AirSada wins Medevac Contract with JGC in Iraq

By John Lee.

The Turkish-based private jet charter company AirSada has won a contract to supply medical evacuation (medevac) services to Japan's JGC Corporation in Iraq.

JGC is the main contractor for the major upgrading project at South Refineries Company's (SRC) Basra refinery.

The contract with AirSada, which runs to September 2025, includes air ambulance and medical treatment services.

It was signed by Mr Tolga Urcu, CEO of AirSada, and Mr Hiroto Ogura,  Project Manager for JGC at SRC Basra.

(Source: AirSada)

The post AirSada wins Medevac Contract with JGC in Iraq first appeared on Iraq Business News.

JGC happy with Progress at Basra Refinery

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)

The post JGC happy with Progress at Basra Refinery first appeared on Iraq Business News.

Japan extends $300m Loan for Basra Refinery

By John Lee.

Japan's Minister for Foreign Affairs, Motegi Toshimitsu, visited Iraq on Saturday, meeting with Foreign Minister Fuad Hussein, Prime Minister Mustafa Al-Kadhimi, and President Barham Salih.

Minister Motegi announced that Japan intends to extend the "Basrah Refinery Upgrading Project (Phase 3)" Yen loan project (up to the amount of 32.7 billion yen) [$300 million], and expressed his hopes that this project would contribute to providing the stable supply of energy and to creating jobs in Iraq. In response, Minister Hussein expressed his gratitude.

Minister Motegi added that he appreciates the publication of the "White Paper for Economic and Financial Reforms", and stated that Japan looks to support Iraq's reform efforts together with the international community through the "Iraq Economic Contact Group."

Both sides also exchanged views on measures to prevent the spread of COVID-19 and means to improve the business and investment environment in Iraq.

(Source: Govt of Japan)

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Iraqi PM lays Foundation Stone for $4bn Refinery Project

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)

The post Iraqi PM lays Foundation Stone for $4bn Refinery Project first appeared on Iraq Business News.

JGC signs Contract for Basra Refinery Upgrade

By John Lee.

Yesterday (Thursday), the South Refineries Company (SRC) and Iraq's Ministry of Oil (MOO) signed the contract with Japan's JGC Corporation to start construction of a new Fluid Catalytic Cracking (FCC) Complex at Basrah Refinery.

The project is funded by the Japan International Cooperation Agency (JICA)'s ODA (Official Development Assistance) loan project.

The contract ceremony was successfully held at the Governmental Palace with the presence of H.E. Mr. Ihsan Abdul Jabbar Ismael, Minister of Oil, H.E. Dr. Eng. Khaled Battal Najim Abdullah Al-Jujifi, Minister of Planning, Mr. Husam Hussein Weli, Director General, SRC, Mr. Shu Nakagawa, Charge d'Affaires ad interim, Embassy of Japan in Iraq, Mr. Yutaka Yamazaki, President of JGC Corporation, and Mr. Kei Toyama, Chief Representative of JICA Iraq Office.  At the sideline of the ceremony, H.E. Prime Minister Mustafa Al-Kadhimi hosted the meeting with the participants.

For this project named "Basrah Refinery Upgrading Project (I)(II)", JICA has so far concluded three loan agreements for:

  1. engineering services loan in the amount of JPY 2,079 million [$20 million];
  2. first tranche loan in the amount of JPY 42,435 million [$403 million]; and,
  3. second tranche loan of JPY 110,000 million [$1.04 billion].

This project is the largest Japanese ODA loan project in Iraq. Under the assistance of JICA's concessional loans (low interest rate at 0.20% and the repayment period of 40 years including 10-year grace period). It is expected to be completed in 2025.

According to a statement from JICA, the project to construct Iraq's first-ever FCC Complex will unleash the potential of Iraq's refining sector to produce the larger volume of the high-value outputs, promote the transfer of refining technologies from Japan and help save valuable foreign currencies to import huge amount of fuels.

It says the new plant will also reduce sulfur content in the oil products in accordance with the international environmental standards, adding:

"The project is expected to pave the way for energizing private sector involvement in the downstream of Iraq's energy industry and provide economic and employment opportunities for the people of Iraq, especially in Basrah.

"JICA looks forward to the collaborative efforts made by Iraqi government and the contractor to overcome every challenge to be encountered during project implementation, including the ongoing COVID-19 pandemic.  JICA reaffirms its commitment to making every possible means to support in delivering the project benefits and realizing its effectiveness."

(Source: JICA)

The post JGC signs Contract for Basra Refinery Upgrade first appeared on Iraq Business News.

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)

Iraq to Build 5 New Refineries

By John Lee.

The Iraqi Ministry of Oil has reportedly announced that it will select a number of international investment companies to build five new refineries around the country:

  1. Kirkuk with a capacity of 70,000 barrels per day (bpd);
  2. Wasit capacity of 140,000 bpd;
  3. Nasiriyah capacity of 140,000 bpd;
  4. Basra card 140,000 bpd; and
  5. al-Faw capacity of 300,000 bpd.

According to Asharq Al-Awsat, the Ministry is financing Karbala refinery which is about 78 percent completed, and once it is fully constructed, it will provide about 9 million liters per day of high-quality gasoline, in addition to various oil derivatives in accordance with international standards.

(Source: Asharq Al-Awsat)

(Pictured: Baiji Oil Refinery)

Iraq to Build 5 New Refineries

By John Lee.

The Iraqi Ministry of Oil has reportedly announced that it will select a number of international investment companies to build five new refineries around the country:

  1. Kirkuk with a capacity of 70,000 barrels per day (bpd);
  2. Wasit capacity of 140,000 bpd;
  3. Nasiriyah capacity of 140,000 bpd;
  4. Basra card 140,000 bpd; and
  5. al-Faw capacity of 300,000 bpd.

According to Asharq Al-Awsat, the Ministry is financing Karbala refinery which is about 78 percent completed, and once it is fully constructed, it will provide about 9 million liters per day of high-quality gasoline, in addition to various oil derivatives in accordance with international standards.

(Source: Asharq Al-Awsat)

(Pictured: Baiji Oil Refinery)

$1bn Japanese Financing for Basrah Refinery

JICA to Support Iraq’s Reconstruction and Revitalization through Upgrade of Basrah Refinery

Signing of Japanese ODA Loan Agreement for Iraq

On 16 June, 2019, the Japan International Cooperation Agency (JICA) and the Iraqi Government signed a loan agreement at Ministry of Finance in Baghdad.

The ODA (Official Development Assistance) loan amounting to JPY 110,000 million (approximately USD 1 billion) will be used for Basrah Refinery Upgrading Project. The loan agreement was signed by H.E. Mr. Fuad Mohammed Hussein, Minister of Finance and Masayuki Hirosawa, Chief Representative of JICA Iraq Office, in the presence of H.E. Mr. Hamid Younis Salih, Deputy Minister of Oil and H.E. Mr. Naofumi Hashimoto, Japanese Ambassador to Iraq. This concessional ODA loan aims to support the Government of Iraq in its efforts to reconstruct the country and revitalize its economy.

The loan named “Basrah Refinery Upgrading Project (II)” is the second tranche loan for Basrah Refinery Upgrading Project, one of the mega projects known in the region. For the same project, JICA previously concluded two loan agreements for (i) the engineering services loan in the amount of JPY 2,079 million and (ii) the first tranche loan in the amount of JPY 42,435 million.

The entire project aims to increase the quantity and quality of oil products including gasoline, diesel and kerosene, by installing a new refining plant called Fluid Catalytic Cracking (FCC) Complex in Basrah Refinery, which is one of the biggest oil refineries currently operational in Iraq. It will be implemented by South Refineries Company, Ministry of Oil.

Iraq has the world’s fifth-largest proven oil reserves and is currently OPEC’s second-largest producer. Nevertheless, most of the existing refineries in the country have been shut down or decreased their production capacity, suffered from damages and deterioration in the previous decades of conflicts. Many of the plans to construct new refineries have faced with challenges and delays and are yet to achieve substantial increase of the refining capacity.

On the contrary, the ongoing reconstruction efforts in liberated areas and the revitalization of socio-economic activities across the country have prompted huge demand for fuels, such as gasoline and diesel. As a result, despite being one of the largest oil producers, Iraq has no choice but to import the significant amount of oil products from neighboring countries so as to meet the demand for transport, power generation and industrial production.

Against this backdrop, the project to construct Iraq’s first-ever FCC Complex will increase the volume of the high-value added oil products, promote the transfer of refining technologies from Japan and help save valuable foreign currencies to import huge amount of fuels. The new plant will also reduce sulfur content in the products in accordance with the international environmental standards. Furthermore, the project is expected to pave the way for energizing private sector involvement in the downstream of Iraq’s energy industry and provide economic opportunities for the people of Iraq, especially in Basrah.

The loan is very concessional with the low interest rate and long repayment period: the interest rate of 0.20% and the repayment period of 40 years including 10-year grace period.

(Source: JICA)

Data Portfolios Available for Basra Refinery

The Ministry of Oil has announced the availability of data portfoliso to develop the Basrah refinery.

The closing date of selling data portfolios is at the end of the work hours of Sunday the 19th of November 2017, and the receipt of the documents from the companies which would like to fund and execute the above mentioned project must be to the end of the work hours of Thursday the 4th of January 2018.

More details here.

The presentation of the documents should be to the studies, planning & follow-up directorate directly or via the Emails:   studies.oil@oil.go.iq    or   studies@oil.gov.iq

(Source: Ministry of Oil)