The Iraq oil ministry has signed a contract with Rania International Company to construct a oil refinery, with 70,000-barrels-per-day capacity, near the northern city of Kirkuk.
Ranya International, a company based in the semi-autonomous Kurdistan region, will build the refinery, which will produce oil products including the high octane gasoline and the other products.
Iraqi Oil Minister Jabbar Ali Hussein Al-Luiebi said: "The construction of the refinery represents the first step to invest in the refining sector and produce enough oil derivatives to cover all the local need in Kirkuk and the nearby provinces."
The country is seeking to develop the oil industry in Kirkuk by implementing development projects; rehabilitate the oil fields, facilities and infrastructure; and upgrade the oil pipeline projects, Al-Luiebi added.
Iraqi Oil Ministry counselor Deyaa Jaafar said that the ministry plans to boost the national oil production capacity through projects and strategic plans to establish a number of investment refineries in the provinces of Nineveh, Anbar, Dhi Qar and other places.
The north refineries company director general Kassim Abd Al-Rahman said that Kirkuk refinery project preparations was done in compliance with the latest international standards.
In January, the Iraqi oil ministry has revealed its intentions to construct an oil refinery with a capacity of 300,000 barrels per day (bpd) at Port Fao with the help of two Chinese companies.
The two 150,000bpd capacity oil refineries are planned to be built in the city of Nasiriyaand, in the Al Anbar Governorate.
Image: Officials from Rania and representatives from Iraq during the refinery contraction contract signing ceremony. Photo: courtesy of Iraq Ministry of Oil.