An Iraqi oil refinery built in Somalia during the 1970s has unexpectedly returned to the spotlight, offering a potential avenue for renewed cooperation between Baghdad and Mogadishu.
Economist Nabil Al-Marsoumi revealed that the facility, constructed in 1974 by Iraq’s State Company for Oil Projects with an annual refining capacity of 500,000 tons, still exists despite decades of neglect and conflict. The long-forgotten asset resurfaced when Somalia’s president approached Iraqi Prime Minister Mohammed Shia al-Sudani during the recent Arab League Summit in Baghdad, requesting rehabilitation of the damaged refinery.
The original deal represented a unique arrangement where Iraq financed the construction costs in foreign currencies, while Somalia committed to repaying its 50% share over three years after operations began, at minimal interest. “Quite the surprise,” Al-Marsoumi noted. “Iraq has a refinery abroad and nobody even knew!”
