Posted on

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.

Posted on

Eni to Invest $4bn in Iraqi Refinery?

By John Lee.

Italian oil company ENI is reported to be in talks to build a $4-billion, 300,000-bpd refinery near Iraq’s Zubair oil field.

S&P Global quotes Oil Minister Ihsan Ismaael [Ahsan Abdul-Jabbar Ismail] as saying that that the first phase, with a capacity of 150,000 bpd, would be operational by 2025.

The Minster reportedly added that the Zubair field, in which Eni holds a stake, is expected to produce 700,000 bpd by 2027.

Click here to read the full article.

(Source: S&P Global)

The post Eni to Invest bn in Iraqi Refinery? first appeared on Iraq Business News.

Posted on

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)

Posted on

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)

Posted on

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)

Posted on

Refineries Blockaded as Protests Continue

By John Lee.

Anti-government protesters reportedly blocked the entrance to the Nassiriya oil refinery on Wednesday.

Sources told Reuters that protesters blocked tankers from entering the refinery, causing fuel shortages across Dhi Qar province.

The refinery has capacity of 30,000 barrels per day (bpd), but has recently been producing only 15,000-20,000 bpd.

Anadolu Agency also reported that protesters have closed the Al-Shanafiyah oil refinery, south of the province of Diwaniya.

The source said that hundreds of protesters prevented oil trucks from entering or exiting the facility.

(Sources: Reuters, Middle East Monitor)

Posted on

Refineries Blockaded as Protests Continue

By John Lee.

Anti-government protesters reportedly blocked the entrance to the Nassiriya oil refinery on Wednesday.

Sources told Reuters that protesters blocked tankers from entering the refinery, causing fuel shortages across Dhi Qar province.

The refinery has capacity of 30,000 barrels per day (bpd), but has recently been producing only 15,000-20,000 bpd.

Anadolu Agency also reported that protesters have closed the Al-Shanafiyah oil refinery, south of the province of Diwaniya.

The source said that hundreds of protesters prevented oil trucks from entering or exiting the facility.

(Sources: Reuters, Middle East Monitor)

Posted on

Rehabilitation of Al-Sumoud Refinery in Baiji

By John Lee.

Iraq’s Minister of Oil Thamer Ghadhban has announced the rehabilitation of the Al-Sumoud refinery in Baiji.

He said initial production rates are running at 70,000 barrels per day (bpd).

(Source: Ministy of Oil)

Posted on

Rehabilitation of Al-Sumoud Refinery in Baiji

By John Lee.

Iraq’s Minister of Oil Thamer Ghadhban has announced the rehabilitation of the Al-Sumoud refinery in Baiji.

He said initial production rates are running at 70,000 barrels per day (bpd).

(Source: Ministy of Oil)

Posted on

Iraq, Oman to Cooperate on Oil and Gas

By John Lee.

Iraq and Oman have signed a memorandum of understanding (MoU) on cooperation in the oil and gas sector.

Both sides will investigate the construction of oil storage facilities in both countries, the export crude oil to Oman, and the import of oil products back into Iraq.

They will also consider building a shared oil refinery in Oman.

(Source: Ministry of Oil)