The Iraqi Ministry of Oil signed a preliminary agreement with the Emirati Al-Awsat Services Limited Company to build the Dhi Qar refinery for crude oil refining in Nasiriyah, Dhi Qar Governorate, south of Baghdad.

Iraqi Oil Minister Ihsan Abdul-Jabbar said in a press statement today, Thursday, that "the Ministry of Oil has signed a preliminary agreement for a project to build the Dhi Qar investment refinery to refine crude oil with a capacity of 100 thousand barrels per day."

In turn, Hamid Yunus, Undersecretary of the Ministry of Oil, confirmed that the agreement is an important step forward in the development of liquidation activity in Iraq, pointing out that this step comes as a prelude to signing the final investment contract for the Dhi Qar refinery project, with a capacity of 100 thousand barrels per day.
He stated that the project needs to "support the prime minister to proceed with it and encourage investment in the liquidation sector, and that the project will contribute to increasing and raising the rates of production capacity for oil derivatives and fuels for various uses, as well as providing job opportunities for the people of the province."

For his part, Director General of the Iraqi Southern Refineries Company Hussam Wali said that the project is the cornerstone for the construction and development of Iraqi refineries to increase production capacities, indicating that the final signature of the contract for the establishment of the refinery will be after the completion of the economic model of the investment contract and it is hoped that this will take place after three months. It is the period specified in the initial principles agreement that was signed.

While the managing director of the UAE's Middle East Services Ltd., Gao Ju, said that the project is one of the important projects and they are working on completing the last stages to reach the signing of the investment contract for the project.

In turn, spokesman for the Ministry of Oil, Assem Jihad, said that this project is part of the ministry's plans to increase the refining capacity, with the aim of covering the local need through the establishment and establishment of a number of new refineries, indicating the addition of a number of new production units to the existing refineries, as well as improving the quality of the local product.

Jihad stated that the refinery production in Dhi Qar would be according to European specifications and quality of 5 euros and a capacity of 100 thousand barrels per day with the service units and complementary production units.