The Iraqi Cabinet has approved a one-year, renewable contract between the Ministry of Oil's Midland Refineries Company (MRC) and Rawad Al-Qimmah Company [Rowwad-Elqemma Company], as part of the operational plan for the Karbala Refinery.
The contract, valued at $180 million annually, covers operations, laboratories, maintenance, safety, and staff training for gradual refinery handover.
According to the Prime Minister's Office, this cost is lower than the $219 million per year charged by the previous South Korean contractor, which excluded safety and laboratory responsibilities.
The Cabinet also approved the establishment of a management team under the Midland Refineries Company, led by its Director-General, with eight senior staff from the company and the Karbala Refinery.
This team has financial and contractual authority, exempt from Government Contracting Guidelines (2 of 2014) and related regulations, for two years. This facilitates purchasing materials, chemicals, spare parts, and services with a budget of $15 million. Any additional expenses require approval from the Ministry of Oil's Central Review Committee.
