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Iraq: EPCC JGC Secures Contract for Upgrading Basrah Refinery in Iraq

| Editor: Ahlam Rais

South Refineries Company, an oil refining company under the Iraqi Ministry of Oil, has awarded the EPCC contract to JGC Corporation. Once completed, the Basrah refinery is expected to increase production to 19,000 barrels/day of gasoline and 36,000 barrels/day of diesel fuel.

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Under the terms of the agreement, JGC will install a fluid catalytic cracking unit, a vacuum distillation unit and a diesel desulfurisation unit adjacent to the existing Basrah refinery in Iraq.
Under the terms of the agreement, JGC will install a fluid catalytic cracking unit, a vacuum distillation unit and a diesel desulfurisation unit adjacent to the existing Basrah refinery in Iraq.
(Source: Deposit Photos)

Yokohama/Japan – JGC Holdings Corporation has recently announced that JGC Corporation has received the Letter of Award for the Basrah Refinery Upgrading Project for an Iraqi oil refining company under the Iraqi Ministry of Oil.

Details of the project are as follows.

  • 1. Client: South Refineries Company (Oil refining company under the Iraqi Ministry of Oil)
  • 2. Construction location: Basrah, Republic of Iraq (Approx. 550 km SE of the capital of Baghdad)
  • 3. Primary equipment (processing abilities): Fluid catalytic cracking unit (34,500 barrels/day), vacuum distillation unit (55,000 barrels/day), diesel desulfurisation unit (40,000 barrels/day), etc.
  • 4. Contract services: Engineering, procurement, construction and commissioning
  • 5. Contract type: Lump sum contract
  • 6. Order amount: Approx. 4 billion dollars (400 billion JPY)
  • 7. Scheduled completion: 2025

Iraq is one of the world's leading oil-producing countries, with a confirmed crude oil reserve of 145 billion barrels and a daily crude oil production of 4.41 million barrels. However, the two refineries currently in operation were constructed in the 1970s and their production capacity has decreased due to war damage and deterioration. Unable to meet domestic demand for petroleum products, Iraq has to import petroleum products such as gasoline.

This upgrading of the Basrah refinery will newly install, on land adjacent to the existing Basrah refinery, a fluid catalytic cracking unit, a vacuum distillation unit, a diesel desulfurisation unit, etc., thereby increasing production to 19,000 barrels/day of gasoline and 36,000 barrels/day of diesel fuel, making it possible to reduce the gap in supply and demand for petroleum products.

In addition, the petroleum products produced at the modernised refinery will meet international environmental standards and it is expected that they will contribute to reducing the environmental impact. This project is positioned as spearheading the modernisation and sophistication of Iraq's oil refining sector.

Funding for the project will be procured through Japanese ODA loans from the Japan International Cooperation Agency (Jica), and is the largest-scale reconstruction assistance from Japan since the 2003 Iraq War.

In carrying out this project, the Group plans to conduct skills training for more than 1,000 Iraqis and to hire approximately 7,000 skilled Iraqi workers. Furthermore, it is expected that more than 2,000 operating personnel jobs will be created after the project's completion, which will contribute to solving the unemployment problem in Iraq.

The Group completed a power station reconstruction project in Iraq in 2013, and this is the Group's second project in Iraq. The Group will contribute to the reconstruction and economic development of Iraq through the successful completion of this project.

(ID:46807306)