Kurdistan Region unable to use crude oil refining capacity
Story summary
While the Kurdistan Region can produce refined products at a time of low crude oil prices, it has not yet used the capacity of its existing refineries and has not attempted to build a new refinery, Oil Price wrote.
The Iraqi Kurdish region has been facing sharp declines in oil revenues since last winter, when crude oil prices plummeted, and has asked the Iraqi government to help pay its employees.
Oil Price magazine has stated that one of the reasons behimd the current economic weakness of the Kurdistan Region is the sale of crude oil and the lack of using its refining capacity.
The magazine further points out that although there are currently several refineries in the Kurdistan Region and crude oil can be converted into more useful products in the refinery instead of being exported at low prices, the capacity of these refineries has not been used.
Oil Price, for example, points out that the Kelk refining complex in the Kurdistan Region, which is probably the largest of its kind in the Kurdistan Region, has used an average of 20 to 30 percent of its capacity.
Reporter’s code: 50101
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