ABSTRACT This paper outlines a comprehensive analysis of the optimal design and simulation of a crude oil distillation system within a refinery process, including pre-treatment and blending of two crude oils to increase the refinery’s annual profit. This distillation process is currently in operation, and the desired amount of feedstock is obtained from Iraqi Basra light-2015 and Kirkuk-2011 crude oil. To improve the energy efficiency of the utilization rate of crude oil, an atmospheric distillation process unit in this refinery with a capacity of 150,000 barrels per day (bpd) is considered. Aspen HYSYS simulation is used to optimize the distillation unit configuration and its operating performance. This paper also deals with three scenarios by comparing the feedstock compositions to the distillation process and the produced product compositions to minimize utility consumption. A heat integration approach was applied to the 3rd scenario by recycling hot outlet streams to the heat exchangers to increase the temperature of the inlet stream of the distillation column. Results indicated that about £2.29 million per year (Mpy) could be saved from the heat integration systems. Economic analysis and cut yields were carried out for each scenario to investigate the cost-effective and economically viable. Based on the economic analysis, scenario three showed better performance with a comparatively high cumulative cash flow of £31,886 M.