BAGHDAD- Iraq has signed an initial deal with Swedish SEAB and Turkey's Limak to build a 70,000-barrels-per-day oil refinery near the northern city of Mosul, the oil ministry said on Thursday.

The refinery will use the heavy crude oil from the northern Qayyara oilfield to produce fuels, said oil ministry officials, without giving an estimated cost of the project.

(Reporting by Ahmed Rasheed; Editing by Jon Boyle) ((ahmed.rasheed@thomsonreuters.com; +964-7901-947-131; Reuters Messaging: ahmed.rasheed.thomsonreuters.com@thomsonreuters.net))