iraq oil refineries status of existing and proposed …
TRANSCRIPT
IRAQ OIL REFINERIES
STATUS OF EXISTING
AND PROPOSED
REFINERIES
2
Content
1. Existing operation and potential page 3
2. Major oil refineries page 5
2.1. Basra oil refinery page 5
2.2. Baiji North and Salahedden refinery page 9
2.3. Daura refinery page 14
3. Proposed refineries page 19
4. Minor refineries page 2
3
Iraqi Oil Refineries 1- Existing and proposed oil refineries in Iraq
Existing and potential
In summary Iraq has a 4 major and 8 minor oil refineries. The nameplate crude processing
capacities of each are listed in the table below:
Summary of Iraq`s nameplate oil refining capacity
Oil Refinery Nameplate crude refining capacity (Barrels
per Day)
Major: Basra
Baiji :
-North -Salaheddin Daura
170,000
150,000 140,000 100,000
Sub total 560,000
Minor: Kirkuk Nasiriyah Haditha Simawa Synaya
Meisan Najaf Qayarah
30,000 30,000 14,000 20,000 30,000 10,000 20,000
4,000
Sub total 158,000
Current Total 718,000
New capacity: Proposed Kerbala Meisan Nassyria
140,000
150,000
300,000
Subtotal 490,000
Potential Total 1,208,000
All Iraqi`s major refineries suffer through disrepair and war damage in not being able to refine
crude to their nameplate capacities nor by being able to produce products to specification that their
original design intended. All represent opportunities for refurbishment to alleviate the current state
of disrepair to achieve nameplate capacity. Following this modernization programs will be required
to meet current international standards for refined products and acceptable health, safety and
environmental standards. We have outlined each major refinery`s potential refurbishment and
modernization programs required for each in the body of the report.
It is also felt that Iraq will require in the medium term 1 new centrally located major
refinery of capacity (1x 140,000 +1 x 150,000 + 1 x 300,000) BPSD to satisfy projected
growth in domestic demand. The location of all refineries in Iraq is shown in the
illustration below.
4
Locations of Iraq's Oil Refineries
It is difficult to assess the refurbishment and modification requirements of the minor
refineries. The Synaya (Baiji) Meisan, Kirkuk, Simawa and existing Nassyria units are in
fact topping plants, these are the first in a series of a total of 8 small refineries that Iraq
intends to locate at various points around the country to ensure that domestic demand for
refined products will always be met form locally sourced refined products.
A topping plant is a small (100 - 10,000 barrel per day) refinery, usually of modular
construction, for transportability, that can take a variety of crudes to produce straight run
gasoline, diesel and fuel oil. Actual product specification and mix depends on quality of
crude used to feed it.
In this section we describe the existing operation – that is the ownership, construction history,
capacity, unit operations, product specification and environmental concerns – associated with each
major refinery; along with the opportunity associated with each – this is refurbishment needs,
modernization requirements and their associate cost and timing
Opportunity
The business opportunity associated with Iraq`s refinery sector in summarized in the table below
Iraqi`s refinery sector – summary of business opportunity
5
Name Work scope
Total Capital Investment Projected (Million $)
Time Frame (year)
Major Refineries: 1- Basra 2- Baiji 3- Daura 4- Proposed 5- Karbala,
Mesan Refinery 6- Nasria Refinery
Refurbishment and Modernization Refurbishment and Modernization Refurbishment and Modernization New – build
1000 1500 800 2000 2000
6000
2-5 2-5 2-5 2-5
Sub total 13300
Minor Refineries
New Topping Plants New – build 200 2-5
Sub total
Total 13500
Full Detail of these investments can be found in the body of this report. These represent the total
estimated investment contemplated for full modernization of Iraq`s refinery sector in order that it can
meet international products quality and health, safety and environmental standards.
2- Major Oil Refineries
Iraq has three major existing refineries and plans to build a new facilities in the central and southern
region of the country.
2-1 Basra Oil Refinery
Basra is Iraqi`s second oldest refinery and is located in the south.
Existing Operations
The operations of the Basra oil refinery are summarized in the table below.
Basra Oil Refinery Existing Operations Summery
Parameter Value
6
Construction and Ownership Constructed Start – up year Current owner Original Owner Main Contractor
1970 1973
South Refineries Company
Techno Export (Czech)
Operations Overall Name Plate Capacity (barrels per day) Actual Capacity (Barrels Per day) Crude Feed Gravity (˚API)
170,000 BPSD (60,000 – 80,000) BPSD
Unit Operations Number Total Capacity
(Barrels Per day) Status
Large Crude Distillation Unit 2 140,000 Operating Near Capacity
Small Crude Distillation Unit 3 30,000 Operating Near Capacity
Hydro-Desulphurization 1 25,000 Out Of Action
Reformers 2 10,000 Operating Near Capacity
Lube Oil Blending 2 125,000 Ton/Year 1 unit Out of Action
Isomerization 1 10,000 Planned
Water treatment Plant 1 Only Partially Operational
Power plant - - Sourced from National Grid
The product capacities and qualities achieved in Basra refinery are provided in the table below.
Basra Oil Refinery Product Capacities and Quality
Products Design Capacity (Tones per
Year)
Quality
Parameter Design 1998305
Fuel Oil 2,770,000 Sulphur (%) 4 – 4.5 4.0
Gas Oil 1,230,000 Sulphur (%) 1 – 1.2 1.0
Kerosene and Jet Fuel 1,150,000 Sulphur (ppm wt) Smoke Point (mm) Freezing Point(˚C)
1 – 10 27 -55
0.21
Gasoline 770,000 Octane Number (RON) 81(84306) 78
Naphtha (Reformate) 386,000 Octane Number (RON) 88 and 91
Liquid Petroleum Gas 112,000 Sulphur (ppm wt) 100 – 200 72.5
7
Lube Oils 100,000 Sulphur (%) VI Colour Pour Point
0.7 – 0.85 95 3.0(1.0308)
-6
The Basra refinery, which came on stream in 1973, house two identical crude distillation unit with
capacities of 70,000 barrel per day each, plus three small, 10,000 barrel per day crude distillers.
It thus has a nominal capacity of 170,000 barrel per day.
The plant was virtually destroyed in 1980 – 1981, at the start of war with Iran, and again during the
Gulf war, but was repaired and rehabilitated each time. It had to be repaired
again more recently, following an American air strike that destroyed its distribution manifold in
December 1998.
The refinery now operates at close to (60 – 80) thousand PSD (60 % of design capacity) despite
poor maintenance and a shortage of materials and spare parts.
The refinery was designed to produce fuel oil, gas oil, kerosene and jet fuel, gasoline, naphtha, LPG
and lube oils. Its unit operations include:
• Gas oil hydro – desulphurization unit: this is out of operation , because it was stripped of
essential equipment, as a result the refinery`s untreated gas oil product has a sulphur
content 0.9 – 1.0 %
• Reformers: two reformers are installed and are operating at the plant. One produces
reformate with an octane number of 82, the second produces reformate with an octane
number if 88 and 89.
• Lube oil blender: one of the refinery`s two lube oil blending units was brought back into
operation in 1996, and there are plans for rehabilitating the second.
• Isomerisation Unit: there are plans for installing an isomerisation unit for the treatment of
light naphtha to raise octane ratings and minimize TEL in the gasoline. (Project under
execution)
• Water treatment: only the first stage of waste water treatment plant and the mechanical oil
skimmers function properly, so water and oil pumps are in operation. Completion of stage
two and three of the water treatment plants has been held up by the failure of the necessary
materials and equipment to arrive, due to contracts being kept on hold at the UN.
Consequently, a lake of waste oil has accumulated close to refinery over the past four
years. In addition, the refinery has to burn a lot of gas and LPG due to lack of cooling
capacity to condense those components, which is also environmentally damaging.
• Power plant; the refinery does not have its own power plant, and operations are frequently
disrupted by the power shortages, especially during the winter.
8
Opportunity
The Basra Refinery based on to its current status offers the potential for number of refurbishment
projects to rejuvenate its existing operation in order that it can meet the product qualities intended
in its original design along with minimum acceptable health, safety and environmental standards. In
addition there are a number of modernization projects that could be expected international products
quality requirement as well as international health, safety and international standards and to be
upgraded in its products specification to meet euro 3 and euro 4 standards.
The projects that would be required for the Basra Refinery along with their rationale, timeframe and
estimated cost are provided in the table below.
Basra Refinery Refurbishment and Modernization Projects
Projects Rationale
Time Frame (Years)
309
Cost Estimate
(Million $)
Refurbishment Hydro – Desulphurization Unit
Rebuild of existing plant order that
acceptable gas oil product specification can
be met
2 – 3 50
Water Treatment
Completion of Water Treatment Plant to
Achieve international standard for disposal
water 2 20
Power generation Unit
New – Build power generation plant to end
dependency on power from national grid in
order to improve overall plant reliability
and efficiency 2 – 3 40
Lube Oil Blender Rehabilitation of second oil blender 2 10
General Upgrade
Refurbishment if all existing unit, in
particular cooling units, to achieve
minimum acceptable HSE standards 2 – 3 90
Subtotal 210
Modernization Isomerisation Unit
New – build isomerisation Unit to improve
octane rating of gasoline produces by the
refinery
2 – 3 60
Boiler Feed Water Plant Plant to improve treated water for existing
on site boiler 2 10
Environmental Remediation
Recovery of waste oil discharged in the
refinery`s vicinity and associated cleanup.
in addition the acceptability residuum in to
disposal wells would be reviewed 3 – 5 30
Hydrocracker Unit
New – build hydrocracker to improve the
recovery of gasoline and other light
products 3 – 5 650
Alkylation Unit New – Build Alkylation unit designed to
take gaseous products from the
hydrocracker to improve gasoline yield 3 – 5 40
Subtotal 790
Total 1000
9
A total investment of $ 1000 Million is anticipated as being required the Basra refinery up to
international product quality and health, safety and environmental standards and upgrade it to euro
3 and euro 4 standard
2-2 Baiji – North and Salahedden
The Baiji Refinery complex is Iraqi`s latest and is located in northern Iraq.
Existing Operation
the operation of the Baiji – North and Salahedden oil refinery complex are summarized in
the table below
Baiji – North and Salahedden Oil Refinery Complex Existing Operations Summery
Parameter Value
Construction and Ownership
constructed
Start – up year Current Owner Original Owner Main Contractor
North 1980 – 1984 Salahedden Lube Oil plant 1982 – 1986 North Refinery Company North: - Chiyoda (Japan) Salahedden: Techno export(Czech) Mont invest(Yugoslav) Lube
Oil plant: Technip (France) and Techno Export (Czech) and
GAMA group (Turkey)
Operation Overall Name Plate capacity (barrels per day) Actual Capacity (barrels per day) Crude Feed Gravity (˚API)
290,000 140,000
Bai Hassan (34) and Jambur (38)
Unit Operation Number Total Capacity
(barrel per day) Status
North Crude Distillation Unit 1 150,000 Out of Action
Salahedden Crude Distillation Unit 2 140,000 Operation Near Capacity
Vacuum Distillation Unit 1 Out of Action
Hydro cracker 1 75,000 Out of Action
Reformers (UOP Technology) 3 15,000 Operation Near Capacity
Lube Oil Blending 2 250,000 Ton/Year 1 unit out of action
Bitumen 1 Operational
Isomerisation 1 20,000 Planned
Water Treatment Plant 1 180,000311 Capacity Limited
Power Plant - Sourced From National Grid
10
The product capacities and qualities achieved in Baiji – north and Salahedden oil refinery complex
are provided in the table below.
Baiji – North and Salahedden Oil Refinery complex product Capacities and Qualities
Products Design Capacity 312
(Tones per Year)
Quality
Parameter Design 1998
Fuel Oil 5,540,000 Sulphur (%) 5.0 4.0
Gas Oil 2,460,000 Sulphur (%) 1 – 1.2(0.1314) 1.0
Kerosene and Jet Fuel 2,300,000 Sulphur (ppm wt) Smoke Point (mm) Freezing Point (˚C)
1 – 10 26 -55
0.21
Capacities of hydrocracker, reformers, lube oil blending, isomerisation and water treatment
units are estimates. This is requirement for refinery complex operating at full capacity; current capacity is no more
than 60,000 barrels per day. Capacities are estimates and are for all units operational.
These are values actually being achieved in 1998. This would be after implementation of hydro-desulphurization project.
Products Design Capacity (Tones per Year)
Quality
Parameter Design 1998
Gasoline 1,310,000 Octane Number (RON) 81(84315) 78
Naphtha (Reformate) 772,000 Octane Number (RON) 75 and 76 91
Liquid Petroleum Gas 190,000 Sulphur (ppm wt) 4 – 10 725
Lube Oil 150,000 Sulphur (%) VI Colour Pour Point
0.7 – 085 95
3.0(1.0316) -
6
The Baiji - North and Salahedden oil refinery complex is Iraq's largest and newest refinery.
It came on stream in phases during the 1980s; the North refinery was completed in 1980 and
Salahedden in 1986.
In total it houses three crude distillation units, the North unit has a capacity of 150,000
barrel per day whilst Salahedden comprises 2 separate 70,000 barrel per day units. It thus has
a nominal capacity of 290,000 barrel per day. At present the North unit is out of action
restricting production to around half of installed capacity. The Baiji refinery complex was
originally designed to function as a sophisticated catalytic conversion complex. As a result
of spares shortages and war damage it has been converted in to a simple hydro-skimming
operation. It includes a vacuum distillation unit and hydro – cracking unit are currently out
of operation following cannibalization to maintain other refinery operations.
11
The complex was attacked during the Gulf war by heavy allied air attacks. Iraqi officials
estimated that 80% of the refinery was either destroyed or incapacitated by the raid.
Subsequently the complex has been rebuilt to achieve today's production levels. The complex
covers a total of twelve square miles and includes 180 crude and product storage tanks, 70
of which are in a state of disrepair.
The complex is currently geared towards the production of middle distillates, such as diesel
and gas oil, only two residuum upgrading operations are included in its design: lube oil plant
and bitumen plant. The Sulphur content of the middle distillates is excessive, exceeding
normally accepted limits by a wide margin. This is due to the inefficiency of the current
hydro-skimming process; lack of spares for the hydrogen compressors is forcing restrictions.
The refinery was designed to produce fuel oil, gas oil, kerosene, jet fuel, gasoline, naphtha,
LPG and lube oils. Its unit operations include:
• Vacuum Distillation Unit: this was included in the Complex's original design to
improve recovery of light ends products such as gasoline. This is currently out of
action.
• Hydro Cracker: this 75,000 barrel per day unit was originally installed to crack
residuum from the Atmospheric distillation units in order to achieve a significant
improvement in light ends products recovery. The Unit is currently out of action.
• Reformers: three reformers - two use semi regenerative catalysts - are installed and
are operating at the plant. One produces semi regenerative unit
Produces reformats with an octane number of 90 and 91 RON, the second produces
reformate of 70 through 75 RON, and the third unit’s reformate specification is 90 and 91
RON .
• Lube Oil Blenders : one of the refinery’s two lube oil blending units is operational ,
and there are plans for rehabilitating the second .
• Isomerisatiom Unit : there are plans for installing an Isomerisation unit for the
treatment of light naphtha to raise octane ratings and minimize TEL in the gasoline
( project is under Construction ) .
• Bitumen plant: a repair programm has been proposed for this propane deasphalting
unit .
• Water Treatment : The waste water treatment plant is significantly capacity limited
through lack of spare parts and design constraints . It is currently able to process no
more than 60,000 barrel per day of waste water this compares with the requirement
to process 180,000 barrel per day should the refinery reach its full operating capacity
.
12
As with the other refineries in Iraq waste oil has accumulated close to the refinery in
specially dug pits , this create problems not just through its hydrocarbon content but
also due to the fact that it tends to be highly sulphurous. The refinery contributes
significantly to the pollution of the Tigris through discharge of its sulphurous
wastewater via a specially constructed canal in to the river.
• Power Plant: the refinery does not have its own power plant, and operations are
frequently disrupted by power shortages, especially during the winter.
Opportunity
The Baiji – North and Salahedden oil refinery complex based on its current status offers
the potential for a number of refurbishment projects to rejuvenate its existing operations
in order that it can meet the product qualities intended in its original design along with
minimum acceptable health , safety and environmental standards, In addition there are a
number of modernization projects that could be executed international product quality
requirements as well as international health , safety and environmental standards .
The projects that would be required for the Baiji – North and Salahedden oil refinery
complex along with their rationale, timeframe and estimated cost are provided in the
table below.
Baiji – North and Salahedden Oil Refinery Complex Refurbishment and
Modernization Projects.
Project Rationale Time Frame
(Year)
Cost Estimate(Million$)
Refurbishment
Fluid catalytic
Rebuild of existing
plant, including the
Hydrocracker , in
order to improve
Project Tender for
feasibility study for
30,000 BPSD
F.C.C Unit has
been announced
2-3
600
13
Water Treatment Completion and upgrade of water Treatment Plant to
achieve higher capacity and international standard
for disposal water.
2 25
Vacuum Distillation
Unit
Refurbishment of Vacuum Distillation unit to
improve the recovery of gasoline and other light
products.
2-3 45
Hydro- Desulphurisation
unit Rebuild of existing plant in order that acceptable
middle distillate Sulphur specification can be met. 2-3 65
Power Generation unit New –build power generation plant to end
dependency on power from the national grid in order
to improve overall plant reliability and efficiency.
2-3 80
Lube oil Blender Rehabilitation of second lube oil blender (Project
and Developments Limited (India ) claim to have a
contract to execute this )
2 50
Bitumen plants Implement refurbishment and repair of this propane
deasphalting unit . 2 10
Tankage Repairs Refurbishment of 70 storage Tanks or Demolition
were redundant . 2-3 30
General Upgrade Refurbishment of all existing units, in particular
cooling units, to achieve minimum acceptable HSE
standards.
2-3 100
Subtotal 850
Modernisation
Isomerisation Unit New-build Isomerisation Unit to improve octane
rating of gasoline produced by the refinery . (Czech
company Technoexport along with BHEL(India)are
thought to have conducted
2-3 75
preliminary work on this )
Boiler Feed Water plant
+Boilers for Salahedden
and north refinery
Plant to provide treated water for existing on site
boilers.
2 80
14
Environmental
Remediation
Recovery of waste oil discharged in the refinery’s
vicinity and associated cleanup In addition the
acceptability of discharging residuum in to disposal
wells would be reviewed .
3-5 50
Alkylation Unit New-build Alkylation unit designed to take gaseous
products from the hydrocracker to improve gasoline
yield
3-5 50
Wax unit New-build wax plant designed to produce 20,000
tonnes per year 5-7 50
Used Lube oil unit New- build plant designed to recover 10,000 tonnes
per year of used lube oil 5-7 40
High Viscosity Lube oil
unit New-build plant designed to produce 150,000 tonnes
per year of high viscosity lube oil 9-10 150
Subtotal 495
Total 1500
A total investment of $ 1500 million is anticipated as required to bring the Baiji – North and
Salahedden oil refinery complex up to international product quality and health, safety and
environmental standards and upgraded to Euro 4 standards.
2-3 Daura
Daura is Iraq’s oldest refinery and is centrally located close to Baghdad.
Existing Operations
The operations of the Daura oil refinery are summarized in the table below.
Daura oil Refinery Existing Operations summary.
15
Parameter Value
Construction and Ownership
Constructed 1954
Start –up Year
Current Owner Middle central Refineries company
Original Owner Iraqi Government
Main Contractor Kelloge US Company
Operations
Overall
Name Plate Capacity (barrels per day) 100,000
Actual Capacity (barrels per day) 70,000
Crude feed Gravity (°API , Wt% Sulphur) Kirkuk Fao (27,2.9) and south Rumaila(34,2.1)
Unit Operations Number Total Capacity (barrels
per day)
Status
Cude Distillation Unit 1 100,000 Operating
70%capacity
Reformers 1 5,000 Operating Near
capacity
Isomerisation Unit 1 7,000 Planned already
contracted with STP
Italy)
Desulphurisation Unit 1 15,000
Lube oil Blending 1 125,000 One unit Out of action
Bitumen 1 Operational
Water Treatment plant 1
Power plant 1 Sourced from
National grid
The product capacities and qualities achieved in the Daura oil refinery are provide in the
table below.
Capacities of reformers, blue oil blending desulphurization and isomerisation units are
estimates
Capacities are estimates and are for all units fully operational.
These are values actually being achieved.
16
Daura oil Refinery product capacities and quality.
Products Design
Capacity
(Tonnes per
year)
Quality
Parameter Design 1998
Fuel Oil 1,800.000 Sulphur (%) 5.0 4.0
Gas Oil 820,000 Sulphur (%) 1-
1.2(0.1)
0.21
Kerosene and Jet
Fuel
750,000 Sulphur (ppm wt)
Smoke point (mm)
Freezing point (°C)
0.1-0.2
27
-55
0.21
Gasoline 436,000 Octane
Number(RON)
81(84) 78
Naphtha
(Reformate)
250,000 Octane Number
(RON)
81(84)
Liquied petroleum
Gas
60,000 Sulphur (ppm wt) 100-2-- 725
Lube oils 50,000 Sulphur (%)
VI
Colour
Pour point
1.0(0.6)
95
3.0(1.05)
-6
The Daura oil refinery is Iraq’s oldest and smallest. It came on stream in 1954 and by western
standards in a deplorable state and if operational in any other country would have probably
ben shutdown due to the high personnel safety risk caused by the state of much of its plant.
It design center on a single atmospheric distillatiom unit, which suffers considerable
downtime through failures and lack of spare parts for pumps and other key items of
equipment.
The complex was attacked during the Gulf war by allied air attacks but suffered spare
damage. Subsequently the complex has been rebuilt to achieve today ُ s production levels.
The refinery ُ s design is based on a simple hydro-skimming operation and is currently geared
towards the production of middle distillates, such as diesel and gas oil, only two residuum
upgrading operations are included in its design : lube oil plant and bitumen plant . The
Sulphur content of the middle distillations is exceeding normally accepted limits by a wide
margin. This is due to the inefficiency of the current hydro skimming process caused by a
general lack of spares.
17
The refinery was designed to produce fuel oil, kerosene and jet fuel, gasoline, naphtha,
LPG and lube oils . Its unit operations include:
• Reformers: 1 reformer is in operation producing reformate with an octane number of
78 RON. This is low and gasoline marketed by the refinery has an octane number of
81 RON, indicating that additives are being used .
• Lube oil Blender , a single lube oil blending unit is operational .
• Isomerisation Unit : there are plans for installing an Isomerisation unit for the
treatment of light naphtha to raise octane ratings and minimize TEL . in the gasoline
( Project was signed lately with STP Italy ) .
• Bitumen plant: a single lube oil blending units is operational.
• Water Treatment : currently the refinery discharges an oil rich waste water stream in
to the Tigris . The waste water treatment plant is capacity limited and requires
refurbishment to be brought up to acceptable standards.
AS with the other refineries in Iraq waste oil has accumulated close to the refinery in
specially dug pits, this creates problem not just through its. Hydrocarbon content but also due
to the fact that it tends to be highly sulphurous.
• Power Plant: the refinery does not have its own power plant, and operations are
frequently disrupted by power shortages, especially during the winter.
Opportunity
The Daura oil refinery based on its-, current status offers the potential for a number of
refurbishment projects to rejuvenate its existing operations in order that it can meet the
product qualities intended in its original design along with minimum acceptable health, safety
and environmental standards. In addition there are a number of modernization projects that
could be executed in the longer term to allow the refinery's operations to meet normally
expected international product quality requirements as well as international health, safety and
environmental standards. The projects that would be required for the Daura oil refinery along
with their rationale, timeframe and estimated cost are provided in the table below.
18
Daura Oil Refinery Refurbishment and Modernization Projects
Project Rationale
Time 325
Frame (Years)
Cost Estimate
(Million $)
Refurbishment Water Treatment
Completion and upgrade of Water
Treatment Plant to achieve higher
capacity and international standard for
disposal water
2 15
Hydro-Desulphurization Unit
Rebuild of existing plant in order that
acceptable middle distillate sulphur specification can be met
2 – 3 50
Power Generation Unit New-build power generation plant to end
dependency on power from the 2 – 3 25
national grid in order to improve overall
plant reliability and efficiency
Lube oil Blender
Rehabilitation of existing Lube Oil
Blender and construction of a
second New-build unit.
2 20
Bitumen Plant Implement refurbishment and repair of
this propane deasphalting unit
2 30
General Upgrade
Refurbishment of all existing units, in
particular cooling units and boilers, to
achieve minimum acceptable HSE
standards
2 – 3 30
Subtotal 128
Modernization
Isomerisation Unit
New-build Isomerisation Unit to improve
octane rating of gasoline produced by the
refinery.
2 – 3 75
Boiler Feed Water Plant /Boiler Plant to provide treated water for
existing on site boilers + New Boiler
2 40
Environmental Remediation
Recovery of waste oil discharged in
the refinery's vicinity and associated
cleanup. In addition the acceptability
of discharging residuum in to disposal
wells would he reviewed
3 – 5 57
Hydrocracker Unit New-build Hydrocracker to improve the
recovery of gasoline and other light end
products 3 – 5 450
Alkylation Unit New-build Alkylation unit designed to
take gaseous products from the
hydrocracker to improve gasoline yield 2-1 5 45
Subtotal 672
Total 800
19
A total investment of $800 Million is anticipated as required to bring the Daura refinery
complex up to international product quality and health, safety and environmental standards
and upgraded to euro 3 and euro 4 standard .
3- Proposed Refineries
The Proposed Refineries are :
a. Karbala Refinery of 140,000 BPSD
b. Meisan Refinery of 150,000 BPSD
c. Nassyria Refinery of 300,000 BPSD
These proposed refineries are to have the following operation units
1. Atmospheric Crude Distillation Unit
2. Vacuum Distillation Unit
3. Fluid Catalytic Cracker
4. Hydrocracker
5. Hydro-Desulphurisation Unit
6. Reformers
7. Lube Oil Blending
8. Bitumen
9. Isomerisation
10. Alkylation Unit
11. Water Treatment Plant
12 .Power Plant
These will be Iraq's newest refineries. The product and unit operations mix we have
proposed above is somewhat speculative but it does tie in with the expectation that heavy
East Baghdad Crude is to be processed. We would also expect the refineries to meet
international standards once it is built so we have selected a products slate that ties in with
that the standards are as per euro 3 or euro 4.
We would expect the refineries to make the best use of modern technology to achieve a
higher light ends product mix than other refineries an Iraq consistent with best
international practice. As such we would expect it to include fluid catalytic cracking,
isomerisation, alkylation, reforming and water treatment that meets acceptable standard
from the start of operations; along with an integrated power system more usual in modem
refinery complexes, elsewhere.
20
Opportunity
The proposed Refineries complex, based on our assessment, represents a considerable
modernization project in its own right. The projects that would be required to construct the
proposed refineries complex are as per attached tender requirement for Meissan refinery
complex as an example.
A total investment of 8,000 million is anticipated on the proposed refineries complex
configuration and capacity selected.
4- Minor Oil Refineries
Iraq has a total of 9 small refineries designed to process up to 27,000 barrel per day of crude.
Existing Operations
As can no doubt be appreciated the visibility of the minor refineries is somewhat less than
that of the Major units: we have summarized what we currently know of their function and
status in the table below.
Minor Refineries operations and Status Summary
Refinery name Capacity (barrels
per day Type and Process Status
Kirkuk 30,000 Topping Partially Operated
Nasoriyah 30,000 Topping Partially Operated
Haditha 14,000 Topping Partially Operated
Baiji 1 (Synia) 30,000 Topping Partially Operated
Meisan 10,000 Topping Partially Operated
Qayarah 4,000 Topping Partially Operated
Samawa 30,000 Topping Partially Operated
Najaf 20,000 Topping Partially Operated
Total 168,000
Opportunity
In terms of an opportunity Iraq has stated that it intends to purchase a further 7 topping
plants and distribute them around the country in order to ensure domestic supply security.
We estimate that the installed cost of such a system could be $20 - 30 Million per unit
requiring a total investment of the order of $140 -210 Million. Our expectation is that work
on the existing major refineries would take precedence over adding these topping units so
they represent a long term opportunity.
Downstream- Refineries – Opportunity
In June 2005 Iran and Iraq agreed to build a 40-Km pipeline to carry Iraqi crude oil from
Iraqi oil fields in the south-west of Basra to a refinery in Abadan in Iran. The refined
products will be then sent back to Iraq to cover local shortages.