JGC prepares Iraq refinery tenders

29 May 2023

 

Japan’s JGC Corporation is preparing contract tenders relating to the Basra refinery upgrade project in Iraq, which are scheduled to be issued over the coming months, according to industry sources.

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.

Since then, several contracts have been tendered and awarded, including two civil engineering contracts awarded to Turkiye-based companies in 2022.

One of the packages is being executed by Tekfen Construction. Ronesans Holding is implementing the second package.

Earlier this month, MEED revealed that both of these civil packages are now approaching completion.

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.


MEED’s June 2023 special report on Iraq includes:

> COMMENTIraq’s bumper budget holds promise and risk
> GOVERNMENT: Al-Sudani makes fitful progress as Iraq’s premier
> ECONOMYIraq hits the spend button
> UPSTREAM DEVELOPERSNo place like Iraq for international oil firms
> OIL & GASIraq’s energy sector steadily expands
> POWERIraq power projects make headway
> CONSTRUCTIONTransport plans underpin Iraq’s reconstruction

 

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Wil Crisp
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