The Iraqi Ministry of Oil announced Monday the signing of a memorandum of understanding (MoU) with Honeywell, the American multinational, aimed at bolstering Iraq's refinery capabilities. 

The agreement, overseen by Iraqi Prime Minister Mohammed Shia' al-Sudani, aims to significantly increase Iraq's refining capacity and optimize its economic output.

Hamed Al-Zobaie, Deputy Minister for Refining Affairs, highlighted the strategic importance of the MoU, stating that it aligns with PM Sudani's directive to boost Iraq's refining capacity to 40% of its crude oil production. 

This enhancement is expected to amplify the value of Iraqi crude oil on the global market, making a positive impact on the economy.

"The expansion of refinery capacities will enhance the economic value derived from our crude oil production," Al-Zobaie told a press briefing.

Under the MoU, seven major refinery projects are planned across key provinces including Maysan, Thi Qar, Muthanna, and Najaf. 

Each project is designed to process up to 70,000 barrels per day, aimed at meeting domestic consumption needs and potentially increasing export capabilities.

Additionally, the Ministry highlighted ongoing efforts to modernize existing facilities such as the Doura and Qayyarah refineries, as well as the imminent completion of new centers such as the Azmara unit at the Northern refinery, which will boost high-octane gasoline production.

In addition to refinery expansions, the Ministry disclosed plans for a comprehensive pipeline network aligned with Iraq's development roadmap. This infrastructure upgrade aims to streamline the transportation of crude oil and natural gas between northern and southern Iraq, enhancing logistical efficiencies and supporting economic growth.

PM Sudani reaffirmed the government's commitment to strengthening Iraq's oil sector capabilities, emphasizing the strategic importance of these initiatives for the country's economic development.

The Ministry of Oil anticipates that Honeywell's expertise and technological capabilities will play a crucial role in knowledge transfer and skill development within Iraq's refinery sector. 

Detailed plans and timelines for project execution are expected to be finalized in the coming weeks, aligning with Iraq's long-term economic strategies.

Iraq is actively pursuing strategic agreements and initiatives to develop its oil and gas sectors, aiming to enhance production capacities and reduce environmental impacts. 

The Iraqi state-owned Midland Oil Company recently signed an initial agreement with a Chinese consortium to develop the Mansouriya gas field in Diyala province. 

This move is part of Iraq's broader strategy to utilize its gas resources effectively, following similar efforts in the Akkas gas field.

The Ministry of Oil is focused on closing the gas flaring file and progressing ongoing projects while investing in new gas fields across various provinces. 

Projects allocated through recent licensing rounds highlight Iraq's commitment to expanding its energy infrastructure.

PM Sudani has been actively involved in boosting Iraq’s refining capacities, recently overseeing the signing of the Al-Faw Oil Refinery Project contract with China National Chemical Engineering Co. (CNCEC). This project, integral to the Grand Faw Port initiative, underscores Iraq’s efforts to attract foreign investment and meet domestic petroleum demands.

The Iraqi government has also launched competitive bidding for global oil and gas exploration contracts across 12 provinces, underscoring Iraq's pivotal role in the global energy market. The government aims to eliminate gas flaring within the next 3 to 5 years, in accordance with its commitment to environmental sustainability and resource optimization.

Meanwhile, efforts in the Kurdistan Region are gearing towards resuming oil exports, demonstrating Iraq's comprehensive approach to enhancing its energy sector amid regional and global economic dynamics.