Development and implementation of modern innovative technologies of oil processing is an important task for modern oil refining world’s industry. Today Iraq is a country where oil refining industry requires deeper level of oil processing. Modern scheme of Iraq oil processing is presented in the article. It describes fuel variant of oil processing that allows increasing of oil processing level up to 94%. Processes that will be fulfilled during oil refining according to proposed variant are described in details. Proposed results are in accordance with normative documents and standards that regulate requirements to quality of light oil products. Innovative technological scheme of Iraq oil processing according to fuel variant is described in the article. Main products of oil processing according to proposed scheme are analyzed.