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Iraq extends investment deadline for Nasiriya refinery

27 Nov 2017 15:30 GMT
Iraq extends investment deadline for Nasiriya refinery

London, 27 November (Argus) — Iraq's oil ministry has extended the deadline to invest in constructing the Nasiriya refinery for the second time.

The closing date for investors to purchase bidding documents costing $30,000 has been postponed to 28 December, from 5 November. The last day for submission of investment offers will be 2 February 2018, instead of 21 December. It was originally 12 November.

The refinery was first tendered with a capacity of 300,000 b/d, but the ministry's most recent statements list capacity at 150,000 b/d.

Iraq said on 13 October that Total had expressed interest in the Nasiriya integrated project. This project was initially tendered in 2013 for construction of a refinery alongside development of the field. This project has now been separated. Another project aims to recover associated gas to supply power stations or for export. Oil minister Jabbar al-Luaibi said Chinese state-controlled CNPC has expressed interest in participating in the Nasiriya refinery project.

Iraq has tendered several refineries but the oil ministry has repeatedly postponed deadlines.

Investment interest has been thin with foreign firms concerned the location of some of the plants, far from ports, could result in the domestic market capturing oil product sales completely. This would mean returns on potential investors' funding would depend on the government's ability to pay for products.

The oil ministry last week reopened the 20,000 b/d Siniya refinery in the Salahuddin province.