Iraq reopens oil refinery in Baiji after a decade of closure

Iraq reopened its rehabilitated oil refinery in Baiji on Friday, after a decade-long shutdown, its Prime Minister Mohammed Al-Sudani said.

PHOTO: Oil barrels and pumpjacks on the map of Iraq. Getty Images

With the restart of its North Refinery in Baiji, Iraq aims to subsequently end its reliance on imports of oil products. It aims to increase crude processing capacity and supply all the domestic demand by mid-2025, the Prime Minister's media office stated.

The refinery is slated to process about 150,000 b/d of crude oil. The total processing capacity of the refining complex will now be 290,000 b/d, Reuters reported.

This may not have a significant effect on Brent spot prices immediately, but in the long term, it could lead to increased exports from Iraq and put a downward pressure on Brent 's price.

Iraq, a key member of OPEC, produced 4.19 million b/d of crude oil in January, making it the second-biggest producer in the group, according to OPEC monthly oil market report.

The oil refinery was shut down in 2014 when the Islamic State militia (ISIS) seized crude oil and petroleum products from the refinery.

By Aparupa Mazumder 

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