The Iraqi Oil Ministry announced that it signed a “heads of agreement” with two Turkish and Swedish companies to build a 70,000-barrels-per-day refinery in the Qayara oil field.
Iraq’s state-owned North Refineries Company signed the deal on Thursday with Turkish Limak Holding, and Swedish energy firm SEAB. The agreement, still in initial stages, aims to put forward a “roadmap for an investment contract” for a refinery in Qayara, according to the Iraqi news agency.
Qasim Abdul-Rahman, who serves as the head of Iraq’s North Refineries Company, announced the refinery will be “designed to handle heavy crude oil and turn it into refined petroleum products,” in accordance with “Euro 5” standards.
Qayara is a town located about 80 kilometres south of Mosul. Mosul and surrounding areas were an ISIS stronghold until the group’s defeat in 2017. The heavy clashes to liberate Mosul from ISIS left the surrounding areas completely destroyed and severely damaged the infrastructure, including oil refineries.
Mosul’s 20,000-barrels-per-day refinery for processing heavy crude located in the Qayara field no longer operates. Baghdad has been seeking investors to construct and operate a new 100,000-barrels-per-day refinery in Qayara since 2018.
A spokesperson for SEAB said he expects to sign a final contract with the Ministry within three months. The Ministry statement did not mention the expected cost of the project, nor its execution timeline. Limak Holding and SEAB are expected to submit technical and financial plans to the Ministry before the end of the year.