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Chinese Consortium to Develop Dhi Qar Refinery

By John Lee.

Iraq’s Ministry of Oil has signed an outline agreement with a Chinese consortium for the development of the Dhi Qar refinery.

A Ministry official described the signing of the initial principles agreement as an important step forward, and a prelude to the signing of the final investment contract for the Dhi Qar refinery project, which will have a capacity of 100,000 barrels per day (bpd).

The Director General of the Southern Refineries Company (SRC), Hussam Wali, said that the final signature of the contract will be made “after the completion of the economic model of the investment contract“, and it is hoped that this will take place within three months.

The consortium consists of Chinese state-owned arms manufacturer Norinco (which owns ZhenHua Oil), Power China (Power Construction Corporation of China), CNEC (China Nuclear Engineering & Construction?) and the UAE Company for Middle Services Ltd.

(Source: Ministry of Oil)

The post Chinese Consortium to Develop Dhi Qar Refinery first appeared on Iraq Business News.

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Iraq signs $2bn Oil Deal with Chinese Firm

By John Lee.

Iraq has reportedly awarded a Chinese company a deal which would see it paying $2 billion upfront for a year’s supply of oil.

Alaa al-Yasiri, General Manager of State Oil Marketing Organization (SOMO) told Iraqi News Agency (INA) that a Chinese company had won the contract ahead of a European company, but did not identify the company.

Bloomberg had previously reported that China’s ZhenHua Oil was poised to sign the contract.

More here and here.

(Sources: Bloomberg, FT, INA)

The post Iraq signs $2bn Oil Deal with Chinese Firm first appeared on Iraq Business News.

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Rockets strike near Chinese oil site in Iraq

By John Lee.

Two rockets have reportedly struck near a Chinese oil facility south of Baghdad on Saturday.

According to AP, there were no casualties.

It cites an Iraqi army statement saying the rockets struck near a Chinese company in the Nahrawan area, and speculates that the company involved is ZhenHua, a subsidiary of the arms manufacturer Norinco, which has been working in the nearby East Baghdad oil field.

(Source: AP)

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Chinese Companies to build Fao Refinery

By John Lee.

Iraq has reportedly signed a contract with two Chinese companies to build the Fao [Faw] oil refinery.

An Iraqi oil official told Reuters the 300,000-bpd facility will include a petrochemical plant.

It is to be built by the Power Construction Corporation of China (PowerChina) and Norinco.

(Source: Reuters)

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ZhenHua expands China’s role in Iraq’s Oil Sector

By John Lee.

Iraq Oil Report reports that the China ZhenHua Oil Company, a subsidiary of state-owned arms manufacturer Norinco, is poised to make two new investments in Iraq’s oil sector.

It says the company is forming a new oil trading joint venture with the State Oil Marketing Organization (SOMO) and is negotiating the upstream development of the East Baghdad oil field.

Click here to read the full report (subscription needed).

(Source: Iraq Oil Report)

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SOMO Awards Diesel Tenders

By John Lee.

Sources have told Reuters that China’s state-run Zhenhua Oil will supply diesel (500 parts per million (ppm) sulphur) to Iraq’s State Oil Marketing Organization (SOMO) through a term contract for the first time.

It will supply 600,000 tonnes of the 2.37 million tonnes sought by SOMO in a tender for delivery in the 2018 calendar year.

The company is part of defence conglomerate China North Industries Group Corp (NORINCO).

BB Energy, Litasco (the international marketing and trading arm of Russia’s Lukoil) and Lima Energy (a joint venture between Litasco and SOMO) will also supply about 25 percent each.

(Source: Reuters)