NASSIRIYAH, Iraq, Feb. 18 (UPI) -- Iraq's Oil Ministry is negotiating with international firms to build a massive refinery in Nasiriyah to help alleviate fuel shortages throughout the country.

Oil Minister Hussain al-Shahristani, in a recent visit to Nasiriyah, capital of Thi-Qar province in the south, touted his plans to build the refinery, the Al Mashriq newspaper reports in Arabic.

"Most of the oil that we produce is crude oil, but we are working in order to transform to petroleum products," Shahristani said.

Iraq currently has a 598,000 barrel per day refining capacity, according to the U.S. Energy Department's data arm, the Energy Information Administration, but the refineries usually don't work at maximum when online. The new Nasiriyah refinery would add 300,000 barrels per day capacity.

Mashriq reports the refinery will cost $1 billion to build and Canadian and American firms have submitted bids.

"Instead of importers we will become exporters of oil products," Shahristani said. "The Oil Ministry has begun negotiating with the world's largest companies; there are just a few in the world. Projects like this require the largest companies to carry them out."

The ministry is working with the local government to "select the best site for the oil refinery," the Voices of Iraq news agency reports.