserves on a property gross basis estimated at 85.1 MMbbl and Total Field Unrisked Best Estimate Contingent Resources ("2C") on a property gross basis estimated at 304 million barrels oil equivalent (MMboe). ^{2 3}

² "MMbbl" means million barrels and "MMboe" means million barrels of oil equivalents. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 million cubic feet ("Mcf") per one barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

³ This estimate of remaining recoverable resources (unrisked) includes contingent resources that have not been adjusted for risk based on the chance of development. It is not an estimate of volumes that may be recovered.

OUTLOOK

Operations

The Shaw Group Inc. (NYSE: SHAW) has announced that it has been awarded a contract by the South Refineries Company, which is part of the Republic of Iraq’s Ministry of Oil, to provide a feasibility study for the rehabilitation of its 140,000 barrels per day refinery in Basra, Iraq.

The study will assess the current condition of the refinery and estimate the engineering, equipment supply and construction services required to improve its operation.

The study is funded by the United States Trade and Development Agency (USTDA) through a grant to the South Refineries Company. This is the first grant the agency has provided directly to an Iraqi grantee, marking the USTDA’s support of Iraq’s long-term economic development.

“This study will help to promote the development of Iraq’s oil business and modernize vital facilities,” said James Glass, president of Shaw’s Energy & Chemicals Group. “This is Shaw’s fourth refining project in Iraq, reinforcing our continuing commitment to the Middle East region.”

In Iraq, Shaw is conducting feasibility studies and front end engineering and design (FEED) for two grassroots 150,000 barrels per day refineries near the cities of Maissan and Kirkuk, for the Republic of Iraq’s Ministry of Oil.

The FEED work includes all process units, offsite facilities and utilities for both refineries. Through a fluidized catalytic cracking alliance, Shaw, with its partner, Axens, are providing a process design package for a 30,000 barrels per day residual fluidized catalytic cracking (RFCC) unit at Midland Refineries Company’s refinery in Daura.

The undisclosed value of the contract will be included in Shaw's Energy & Chemicals segment’s backlog of unfilled orders in the first quarter of fiscal year 2012.

UOP LLC, a Honeywell (NYSE: HON) company, announced that its technology has been selected for a new transportation fuel refinery to be built in Iraq.

The State Company for Oil Projects (SCOP), under the Ministry of Oil for Iraq, has selected Honeywell’s UOP to provide key technologies to process 300,000 barrels per day (bpd) of domestic crude oil into gasoline and diesel fuel at the new facility in Nassiriya, Iraq.

Honeywell’s UOP previously received awards in 2010 from South Refineries Company and North Refineries Company for new refineries in Maissan [Maysan, Missan] and Kirkuk, Iraq, each rated at 150,000 bpd.

“We are pleased to be working with the SCOP again as Iraq focuses on doubling its oil refining capacity,” said Rajeev Gautam, president and CEO of UOP. “The high yields delivered by our technologies combined with our methodology for process unit integration and optimization will enable SCOP to produce the maximum yields of high-quality gasoline and diesel product while also maximizing the economic value of the project.”

Refining capacity in Iraq is expected to reach 1.6 million bpd by 2017, more than two times the capacity of its existing refineries. This capacity is expected to double again by 2030, driven by increased transportation fuel demand within Iraq.

UOP will provide reforming, isomerization, fluid catalytic cracking (FCC) and selective hydrotreating technologies. As part of the overall technology package, UOP will provide basic engineering, technology licenses, catalysts and specialty equipment for the new refinery. Design will begin in the second quarter of 2011. SCOP has made the implementation of this new refinery a priority and is currently offering the project as an opportunity to potential investors.

The specific UOP technologies to be provided to SCOP include the CCR Platforming™ and Penex™ processes, which are used to produce high-octane gasoline, as well as the UOP FCC and Selectfining™ technologies, which enable high-yield production of ultra-low sulfur diesel fuel and gasoline.

In 2010, Honeywell opened a full-service office in Baghdad and has plans to open other offices in southern and northern Iraq over the next few years. Honeywell’s Baghdad office focuses on supplying technology solutions, including process automation equipment, to Iraq’s oil and gas industry.