Iraq lets contract for Basra refinery revamp

South Refineries Co. (SRC), a part of Iraq’s Ministry of Oil, has let a project management consultancy (PMC) contract to Technip SA, Paris, and Japanese engineering consultant UNICO International Corp., Tokyo, for the modernization and upgrading of its 140,000-b/d Basra refinery in southern Iraq.

The PMC contract, awarded on a reimbursable basis, covers engineering, procurement, construction, commissioning, start-up, and warranty management phases of the project, Technip said.

Designed to increase the Basra refinery’s gasoline production capacity, the modernization project will involve installation of a fluid catalytic cracking unit and associated units, including a visbreaker, hydrotreater, and hydrogen plant among others, Technip said.

The modernization project, which has been funded by the Japanese International Cooperation Agency, is part of the Iraqi government’s plan to meet increasing future demand for hydrocarbon products, Technip said.

A value of the contract was not disclosed.

SRC previously awarded a contract to Shaw Group Inc., Baton Rouge, La., to provide a feasibility study for rehabilitation of the Basra refinery, which was to include an assessment of the refinery’s then-current condition, as well as an estimate of engineering, equipment supply, and construction services required to improve its operation. Shaw said in a Dec. 13, 2011, release.

The US Trade and Development Agency approved a grant of more than $500,000 to SRC to fund project’s 2011-12 feasibility study as part of a strategic framework agreement with Iraq that includes a commitment to help promote the development of the country’s oil sector as well as the rehabilitation of its vital facilities, according to a release from the US embassy in Baghdad on July 21, 2011.

Alongside its modernization plans for the Basra refinery, Iraq has a longer-term plan to construct four refineries in an effort to add 750,000 b/d of refining capacity. These projects include the 140,000-b/d Karbala refinery (OGJ Online, Mar. 27, 2015; Feb. 26, 2014), the 300,000-b/d Nassiriya refinery, and two additional refineries in Maysan and Kirkuk, each with a capacity of 150,000 b/d (OGJ Online, June 4, 2013).

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