A number of German investment companies applied for the establishment of a giant oil refinery in the province of Dhi Qar, and a capacity of up to 150 thousand barrels per day at a time the spokesman Ali al-Dabbagh announced on the government approval on the agreement of principles with Shell to invest the associated gas with oil extraction in the province of Basra, in partnership With the South Oil Company ..
In the meantime, the Oil Minister Hussain al-Shahristani said that Iraq has a fiscal surplus up to 60 billion dollars, indicating his willingness to support any of the investment projects from the oil ministry revenues..
This move comes at a time when Iraq is seeking to develop oil industry in general, demonstrated by the tireless efforts taken by the government to invite the oil giant investment companies to work in Iraq, and that was reflected recently with a giant Chinese company to develop Al Ahdab oil field, as well other investments that might raise Iraqi oil exports during the coming period ..
The Chairman of the Investment Authority in Dhi Qar, Mr. Kazem Ismail Aboudi clarified that a number of German firms submitted their offers to set up oil refinery in the province with a capacity of 150 thousand barrels a day, adding that those companies will invest the oil refinery in the light of an agreement to purchase crude oil from the Iraqi government with a reduction of one dollar for barrel less than the global market price ,indicating that the company's right to sell its product inside and outside Iraq, and Ismail also said that the body aiming to develop the oil industry and signed an agreements with UAE company and Iranian expertise to establish an oil refinery with production capacity of 350 thousand barrels per day .. He pointed out that the process of obtaining permits to start implementation of the project in the coming months.
According to press reports that the Oil Russian Lukoil and American Conoco Phillips, have announced entering their own coalition to win the contract of extracting oil from the West Qurna oilfield II, and Lukoil won a contract in the West Qurna oilfield, which contains 6 billion barrels of oil before 2003.
For his part, the government spokesman Ali al-Dabbagh said the cabinet approved on the prime agreement to extract gas by Royal Dutch Shell company, jointly with the South Oil Company.
He said that Shell submitted a proposal to the Iraqi government to develop natural gas resources in Iraq and plans to supply the domestic market and export .. He said that Iraq, which possesses the third largest oil reserves in the world certainly will give priority to the development of gas reserves in the South that has become a major supplier to Europe.
Iraq has been heavily dependent on oil imports, which constitute approximately 89% of total revenues.. and importing now between 2.5-3 million barrels per day, and has the third largest oil reserves in the world, and the second largest reserves of natural gas in the world ..
Economists expected to increase the volume of oil investment in Iraq in the coming period, especially with the rising demand for crude oil in international markets, stressing the need of the government to seek with the oil ministry to increase the volume of oil production, which provides good financial returns to Iraq.(Iraq Directory)