Shaw Wins Feasibility Study on Basra Refinery

The Shaw Group Inc. (NYSE: SHAW) has announced that it has been awarded a contract by the South Refineries Company, which is part of the Republic of Iraq’s Ministry of Oil, to provide a feasibility study for the rehabilitation of its 140,000 barrels per day refinery in Basra, Iraq.

The study will assess the current condition of the refinery and estimate the engineering, equipment supply and construction services required to improve its operation.

The study is funded by the United States Trade and Development Agency (USTDA) through a grant to the South Refineries Company. This is the first grant the agency has provided directly to an Iraqi grantee, marking the USTDA’s support of Iraq’s long-term economic development.

“This study will help to promote the development of Iraq’s oil business and modernize vital facilities,” said James Glass, president of Shaw’s Energy & Chemicals Group. “This is Shaw’s fourth refining project in Iraq, reinforcing our continuing commitment to the Middle East region.”

In Iraq, Shaw is conducting feasibility studies and front end engineering and design (FEED) for two grassroots 150,000 barrels per day refineries near the cities of Maissan and Kirkuk, for the Republic of Iraq’s Ministry of Oil.

The FEED work includes all process units, offsite facilities and utilities for both refineries. Through a fluidized catalytic cracking alliance, Shaw, with its partner, Axens, are providing a process design package for a 30,000 barrels per day residual fluidized catalytic cracking (RFCC) unit at Midland Refineries Company’s refinery in Daura.

The undisclosed value of the contract will be included in Shaw's Energy & Chemicals segment’s backlog of unfilled orders in the first quarter of fiscal year 2012.

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