Iraqi Prime Minister Mohammed Shia al-Sudani and the Ministry of Oil have approved the establishment of Kirkuk’s first oil refinery, Governor Rebwar Taha announced on Thursday.

Taha stated that Kirkuk has signed its first investment contract to construct a refinery with a capacity of 70,000 barrels per day. The facility will be built southwest of Kirkuk, near the North Gas Company (NGC), with Rania International as the executing company.

Kirkuk currently relies on the Baiji refinery and others for its oil needs. The new refinery is expected to boost local production and improve the supply of oil derivatives to neighboring provinces.