02 November 2011
Kirkuk - The Northern Oil Company (NOC) is hindering the construction of a refinery in the oil-rich disputed province of Kirkuk, a local official said Wednesday.

The refinery is one of four projects that the Iraqi Oil Ministry tendered to foreign companies for final designs late October. The four refineries to be located in Kirkuk, Karbala, Nasiriyah and Ammara will have a total capacity of 740,000 bopd.

Iraq exports about 2.5 million barrels of oil each day, but it suffers from a shortage of fuel for local consumption. Refined products have to be imported from neighbouring countries to cover up the shortages. The construction of the four refineries is expected to help the country produce adequate fuel for local use.

Jamal Mawloud, a member of the hydrocarbon committee in Kirkuk province, told AKnews that the NOC has been blocking the progress of the refinery project in the region for two years on grounds that the location of the project is volcanic and near the earthquake zone.

"The construction of the refinery was supposed to start two years ago but has been delayed after the NOC sent letters to Baghdad stressing that the location was volcanic and seismic," Mawloud told AKnews, "but the NOC director was not precise in his letters. There are several specialized committees who visited the area and confirmed its suitability."

Mawloud said a delegation including him and Kirkuk governor will visit Baghdad, after the Eid al-Adha holidays - due next week - to discuss the issue with the Oil Ministry.

Spokesman for the Oil Ministry Assem Jihad told AKnews that the designs of the refineries will be completed in early 2012 and will be reviewed and scrutinized before finally tendering them for construction.

"The refineries will be built to up-to-date standards, with high capacity which will enhance Iraq's oil derivatives production," Jihad said.

Kirkuk exported in October about 460,000 bopd through the Turkish pipeline, Ceihan, to the world markets. The export capacity varies from month to month depending on the security situation in the province. Oil pipelines and installations frequently come under insurgent attacks.

Kirkuk is of multi-ethnic background and is one of the disputed territories between Baghdad and the Kurdistan Regional Government (KRG). The oil wealth is one of the main factors for the tension between the regional and the federal governments. While the KRG is trying to incorporate the province into the semi-autonomous region, Baghdad is trying to extend its control over the oil-rich province.

Kurds claim the province to be historically part of the Kurdistan Region. The province was subjected to an Arabization campaign under the former dictator during which Arabs from other parts of Iraq were urged to resettle in Kirkuk while Kurdish families were forced out of the province.

© SANA (Syria Arab News Agency) 2011