The US-based Honeywell UOP will supply technology and equipment for a new Iraqi refinery in the Northern Kirkuk Governorate, officials have said.

The refinery, which will be built by Kurdistan-based Rania Group, will cost around $2 billion and it will have a production capacity of 70,000 barrels-per-day (bpd), Shafaq News Agency said, quoting Ali Hammadi, investment advisor to the Kirkuk Governor.

“The project is valued at $2 billion and will take between two and three years to complete,” he said, adding that construction would begin after the Company is handed over the project site in Southwest Kirkuk.

The agency quoted Jalal Haji Ahmed, head of Rania Energy and Oil, as saying the facility would be built to international standardsm and use advanced, environmentally friendly technology.

According to officials, the project is part of the Iraqi Oil Ministry’s plan to increase refining capacity, cut reliance on imports, and potentially export surplus products.

Kirkuk Governor Rebwar Taha said after signing the contract last week that the refinery had received approvals from Prime Minister Mohammed Al-Sudani and the Oil Ministry.

“This is Kirkuk’s first investment contract for a refinery. It will provide jobs and improve the local fuel supply,” he said.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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