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Iraq’s Karbala refinery begins trial operations

  • : Crude oil, LPG, Oil products
  • 22/09/25

Iraq has begun pumping crude to its new 140,000 b/d Karbala refinery south of Baghdad, the oil ministry said on Sunday. It marks the start of trial operations at the refinery's production units.

The refinery was previously expected to start receiving crude in October and begin production before the end of the year.

Oil products produced by Karbala will cover local demand and will help reduce refined product imports by an estimated 60pc. Gasoline-producing units have already been completed, including a fluid catalytic cracker and a poly-naphtha unit that will produce gasoline with an octane rating of 95 and 90. The refinery will also produce LPG, jet fuel, gasoil, fuel oil and asphalt — all meeting standards equivalent to European production.

Karbala is Iraq's first new refinery in decades and was initially due on stream in 2018, but the project was beset by delays because of pressure on Iraq's finances, especially during the Covid-19 pandemic when oil prices plummeted. A South Korean consortium led by Hyundai was awarded a $6.4bn contract to construct the refinery back in 2014.


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