PM Al-Sudani orders operation of Karbala Oil Refinery by 2025
Shafaq News/ On Sunday, Iraqi Prime Minister Mohammed Shia Al-Sudani directed the commencement of operations at the Karbala Oil Refinery starting in early 2025.
This directive was issued during a special meeting he chaired to review and discuss the continuation of operations at the refinery, according to a statement from the PM's media office.
“The meeting addressed the handover and operational mechanisms for the Karbala Oil Refinery following the completion of construction by the Korean company JV. Discussions emphasized ensuring the refinery operates at full capacity. The refinery is expected to contribute 17% of Iraq’s domestic production of oil derivatives,” as per the statement.
The Prime Minister also directed the formation of “a committee within the Ministry of Oil to establish an operational framework for the refinery starting next year. He emphasized the strategic importance of the project, noting that it is the first refinery in Iraq to utilize modern technologies.”
The Karbala Oil Refinery has been undergoing intensive maintenance work, which has rendered it out of service since September 25. The refinery has an estimated production capacity of around 150,000 bpd.
Iraq aims to increase its crude oil production and direct a significant portion of this production to refining facilities, which are currently being upgraded to boost their capacities, aiming to achieve self-sufficiency in gasoline as soon as possible.
Iraq plans to raise its crude oil refining capacity to 1.14 million bpd by adding new units to existing refineries. The country announced the opening of the Karbala Oil Refinery with a production capacity of up to 150,000 bpd in April 2023.
In June 2024, the Iraqi Ministry of Oil confirmed its full commitment to compensating for any surplus in production since the beginning of 2024. This comes after secondary sources estimated that Baghdad exceeded its assigned quota by approximately 203,000 barrels in May.
