JGC Holdings Corporation announced today that JGC Corporation, which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, participated in the contract signing ceremony for the Basrah Refinery Upgrading Project held in Baghdad, Iraq on October 1. JGC received the Letter of Award for this project in August 2020 by Iraq oil refining company under the Iraqi Ministry of Oil (South Refineries Company). The signing ceremony was attended by Iraqi Minister of Oil Ihsan Abdul Jabbar Ismail, Minister of Planning Khalid Najim, Japanese government officials including the Japanese Embassy in Iraq, and President Yutaka Yamazaki of JGC Corporation.

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. Although Iraq is currently one of the world's leading oil-producing countries, the two refineries currently in operation, which were constructed in the 1970s, are experiencing a decline in production capacity due to war damage and deterioration.

Unable to meet domestic demand for petroleum products, Iraq has to import petroleum products such as gasoline. The completion of this project will increase the production of 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, and in turn will greatly contribute to the economic recovery of Iraq.

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 will contribute to the reconstruction and economic development of Iraq through the successful completion of this project.

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).