MoO - Al-Nasiriya Integrated Oil Field and Refinery Development - Dhi Qar Governorate - Project Profile

Iraqi Ministry of Oil (MoO) is undertaking the construction of an integrated oil field and refinery project in Nassiriya, Dhi Qar Governorate, Iraq.

Petroleum Contracts and Licensing Directorate (PCLD) and State Company for Oil Projects (SCOP) are the implementing authorities. MoO established Dhi Qar Oil Company (DQOC) a new company which will also implement the project.

The project involves the development of an oil field along with the construction of a new 300,000 barrel per day (BPD) refinery.

It will include the construction of a Gasoline Atmospheric Residue RFCC Unit, a Diesel Atmospheric Residue RFCC Unit, a Blown Asphalt Production Unit with capacity to process 1,000 tonnes per day, a C3, C4 Olefins Alkylation Unit, a DAO Hydro-Desulphurization Unit, a Gas Sweetening Unit, a Hydrogen Production Unit, an Atmospheric Residue Hydro Desulphurization Unit, a Catalytic Reforming Unit (CCR), a Kerosene Hydro-Desulphurization Unit and a Light Gas Oil Hydro-Desulphurization unit with a capacity of 105,000BPSD with less than 10ppm of sulphur.

It also includes the construction of three tanks with the capacity of 3,000m3, a station to isolate its energy with the capacity of 30,000BPD, buildings for electricity control, management, laboratory and a water desalination station.

In June 2010, Foster Wheeler was awarded the feasibility study and front-end engineering design (FEED) contract.

In June 2011, UOP LLC, a Honeywell company, was selected to provide technologies to process 300,000BPD of domestic crude oil. UOP's scope of the contract includes to provide reforming, isomerization, fluid catalytic cracking (FCC) and selective hydrotreating technologies and also provide basic engineering, technology licenses, catalysts and specialty equipment for the project.

In October 2011, Axens was awarded the Basic Design and License contracts. Axens will supply the process technologies including H-Oil RC technology for the hydroconversion of 52,000 barrels per day (BPSD) of vacuum residue (VR); Prime-D - Gas Oil desulfurization hydrotreater; Prime-K - Kerosene desulfurization hydrotreater with a processing capacity of 24,000BPSD and Butane Isomerization unit with a processing capacity of about 11,900BPSD. In 2012, FEED study for the project was completed.

A total of 52 companies submitted an expression of interest (EoI) for the development of the project. Few of them are JSC Zarubezhneft; China National Petroleum Corporation (CNPC); Brown Energy; Reliance Industries Ltd; OAO Lukoil Holdings; Total SA; JGC Corporation and Tonen General consortium; Daelim Industrial; Essar Group; GS Engineering & Construction Corporation; Pak-Arab Refinery Ltd (PARCO) and Maurel et Prom.

The Expressions of Interest (EOI) for Project Management Consultancy was issued with a submission deadline of September 16, 2013.

In March 2013, Zarubezhneft (Russia), CNPC (China), Brown Energy (US), Reliance Industries (India), Lukoil (Russia), Total (France), JGC and Tonen General (Japan) were shortlisted.

In September 2013, Oil and Natural Gas Corporation (ONGC), Essar Oil, Russia's Rosneft, Maurel & Prom of France and South Korea's GS Engineering & Construction were shortlisted and added to previously shortlisted seven bidders.

In February 2014, the MoO postponed the tender process to June 2014, from the earlier planned January 23, 2014, submission date.

However, in June 2014, MoO again postponed the tendering process citing, technical and administrative preparations.

The tendering process has been delayed due to technical and administrative preparations, political issues and lack of investors.

In October 2017, PetroChina has shown interested in the development.

In February 2018, Total has shown interest in the development.

The project is seeking developer for the project.