Civil works for Iraq refinery upgrade near completion

23 May 2023

The two civil engineering contracts awarded to Turkiye-based companies as part of the Basra refinery upgrade project are approaching completion, according to industry sources.

One of the packages is being executed by Tekfen Construction, and Ronesans Holding is executing the second package.

Both of the contracts were awarded in 2022.

“Work on the civil packages is ongoing and is approaching completion,” said one source.

In November 2021, MEED reported that JGC Corporation was planning to stagger the tendering of subcontracts worth an estimated $500m to upgrade Iraq’s Basra refinery.

Upgrade works

JGC received the letter of award for the main contract for the Basra refinery upgrade project’s fluid catalyst cracking unit in August 2020. The official contract signing ceremony was held in Baghdad on 1 October 2020.

The client on the project is Iraq’s state-owned South Refineries Company (SRC) and the main contract is estimated to be worth $4.6bn.

The contract signed by JGC uses the engineering, procurement, construction and commissioning (EPCC) model.

EPCC works on the project began on 15 February 2021. The project site is about 12 kilometres east of Iraq’s southern city of Basra.

The upgrade project will install new facilities on land adjacent to the existing Basra refinery, including a vacuum distillation unit and a diesel desulphurisation unit.

In April 2021, France’s Axens won a contract in Iraq to provide four process technologies to SRC for the Basra refinery upgrade project.

The technologies that SRC selected are:

  • Diesel hydrotreatment unit (Prime-D)
  • Vacuum gasoil (VGO) hydrotreating unit
  • VGO fluid catalytic cracker unit
  • Oligomerisation unit (polynaphtha)

In addition, Axens will provide catalysts, adsorbents, proprietary equipment, training and technical services.

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Wil Crisp
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