Iraq’s oil ministry said it signed a deal with a local company to build a 70,000-barrels-per-day oil refinery near Kirkuk.
The agreement was signed with Ranya International Company, a company based in the semi-autonomous Kurdistan region, north and east of Kirkuk, which would be an investor in the refinery, Iraq’s oil ministry said in a statement.
The plant would produce high octane gasoline for cars and other petroleum products, it said, without giving details about the cost.
The minister said the refinery is the first step to boost refined oil production to meet local demand. Meanwhile, it will look at plans to export surplus production after further investments in refineries.
Recently-captured areas of Kirkuk fall under Iraq’s redevelopment plans after a prolonged hold by the Islamic State affected facilities and production capacity.
The refinery contract comes alongside plans to execute several development projects, rehabilitation of the oil fields, facilities and infrastructure and extend the oil pipelines, the ministry said.