Erbil Refinery

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Owned by the KAR Group, Erbil refinery is the first major refinery in the northern Kurdistan region and the first private sector refinery in Iraq. It received its first oil in 2009. The oil is transported via pipeline from the processing station at the Khurmala Dome field.[1] Feedstock for the Erbil refinery comes from the disputed Kirkuk field.[2]

The refinery project is a key part of expansion plans in the Kurdistan region in order to absorb increasing production levels under the Kurdistan Regional Government (KRG).[3] The UK's Financial Times described the project as a "symbol of private, local investment in Kurdistan - and of the region's ambitions."[4]

Construction originally began on the refinery in 2005 under a contract between the Iraqi Ministry of Oil and the Iraqi Ministry of Industry and Minerals. However following delays and budget difficulties, the KRG intervened in late 2008 and awarded the construction contract to the KAR Group.[5]

Capacity

According to the KAR Group, the complex had an initial capacity of 20,000 barrels per day (bpd).[6]

In late 2011 the refinery was processing 40,000 bpd of crude, but following an expansion plan was expecting to nearly triple the figure to 110,000 bpd by late 2012. KAR founder Baz Karim estimated that once the expansion is complete, the refinery will be able to cater for close to 80 percent of local needs.[7]

References

  1. "Erbil Refinery" KAR Group, retrieved 15 January 2013.
  2. "KRG oil deals buoyed by refinery plan" Iraq Oil Report, 29 March 2012.
  3. "KRG oil deals buoyed by refinery plan" Iraq Oil Report, 29 March 2012.
  4. "Refining: Domestic processing capacity is rising quickly" Financial Times, 7 December 2011.
  5. "Erbil Refinery" KAR Group, retrieved 15 January 2013.
  6. "Erbil Refinery" KAR Group, retrieved 15 January 2013.
  7. "Refining: Domestic processing capacity is rising quickly" Financial Times, 7 December 2011.