Even though Deputy Oil Minister Hamed al-Zobai reported that Iraq is aiming to have 910K b/d in crude processing capacity online by 1Q 2022,analysts believe that the country's refining target will face several challenges.For example,despite plans for a 140K-b/d greenfield refinery in Karbala to come online at the start 2022,the coronavirus pandemic likely delayed the commissioning of the new facility to 2024,according to analysts.Even though the Iraqi Oil Ministry has discussed a 300K-b/d in the Zubair field with Italy's Eni,analysts believe that investors are now seeking projects with economies of scale,such as Saudi Aramco's 400K-b/d Jazan refinery that is part of a wider industrial sector.Wood Mackenzie's Vice President Refining,Chemicals and Oil Markets Alan Gelder said,"The world does not need any more refining capacity.The question becomes who is going to build it [a new refinery in Iraq].It is unlikely to be an oil major unless there is something else in it for them than simply the return on the project."
展开▼
