Baghdad (IraqiNews.com) – An oil refinery expansion project in Iraq is making tangible progress, as part of the country’s efforts to reduce its reliance on imported fuel and increase the value of its crude oil.
The Al-Barham Group (ABG) is carrying out an $800 million expansion project at the Diwaniyah refinery in Iraq.
This project is one of several refinery expansion initiatives that Iraq is pursuing, including those in al-Amarah, Muthanna, Kirkuk, and Qayyarah.
The refinery manager projected in September 2025 that monthly revenues would reach approximately $35 million once the expansion is complete.
The Diwaniyah refinery expansion is progressing steadily toward the operational phase. An atmospheric distillation unit with a capacity of 70,000 barrels per day will bring the refinery’s total production capacity to 90,000 barrels per day—more than four times its current capacity—according to the British magazine Middle East Economic Digest (MEED).
The Iraqi government signed the expansion deal in February 2025. The Prime Minister’s Office (PMO) declared that the contractor will start moving equipment on-site within days after securing the required finance.
In July 2025, work officially commenced at the site, with the Ministry of Oil establishing a five-year timeline for the project’s completion.
In addition to the main distillation unit, the project includes a liquefied petroleum gas (LPG) processing unit with a capacity of 180 tons per day, a naphtha hydro-treating unit with a capacity of 18,000 barrels per day, a gasoline upgrading unit with a capacity of 10,000 barrels per day, a naphtha isomerization unit with a capacity of 8,000 barrels per day, and a loading terminal with a capacity of 90,000 barrels per day.
The project also includes a power generation plant, a nitrogen plant, a water pumping and purification station, an industrial wastewater treatment plant, and 24 storage tanks for crude oil and petroleum products.
Beside high-quality gasoline, the refinery will produce naphtha, kerosene, red diesel, fuel oil, and LPG, supporting Iraq’s objective of achieving self-sufficiency in petroleum products.
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