The Ministry of Oil of Iraq has signed an Implementation agreement for the construction under BOO terms of the Refinery of Karbala with RKC (Refinery of Karbala Corporation Ltd) for an estimated US$6.5 billion.
The new refinery will have a daily capacity of 200,000 barrels of crude oil and will produce high quality, high octane gasoline (regular and premium) as well diesel fuel for the domestic market.
"Karbala Refinery will be located 100km south of Baghdad on a six sq-km plot of land, and the refinery will be biult at an estimated cost of US$ 6.5 billion" said Dean Michael, CEO of Karbala Refinery Corporation.
The Italian company Saipem will provide the processing and the technical aspects of the project.
The refinery with the use the latest available technologies that will ensure almost full conversion of crude to final products in line with new Iraqi laws in refining and the environment.
RKC has committed to commence production in 48 months from the final contract date. When the refinery enters into production it will allow the Ministry of Oil to largely supply the domestic market with better quality gasoline and diesel products.
