Japanese Firm awarded $3.7bn Iraq Deal

JGC Holdings Corporation announced today that JGC Corporation, which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, has been 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 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 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, fluid catalytic cracking unit, vacuum distillation unit, and diesel desulfurization 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 modernized 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 modernization 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.

(Source: JGC)

7 Responses to Japanese Firm awarded $3.7bn Iraq Deal

  1. John Jacob 18th August 2020 at 18:15 #

    Nice to hear the news.Worked in JGC for 3 major and prestegious projects .Wishing all sucess to JGC.

  2. Praveen Atnurkar 18th August 2020 at 19:41 #

    It's really very happy to know that JGC got project.I worked with them in KSA, Singapore and Vietnam projects.Ready to work with them again.Its all because of their systems they work.

  3. Jaime M. Castillo 20th August 2020 at 08:37 #

    Congrats JGC.

  4. Pawan k. Verma 22nd August 2020 at 03:59 #

    It seems happy to hear this announcement and this project is greatly appreciated.
    And thanks to giving once again this golden opportunity to your employees.

    My best wishes all the time with you.

  5. Ravindran pulloli. 24th August 2020 at 14:12 #

    Glad to hear the good news.jgc deserve for such projects

  6. Sugumaran 13th September 2020 at 11:02 #

    Congratulation JGC

  7. Hilal Kader 19th September 2020 at 10:08 #

    thanks for Japanese firm participating in projects that are useful to Iraqi people

Leave a Reply