Prime Minister Mohammed Shia al-Sudani announced on Saturday the beginning of the Shinafiyah refinery expansion in Al Diwaniyah in southern Iraq.
During his visit to the province, the PM confirmed the government will to develop the oil sector and complete the projects that meet the needs of the people.
The Iraqi News Agency cited Sudani as saying: “Designs have been put in place for the expansion of Shinafiyah refinery, which will increase the production capacity of the refinery from 20,000 to 90,000 barrels per day, in addition to a refining unit with a capacity of 70,000 barrels per day.”
He stressed that he directed that production be compatible with environmental requirements.
The Prime Minister stated that this increase would help in reducing the import of gasoline and gas oil, and the provision of surplus quantities of liquid gas and fuel oil products, which have a significant economic return.
“The project will also provide up to 3,000 job opportunities, to employ local manpower,” he added.
According to shipping data, Iraq also increased exports to Europe by more than 20 percent in the past five months.
European refiners have found themselves oversupplied with crude as an expected shortage owing to the looming EU ban on Russian oil has yet to materialize.
Iraq, OPEC’s second-largest producer behind Saudi Arabia, has been pumping about 4,652,000 barrels of crude a day this year. It plans to increase oil production to eight million barrels per day (BPD) by the end of 2027.