Signing Ceremony of the Exchage of Notes for Basrah Refinery Upgrading Project (II)
1. On 16 June 2019, Mr. Naofumi Hashimoto, Ambassador of Japan to the Republic of Iraq, and Mr. Fuad Mohammed Hussein, Deputy Prime Minister for Economic Affairs and Minister of Finance of the Republic of Iraq, signed and exchanged notes concerning the provision of yen loan for “Basrah Refinery Upgrading Project (II)” in Baghdad. The loan amounts to 110 billion Japanese Yen, approx 1,002 million US dollars, which is considered one of the largest amount provided by Government of Japan for one yen-loan project in the Middle East and North Africa.
2. Overview of the project
(1) This project will increase oil production by constructing a new refining plant (Fluid Catalytic Cracking (FCC) complex) at the existing Basrah refinery in Basrah Governorate in southern Iraq.
(2) The project aims to increase the quality of oil products and to close the gap between supply and demand. In addition, the new plant will ease the environmental burden introducing Light Gas Oil Hydro Desulfurization Unit (LGOHDT) with technology transfer.
(3) Once the project is implemented, Basra refinery will be the only refinery that produces high value - added petroleum products such as gasoline and diesel, which will be in line with international environmental standards. Ultimately, it is expected to contribute to the economic and social recovery of Iraq.