The Iraqi Ministry of Oil has invited investors to submit proposals for the construction of an oil refinery in Anbar province, near the city of Haditha, Your Oil and Gas News reported.
The facility has a capacity of 70,000 barrels per day (b/d) and will be constructed on a Build-Own-Operate or a Build-Own-Transfer basis. The deadline for proposals is June 14.
“The country is looking to increase its refined output to 1.5 million barrels per day (mb/d) by 2021, 500,000 b/d of which would be exported. The refinery capacity for 2016 was a total of 900,000 b/d; however, the refinery utilization rate was below 50%, producing 448,900 b/d that year,” the Ministry of Oil recently stated.
Iraq’s current crude output currently stands at about 4.3 mb/d. However, after decades of war and political and economic instability, the country’s downstream sector requires significant investment as the country is reliant on imports to cater to domestic demand.
Building the proposed refinery in Anbar will facilitate the supply of fuel to much of the country’s remote western region.
In January, Iraq announced the construction of a 300,000 b/d refinery at the port of Al-Fao, backed by two Chinese companies. Two further refineries of 150,000 b/d and 100,000 b/d capacity are planned for Nasiriya and Qayara respectively.
Iraq is OPEC’s second-largest oil producer, after Saudi Arabia. Its refining capacities were diminished when Islamic State fighters overran its largest oil processing plant in Baiji, north of Baghdad, in 2014.