- Supporting economic and social development in Iraq with a prompt start in the largest Middle East ODA project
JGC Holdings Corporation is pleased to announce that in addition to EPCC services provided by overseas EPC operating company JGC Corporation in Basra refinery upgrading underway since February 2021 for the state-owned South Refineries Company under the auspices of the Iraqi Ministry of Oil, technical transfer service for refinery operation has also been ordered. Details are as follows.
Although Iraq is a world-leading oil producer, production capacity of 1970s-era refineries has declined due to war damage and deterioration, which, combined with population growth, has prevented the country from meeting domestic demand for petroleum products and required Iraq to import of gasoline and other products. With only two refineries currently in use, it is difficult to secure skilled plant operators. Ensuring a smooth startup and stable production after construction has been a pressing issue.
As the largest JICA-financed ODA project in the Middle East, this refinery upgrading project is being jointly planned and carried out by the governments of Japan and Iraq to reduce the significant gap between domestic supply and demand of petroleum products and accelerate post-war recovery. It involves the construction of fluid catalytic cracking, vacuum distillation, and diesel desulfurization units next to an existing refinery, with the work scheduled for completion this year.*
Under the additional TTS contract, JGC Corp. operating personnel will work with Southern Refineries to start operations. JGC will provide operational support to ensure a prompt yet safe startup at the advanced, environmentally conscious facility. JGC will also help ensure efficient and stable operation.
We believe a key factor in receiving the TTS contract was the respect earned by the JGC Group from the client and Iraqi government for superior JGC project execution capabilities that have led to a successful capital investment plan through effective management of a variety of regional and global risks associated with the pandemic and heightened geopolitical risks in Ukraine and the Middle East.
Bringing this project to a successful close and fulfilling TTS duties will enable the Group to further contribute to economic and social recovery in Iraq.
Details:
1.Client: South Refineries Company(Oil refining company under the Iraqi Ministry of Oil)
2.Site: Basra, Republic of Iraq (approx. 550 km SE of Baghdad)
3.Services: TTS for plant operations
4.Order Approx.: 30 billion yen
5.Completion: December 2026
*JGC Holdings press release, August 2020
About JGC
JGC is a global engineering, procurement, and construction firm committed to delivering a complete range of project services to our clients, while providing safe and cost-effective project execution. Since its founding in 1928, JGC has executed some 20,000 projects across the globe for the refining, LNG, petrochemical, power, pharmaceutical, and mining industries. From conception to commissioning, we partner with our clients to deliver successful engineering, procurement, and construction programs.
About South Refineries Company
South Refineries Company was founded in 1969 through the establishment of Basra refinery, which actually began production on 1974 by establishing (Refining Unit No. 1), which is one of the major manufacturing units in the country where the production of oil derivatives using the latest scientific methods and advanced technology in production, which resemble their high quality products, including foreign and meets the requirements of consumers. And continue to modernize and expand the company and diversify their products and improving quality, it has been done by establishment of a refinery and the second unit to improve gasoline and oil refinery and the liquidator of Dhi Qar, Maysan and the liquidator is currently working on the company to obtain a certificate of quality performance (ISO).