JGC Holdings Corporation revealed today that JGC Corporation, which works the overseas engineering, procurement, and construction (EPC) business of the JGC Group, has been getting the Letter of Award for the Basrah Refinery Upgrading Project for an Iraqi oil refining company under the Iraqi Ministry of Oil.
find the project details below:
| 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 desulfurization unit (40,000 barrels/day), etc. |
| 4. Contract services | Engineering, procurement, construction and commissioning |
| 5. Contract type | Lump sum contract |
| 6. Order amount | Approx. 400 billion JPY |
| 7. Scheduled completion | 2025 |
Iraq is one of the world’s most oil-producing countries, with a permanent crude oil reserve of 145 billion barrels per day crude (BPD) oil production of 4.41 million barrels. However, the two refineries currently in operation were built in the 1970s and their production capacity has fallen due to war damage and depletion. Unable to meet the domestic requirements for petroleum products, Iraq has to import petroleum products like gasoline.
Funding for the project will be obtained via Japanese ODA loans from the Japan International Cooperation Agency (JICA) and is the largest-scale reconstruction help from Japan since the 2003 Iraq War.
complete this project, the Group plans to dealings skills training for more than 1,000 Iraqis and to hire around 7,000 skilled Iraqi employees. Furthermore, it is required that more than 2,000 operating personnel jobs will be provided after the project’s completion, which will contribute to resolving the unemployment problem in Iraq.