At the central part of gas and oil infrastructure reproduction in Iraq, SCOP displays how tough engineering jobs can be distributed in a difficult environment with new ideas of contracting and innovative partnership models. Whatever, the real fact about the opposition in Iraq being compelled by the United States’ wish to stable its curiosity in the oil reserves of the country. Though the information is still erratic, the present government considers that Iraq's oil reserves are the greatest in the world, in quantity of 350 billion barrels. This country has managed itself on oil during its regrettable recent history. Even now no one seems confirm how much gas and oil exists to be discovered.
Oil infrastructure of Iraq requires to be modernized, and that will assist to gain a large amount of investment. In spite of a large reorganize program, the oil industry of Iraq has not been success to achieve goal. As stated by the World Bank to retain the present production more $1 billion per year requires to be added in investment. Another fact is that, the oil resources are not uniformly separated into parts with sectarian lines. Most popular resources are in the Kurdish in north, Shia in south and some resources are under maintenance of the Sunni groups in the centre.
Therefore, international investment is important to promote the Iraqi economy. Now there are three great Iraqi oil refineries, the Baijia and Doura in Baghdad and another one at Basra in the southern Iraq. The complete power of these three refineries is around 720,000 barrels per day (bpd). But recently all of them are working at less than their capacity, generating approximately 500,000 bpd.
Iraq is now trying to make twice its refinery power by 2017 and a huge number of oilfield services. This is a task of the State Company for Oil Projects (SCOP) that is an entity of the Ministry of Oil works with gas and petroleum projects. The organization use the services of international processes and standards in setting up the basic designs, machinery supply, testing, , site project execution and engineering examination for tanks and pipelines and welding works, to make certain execution of projects throughout test-run and commissioning.
Once course of action have been confirmed, SCOP starts to design, including bill preparation of materials, entity requirements, contracts, tender documents, and starts to supervise the progress of the project. One of the largest projects to be started is the recent refinery to be developed at Kirkuk, in Kurdish. The Kirkuk oilfield founded in the 1920s is the central part of northern Iraqi oil production. SCOP will be providing the oil refinery to international companies in December 2012. A private company is allowed to develop, design, finance, build, operate, own, and manage a project. The private company owns the project entirely and holds the generating revenue loss and all of the excess of operating revenue in perpetuity. This scheme transfers the risk to the company, in giving of notable upside potential.
The deputy chairman of Iraq's National Investment Commission (NIC), Salar Ameen has criticized as feasibility studies were ongoing with two Italian and American advisers. The Iraqi oil ministry would make public the specifications before the end of the year. The refinery would cost approximately $6 billion with a capacity of more than 150,000 barrels per day of oil. Private sectors from China, US, Korea, UAE and the Saudi Arabia have shown their interest in request for the plan and construction is supposed to be finished by the end of 2016, Salar Ameen said.
The refinery project in Kirkuk is portion of the oil ministry's scheme to develop four refineries across the whole country to gain increasing domestic demand. These refineries, situated in Karbala, Maissan and Nassiriyah also in Kirkuk will have an amount of 740,000 bpd capacity. Whatever one of the Middle East's oil consultants has told that there was a need to build a further refinery with the sole purpose of exporting oil products. This would need to be a large facility with a capacity of at least 500 million barrels, and if located in Basra near the Gulf, the refinery would be in a prime location to export its products.
The UK oil and gas engineering team Penspen registered a settlement with Siemens to provide engineering and procurement services in August 2012 for a recent plain cycle power plant in Southern Iraq. Siemens had agreed with a base opportunity with SCOP to perform on the engineering of the power plant. Work started in August and is supposed to continue until 5 October 2013. There is also chance for a greater scope of works to be settled.
SCOP has the positive point of having formed extremely good working connection with its multinational project partners. The suggested world-wide refinery is being organized to be able to process 300,000 bpsd of native crude oil to generate LPG, premium and super grade gasoline, aviation turbine kerosene, light gas oil, fuel oil, asphalt and heavy diesel oil all gaining global product nature specifications.
SCOP has another aim outside the scope of simply receiving the infrastructure built. It wishes to gain world-scope designs and practices. Foster Wheeler is assisting to teach 35 Iraqi nationals in FEED projects and state-of-the-art study. The contractor offered thorough teaching to a team of 5 chemical engineers from SCOP in prosperous practicable studies in February this year. South Refineries Company and the Iraqi Ministry of Oil solely an initial step in a much greater technology transfer program, declares the company.