Cover
Volume 7, Issue Speical 7 (2026)

Published: November 5, 2026

Pages: 264-274

Research Article

The Economic Feasibility of Crude Oil Refining and Its Role in Maximizing Value Added to the Iraqi Economy

Karrar H. Razzaq 1 Ban R. Yousif 2 Ahmed M. Ahmed 3
1General Commission of Customs, Ministry of Finance, Baghdad, Iraq
2Directorate of Internal Audit and Control, Ministry of Education, Baghdad, Iraq
3Department of Oil and Gas Economics, Imam Ja'far Al-Sadiq University, Najaf, Iraq
History
  • Received: August 15, 2026
  • Available Online: November 5, 2026
DOI

https://doi.org/10.56967/ejfb20261031

Abstract

This study aims to evaluate the economic feasibility of domestic crude oil refining in Iraq and to assess its role in maximizing value added to the national economy compared with the option of directly exporting crude oil. The study adopts an applied quantitative analytical approach, based on official data issued by the Iraqi Ministry of Oil and the Central Statistical Organization, in addition to reports from global oil markets during the period ،(2020–2025).The results show that domestic refining generates an average economic value added of approximately USD 33 per barrel, representing an increase of about 42.3% compared with direct crude oil exports, in addition to achieving a positive net present value and an internal rate of return of 18.7%. Domestic refining also contributes to the creation of direct and indirect employment opportunities and supports petrochemical industries. The study concludes that expanding refining capacity and improving refinery efficiency constitute a strategic economic option for maximizing oil revenues and achieving sustainable economic development in Iraq.

Keywords

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