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By John Lee.

The Japan International Cooperation Agency (JICA) has ssigned a loan agreement with Iraq to provide a Japanese ODA loan of up to 203,060 million yen [$1.4 billion] for the Basrah Refinery Upgrading Project (V).

This project will improve Iraq's capacity for producing oil products and the quality of such products by installing a new fluid catalytic cracking (FCC) complex in the Basrah Refinery, one of the biggest oil refineries in the country, located in Basra Governorate.

Full statement from JICA:

On August 16, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Republic of Iraq in Baghdad to provide a Japanese ODA loan of up to 203,060 million yen for the Basrah Refinery Upgrading Project (V).

This project will improve Iraq's capacity for producing oil products and the quality of such products by installing a new fluid catalytic cracking (FCC) complex in the Basrah Refinery, one of the biggest oil refineries in the country, located in Basra Governorate.

Although Iraq has high oil-producing potential, with its crude oil reserves ranked fifth in the world, its domestic demand for oil products, such as gasoline and diesel, depends heavily on imports from other oil-producing countries. This is because many of the oil-refining facilities in Iraq are currently out of service or deteriorating and thus operate below capacity due to long-lasting conflicts.

By installing the FCC complex in Iraq, this project will enable the country to produce oil products that meet international environmental standards, strengthening the oil sector-which dominates Iraq's economy-and thereby contributing to the country's economic and social reconstruction. Moreover, this project will also contribute to the achievement of SDGs (Sustainable Development Goals) Goals 7 (Affordable and clean energy) and 9 (Industry, innovation and infrastructure).

JICA has provided four ODA loans for the Basrah Refinery Upgrading Project, of which the first tranche was signed in October 2012 with the amount of 42,435 million yen, the second in June 2019 with 110,000 million yen, the third in October 2021 with 32,700 million yen, and the fourth in December 2022 with 120,000 million yen. This project is the fifth tranche of its kind.
Special Terms for Economic Partnership (STEP)* will apply to the Japanese ODA loan for this project, and Japan's advanced technical know-how and engineering skills will be utilized at the FCC complex being constructed under the project.

*STEP refers to special assistance terms for promoting the visibility of Japanese aid through a transfer of outstanding Japanese technology and expertise to developing nations. The main contract is Japan tied and subcontracting is general untied. The main agreement partner must generally be a Japanese company, an overseas subsidiary of a Japanese company, or a joint venture between a Japanese company and the borrowing country where the Japanese company is the lead partner, although under certain conditions a joint venture between a Japanese company (which is the lead partner of the joint venture) and an affiliated company (as accounted under the equity method) of a Japanese company may be the main agreement partner.

Details for the loan are provided below.

Ministry of Oil
Address: Ministry of Oil Building, Baghdad, The Republic of Iraq

For further information about the procurement schedule, please contact the party
listed below.
Contact Point for Iraq Team, Division II, Middle East & Europe Department, JICA Headquarters
Address: 5-25, Niban-cho, Chiyoda-ku, Tokyo, JAPAN
Phone: +81-3-5226-6660

• Ex-Ante Evaluation

(Source: JICA)

By John Lee.

UK-based IrisGuard and Iraq's NassWallet have announced a new partnership with the integration and deployment of IrisGuard EyePay iris enabled smartphone, and EyeCloud platform with NassWallet's mobile wallet service.

According to a statement from IrisGuard, the integration will enable a regular verified disbursement of humanitarian cash assistance, provided by the United Nations High Commissioner for Refugees (UNHCR) to over 280,000 refugees who have fled to Iraq due to neighbouring conflicts.

NassWallet has been growing rapidly in recent years. In 2022, it processed over $1 billion in transactions across all its services in Iraq. This growth is being driven by the increasing popularity of mobile payments in Iraq and they are expanding their operations and new locations across major cities in Iraq.

IrisGuard's EyePay® platform utilises the human iris for 100% certain proof-of-life, ensuring cash assistance is delivered to those entitled to it without payment cards or bank accounts.

NassWallet have now deployed IrisGuard's EyePay® payment system at 37 sites in Iraq and plan to increase this to 55 locations. Refugees are now able to easily and securely withdraw aid cash, using only their eyes as their unique identifier to the wallet.

Requiring only a 2G signal and featuring full GSMA & FCC approvals, the IrisGuard iris enabled Android EyePay® Phone is compatible with over 1400+ GSM mobile network operators (subject to local regulatory requirement). Biometric authentication for ensuring 100% proof of presence removes the need for any other form of ID such as PIN, card or ID documents. This anchor authentication is fast becoming a popular way for wallet security, accepted by users in both the developed and the developing worlds.

(Source: IrisGuard)

By John Lee.

The Ministry of Oil has opened the largest and most advanced oil training center in Basra, in collaboration with the Japanese company JGC.

Hamed Younis, the Deputy Minister of Oil for Refining Affairs, emphasized the ministry's strong focus on training, qualifying, and developing the skills of workers in the oil sector. He highlighted the importance of this center, which features modern training facilities supervised by global experts, in achieving the goals of human resources development and preparing workers in specialized oil-related fields. The center is seen as a significant milestone in this industry.

Hussam Wali, the General Manager of South Refineries Company (SRC), stated that this center is the result of the ministry's collaboration with JGC, the company responsible for implementing the FCC (Fluid Catalytic Cracking) project. The contract includes the establishment of the largest professional training center in the region, located in Basra.

The center can accommodate over 140 trainees who will undergo training based on the latest advanced global programs, aimed at developing and enhancing their skills and capabilities.

(Source: Ministry of Oil)

By John Lee.

Iraq and Japan have signed a memorandum granting a Japanese loan for the Basra Refinery Development Project (Phase IV).

The agreement was signed on Wednesday by Iraq's Minister of Finance, Taif Sami Mohammed, the Chargé d'Affaires of the Japanese Embassy in Baghdad, Masamoto Kenichi, and the Executive Director of JICA Iraq Office, Mr. Yoneda Jin.

The loan totals 120 billion Japanese yen, approximately equivalent to 900 million US dollars.

The project involves a new Fluid Catalytic Cracking (FCC) complex at to be built by Japan's JGC Corporation.

(Sources: Ministry of Oil, Ministry of Finance)

By John Lee.

Japan's JGC Corporation has said it expects its Iraqi oil refinery project to significantly increase its sales for the fiscal year starting 1st April 2022.

Prime Minister Mustafa Al-Kadhimi laid the foundation stone for the new $4-billion Fluid Catalytic Cracking (FCC) complex at Basra Refinery in April 2021. The project will increase the refinery's capacity by 55,000 barrels per day (bpd).

The company said that detailed design has begun, orders for major equipment are almost complete, and construction site development work is progressing smoothly.

Regarding recent sharp increases in equipment prices, it said that purchase of bulk materials will begin after detailed engineering work is started; while it will continue to
monitor the situation closely, it assumes no significant impact.

(Source: JGC)

By John Lee.

The newly-elected Iraqi parliament has re-elected Mohamed al-Halbousi (pictured) as Speaker for a second term.

Mr Halbousi received 200 votes, with his opponent, Mahmood al-Mashhadani, getting just 14.

According to Al Jazeera, Parliament now has 30 days to elect the country's new President, who will then ask the largest bloc in parliament to form a government.

More here (video), and here.

(Sources: Iraqi Parliament, AP, Al Jazeera)

As COP26 negotiations conclude, call for urgent climate action in Iraq is louder than ever

The United Nations in Iraq has welcomed commitments made at COP26 in Glasgow but stresses the need for urgent action on these promises to limit climate change's adverse impacts on human rights and sustainable development in Iraq.

Commitments made at the UN Framework Convention on Climate Change (UNFCC) conference - attended by a Government of Iraq high-level delegation from representatives of the ministries of Environment, Finance, Foreign Affairs, Higher Education, Industry and Oil, as well we representatives from the private sector - include:

• The announcement of an additional $US356 million to the Adaptation fund which will increase the resilience of vulnerable communities on the frontline of climate change. This stronger commitment paves the way for greater resources to avert, minimise and address loss and damage in Iraq.
• The Breakthrough Agenda, an international strategy to deliver clean and affordable technology everywhere by 2030, signed by more than 40 world leaders. This commitment is critical to helping Iraq's gradual energy transition and accelerating low carbon solutions.
• The Global Forest Finance Pledge, a commitment to end deforestation by 2030 will help Iraq scale up its forest conservation efforts, facilitate trade to promote sustainable development and increase rural employment opportunities.
• A commitment to improving transparency and environmental integrity through the implementation of Article 6 of the Paris Agreement on international emissions trading. Iraq fully supports an independent mechanism to redress potential harms and support the creation of new markets for carbon unit trading by both public and private sectors.

Additionally, the Glasgow Climate Pact cites several areas of cooperation relevant to Iraq, including the need to boost funding for diverse climate technologies and a stronger commitment to capacity building.

"Iraq is a country vulnerable to the negative impacts of climate change - one of the most vulnerable in the region and indeed the world. We are grateful to the United Nations Development Programme in Iraq for its ongoing support to climate action in Iraq, and for supporting the delegation to this important conference," says Iraq's Acting Minister for Environment, Dr Jassem Al-Falahi.

The United Nations Secretary-General's Deputy Special Representative for Iraq and Resident Coordinator Irena Vojáčková-Sollorano emphasises the UN in Iraq's commitment to urgent action on climate change.

"Climate Change in Iraq is a severe threat to fundamental human rights and creates barriers to sustainable development. Across the UN system in Iraq, we are working on the key components of climate action - from awareness-raising and adapting to climate change, to mitigating its risks. With COP26 now done and dusted, we urge world leaders to make good on their promises, many which are critical to supporting a cleaner, safer and greener Iraq," she says.

Resident Representative of UNDP Iraq, Zena Ali Ahmad acknowledged UNDP's role in supporting the COP26 delegation and Iraq's formal submission of its Nationally Determined Contribution (NDC) - the country's central policy for driving climate action.

"UNDP Iraq was proud to support the Government of Iraq's formal submission of its NDCs, as well assisting the delegation to COP26 to ensure Iraq's needs were firmly placed on the global agenda. Our support to the country's fight against climate change does not end with COP26, and we look forward to continuing our work with the Government, UN partners, the international community and others to implement Iraq's NDCs and turn the conference outcomes into tangible actions," she says.

(Source: UN)

By John Lee.

French-based Axens -- part of the IFP Energies Nouvelles group -- has said it is pleased to continue working with JGC Corporation on the Basrah Refinery Upgrading Project.

Earlier this month, Prime Minister Mustafa Al-Kadhimi laid the foundation stone for the $4bn-project.

In a statement, the company said:

Part of Iraq's Ministry of Oil, the state-owned South Refineries Company (SRC) executed the upgrading of its refinery located in Basrah, Iraq by implementing a new refining plant adjacent to the existing refinery facility. The Basrah Upgrading Project is now reaching the engineering, procurement and construction (EPC) phase carried out by JGC Corporation (JGC).

Axens is pleased to continue being involved in this important Iraqi project, which will increase the gasoline and diesel production along with other oil products, reducing the national refined products imports. The Basrah Upgrading Project will also improve oil refinery efficiency of the complete facility.

Different Axens' technologies were selected and will be used:

• a Diesel hydrotreatment unit (Prime-DTM)
• a VGO Hydrotreating unit
• a VGO FCC unit
• an oligomerization unit (PolynaphthaTM)

Thus, an integrated scheme around the FCC unit is implemented thanks to Axens' unique position for a complete FCC suite of technologies from pre-treatment to post-treatment. The PolynaphthaTM technology downstream the FCC unit for oligomerization of light olefins aims at maximizing gasoline production.

With this award, another reference is added to the long list of more than 300 FCC projects. Industrial successes in this domain keep the FCC Alliance as a global leader with a track record of 4 new grassroots FCC units started up in the past 4 years.

In addition, Axens will provide catalysts & adsorbents, key technology features such as proprietary equipment, trainings and technical services.

Jacques Rault, Conversion & clean fuels Business Line Director, Process Licensing at Axens, said:

"The Basrah refinery is expanding its operations by increasing its gasoline and diesel production while improving the fuels quality. This will help to solve one of the main challenges to lower national petroleum products imports revitalizing the Iraqi refining sector damaged by war and deterioration. South Refineries Company selected Axens for its wide and proven experience in refining as a partner to supply technologies but also to support throughout the whole project."

Ibraheem Al-Salihi, FCC Project Manager, South Refineries Company, said:

"The Iraqi Ministry of Oil and the Southern Refineries Company with the support of the Japanese government represented by the JICA Organization are doing great work to complete the Basrah Refinery Development / FCC Project by adopting the latest technologies and designs provided by Axens. With the construction contract signed with the Japanese company JGC on October 1, 2020 and then activated on February 15, 2021, the project activities started according to the agreed schedule. Among other developments, we are pleased to complete this vital and important project that supports the production of oil derivatives meeting international standards and environmental requirements adopted in this field and relieves the burden of oil products imports."

(Source: Axens)

By John Lee.

Prime Minister Mustafa Al-Kadhimi has laid the foundation stone for the South Refineries Company (SRC)'s new Fluid Catalytic Cracking (FCC) complex at Basrah Refinery.

The project will be built by Japan's JGC Corporation, and will increase refinery capacity by 55,000 barrels per day (bpd).

It will be funded by a loan from the Japan International Cooperation Agency (JICA).

More information here, here and here.

(Sources: Iraqi Ministry of Oil, Office of the Iraqi Prime Minister)

By John Lee.

Iraq's Ministry of Oil has signed an outline agreement with a Chinese consortium for the development of the Dhi Qar refinery.

A Ministry official described the signing of the initial principles agreement as an important step forward, and a prelude to the signing of the final investment contract for the Dhi Qar refinery project, which will have a capacity of 100,000 barrels per day (bpd).

The Director General of the Southern Refineries Company (SRC), Hussam Wali, said that the final signature of the contract will be made "after the completion of the economic model of the investment contract", and it is hoped that this will take place within three months.

The consortium consists of Chinese state-owned arms manufacturer Norinco (which owns ZhenHua Oil), PowerChina (Power Construction Corporation of China), CNEC (China Nuclear Engineering & Construction?) and the UAE Company for Middle Services Ltd.

The refinery contains units for hydrogenation, benzene improvement, isomerization, catalytic cracking (FCC), a (CCR) unit, an asphalt unit, and an electric power production unit.

(Source: Ministry of Oil)