The government will offer investor incentives, such as deducting 5 percent on the price of crude oil as compared to global prices, giving tax exemptions and providing land, the minister said. Iraq's refining capacity currently stands at 550,000 barrels per day (bpd).
The four new plants — in Nassriya, Karbala, Missan and Kirkuk — are expected to jointly boost that refining capacity by 740,000 bpd. The Iraqi government, which relies heavily on oil exports for its revenue, hopes that foreign investment will eventually increase oil output to 12 million bpd, up from the current 2.5 million bpd.