Iraq finalizes $8 billion Fao refinery deal

China's CNCEC has signed a contract for the 300,000 bpd refinery. The total price could rise to $20 billion with the construction of a petrochemical plant and power plant.
Iraqi Prime Minister Mohammed Shia al-Sudani (center) oversees the signing of a contract for the Fao refinery complex in Baghdad on May 15, 2024. (Photo credit: Prime Minister's Office)

Iraq has signed a contract with the state-owned China National Chemical Engineering Co. (CNCEC) for a 300,000 barrel per day (bpd) refinery to be built at the Fao depot on the southern coast of Basra.

The Oil Ministry has suffered several false starts in its attempts to build the Fao refinery over the past seven years, but the contract signed in Baghdad on May 15 is a final and binding deal, according to multiple Oil Ministry officials.

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