Hyundai Engineering & Construction has won a $6.4 billion contract from Iraq’s State Company for Oil (SCOP); the contract is for engineering, procurement and construction for a 140,000-barre per day Karbala refinery.
SCOP has assigned French oil and gas services group Technip S A to provide the project management consultancy services for the refinery.
Iraq has 13 refineries whose combined crude processing capacity reaches 886,000 barrels per day. Iraq mainly depends on its three largest refineries at Basra, Daura and Baji to meet approximately 75% of its oil demand. The rest of refineries are small and have operational difficulties.
Given its limited access to refined petroleum, Iraqi government has to import refined petroleum and it costs about $6 billion per year. Therefore, Iraq plans to build 4 refineries in Karbala, Nasiriya, Missan and Kirkurk in order to reduce its dependency on imports, these new projects will have a joint capacity of 740,000 barrels