Karbala refinery: Integrity Commission findings on the USD 6 billion Korean consortium contract and an outlet pipeline order (from 2014 to 2026)
In January 2014 the Council of Ministers approved a USD 6.04 billion engineering, procurement and construction contract between the Ministry of Oil's State Company for Oil Projects and a four-company consortium led by Hyundai Engineering & Construction for a refinery at Karbala. In June 2023 MP Alia Nassif said the Midland Refineries Company had colluded with the Korean contractor, and in May 2023 Parliament's Integrity Committee questioned that company's Director General, Aid Jaber Imran, about the refinery. On 16 October 2023 the Federal Integrity Commission said it had found violations in the project, which it valued at USD 6 billion: the power station meant to serve the refinery had not been built, the hydrogen unit had stopped, equipment was corroding, a heat exchanger leaked, and no delay penalties had been imposed on the contractors. In December 2023 an oil police major was detained for blocking commission investigators at the refinery. On 22 January 2025 Prime Minister Mohammed Shia al-Sudani told the commission to finish its inquiry into an order for outlet pipelines given to a non-specialist intermediary company. In June 2026 MP Rabee al-Mousawi reported further suspected irregularities.
- Period
- From January 2014 to June 2026
- Sector
- Oil and gasRefinery construction contract (Karbala, State Company for Oil Projects)
- Kind of case
- Audit finding
- Jurisdiction
- Federal Iraq
How the money moved, according to the sources
Weak contract enforcement: associated works left unbuilt, no delay penalties on the contractors, and a pipeline order passed to an unqualified intermediary, according to the Integrity Commission and the Prime Minister's office.
What happened
Inquiry open as of the last reports found (January 2025 directive; June 2026 referral by an MP). No charge against a named person is on record in this matter.
Open questions
- The Integrity Commission's final findings and any referral to court.
- The name of the intermediary company in the outlet pipeline order.
- Whether delay penalties were later imposed on the consortium.
People and companies
| Name | Role in the case | Legal status | Detail | As of |
|---|---|---|---|---|
| Aid Jaber Imran عائد جابر عمران | Director General, Midland Refineries Company (Ministry of Oil) | Convicted (reported) | In this case he is named as the Director General whom Parliament's Integrity Committee questioned in May 2023 over suspected corruption including at the Karbala refinery; no charge concerning the Karbala refinery is on record. His reported conviction for illicit gain (29 November 2023) is recorded under Midland Refineries Company: Director General Aid Jaber Imran arrested and sentenced for illicit enrichment (2023). | 19 October 2026 |
| Oil police major at the Karbala refinery (name not given) ضابط برتبة رائد في شرطة النفط بمصفى كربلاء (لم يُذكر اسمه) | Officer of the Oil Police at the refinery checkpoint | Arrested | Detained on a judge's order in late 2023 for blocking Integrity Commission investigators from entering the Karbala refinery, according to the commission. Name not given; outcome is not on record. | 19 October 2026 |
| Abdul Karim al-Luaibi (Abdulkareem Liaybi) عبد الكريم اللعيبي | Minister of Oil (January 2014) | Not charged as of the date of writing | Not charged as of the date of writing. Named as the oil minister who announced the Karbala refinery contract award in January 2014. | 19 October 2026 |
| Hyundai Engineering & Construction هيونداي للهندسة والإنشاءات | Leader of the four-company Korean consortium that holds the Karbala refinery EPC contract (2014) | Not charged as of the date of writing | Not charged as of the date of writing. The Integrity Commission found that no delay penalties had been imposed on the executing companies and that associated works were unfinished. No charge, court ruling, sanction or official finding is on record in the sources read. MP Alia Nassif alleged collusion between the Midland Refineries Company and the Korean contractor. | 19 October 2026 |
Sources
- Alsumaria News11 May 2023Official statement reported by the mediaTier B
البرلمان يستضيف مدير مصافي الوسط للتحقيق بشبهات فساد وملفات كبيرة
Original addressاستضافت اليوم مدير مصافي الوسط عائد جابر عمران، للنظر بشبهات فساد وملفات كبيرة تشوب مصفى كربلاء ومصفى النجف الاستثماري ومصفى الدورة وكذلك محافظة المثنى
- Alsumaria News8 June 2023Official statement reported by the mediaTier B
نصيف تكشف عن ملفات فساد بمصفى كربلاء
Original addressملف مصفى كربلاء يشوبه الكثير من الفساد، وبعد الاطلاع على الملف وجدنا خللا فيه بحيث ان الانابيب صدئة بعد شهر من التشغيل بالإضافة الى قلة الطاقة الإنتاجية للمصفى خلافا للمخطط
- 964 Media16 October 2023Integrity Commission statementTier B
بقيمة 6 مليارات دولار.. النزاهة تكشف مخالفات بعقد في مصفى كربلاء النفطي
Original addressدائرة التحقيقات في الهيئة أفادت بوجود مُخالفاتٍ في عقد مشروع تنفيذ أذرع التحميل الثقيلة في مصفى كربلاء الذي أبرمته شركة المشاريع النفطيَّة في وزارة النفط في العام 2014 مع ائتلاف شركاتٍ كوريَّةٍ برئاسة شركة (هيونداي)
- Non News Agency (non14.net)16 October 2023Integrity Commission statementTier B
النزاهة تكشف مخالفات بعقد في مصفى كربلاء بـ(٦) مليارات دولار
Original addressأكَّد عدم إنشاء محطة الكهرباء المصاحبة للمصفى، فضلاً عن توقُّف منظومة الهيدروجين، وتآكل واندثار معدَّات المشروع، ووجود تسرُّبٍ في مبادلةٍ حراريَّةٍ لمادتي النفط والگاز، مشيرةً إلى عدم فرض غراماتٍ تأخيريَّة
- Non News Agency (non14.net)1 December 2023Integrity Commission statementTier B
النزاهة: توقيف ضابط برتبة رائد في مصفى كربلاء حاول عرقلة إجراءات الهيئة التحقيقية
Original addressاعتراض من ضابط في شرطة النفط برتبة رائد، ومنع أعضاء الفريق من الدخول
- 964 Media22 January 2025Government statementTier B
السوداني يوجه النزاهة بحسم التحقيق في مخالفات مصفى كربلاء
Original addressمشروع تجهيز وتصميم مواد طلبيات الأنابيب الخارجة عن مصفى كربلاء، المستخدمة لتصريف المنتجات النفطية الخفيفة، إذ جرت الإحالة إلى شركة وسيطة غير متخصصة
- Shafaq News30 June 2026Official statement reported by the mediaTier B
100 مليون للتنظيف و956 عاملاً بلا إجازات.. الكشف عن مخالفات بمصفى كربلاء
Original addressعن وجود شبهات مخالفات قانونية وإدارية ومالية في مصفى كربلاء النفطي، مؤكداً أنه أمضى أكثر من ثلاثة أشهر في تدقيق ومتابعة الوثائق
- Oil & Gas Journal9 January 2014Press reportTier D
Iraq seals deal for Karbala refinery
Original addressThe Iraqi council of ministers approved the contract award between the oil ministry’s state company for oil projects and a four-company consortium led by Hyundai Engineering & Construction on Jan. 7, a cabinet statement said.
- Independent Arabia18 October 2023Press reportTier D
العراق يكشف مخالفات بـ 6 مليارات دولار في مصفاة كربلاء
Original addressالمشروع بلا محطة كهرباء وتآكلت معداته ولم يتم تشغيله حتى الآن على رغم افتتاحه 3 مرات