Somali President Hassan Sheikh Mohamud, while in Iraq, attending the 34th Arab League summit, requested the Iraqi government to help renovate the Oil Refinery, which the Iraqi government built in 1974.
The refinery, located in the northeastern district of Barawe, has the capacity to refine 10,000 barrels of oil per day, equivalent to 500,000 barrels per year.
The was refinery built by an Iraqi company called General Company for Oil Project.
The construction agreement of this company stipulated that Iraq would finance the construction of the refinery, while Somalia would pay half of the costs within three years of its operation.
The industry was also operational in 1980, when Iraqi oil exports were cut due to the Iraq-Iran war, and after that, the industries production continued to decline until it reached 6% in 1989.
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