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.*

*JGC Holdings press release, August 2020
JGC Receives Order for Refinery Upgrading Project in Iraq
(https://www.jgc.com/en/news/2020/20200812_1.html)

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 engineers with South Refineries personnel in Iraq, where summer temperatures exceed 50°C

Employees of South Refineries personnel and JGC engineers discussing safe and efficient plant operations

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