Karbala refinery deal could be downstream milestone

The Oil Ministry has entered an exclusive 6-month negotiating window with the Refinery of Karbala Corporation for a $6.5 billion deal that would boost Iraq’s lagging downstream sector.
The Daura Refinery was built in 1955. Iraq is hoping to get foreign investment in new refineries to expand production around the country. (BEN LANDO/Iraq Oil Report)

The Oil Ministry has given a start-up refinery company six months to finalize a $6.5 billion refinery project in Karbala, offering sweetened terms in an ongoing effort to build a downstream oil sector that can meet Iraq’s growing fuel demands.

If a deal is reached, it would mark the first foreign investor in the country's fledgling refining sector.

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