Iraq’s Ministry of Finance announced on Sunday that it has signed a ¥60.04 billion ($380 million) loan agreement with the Japan International Cooperation Agency (JICA) to support the ongoing Basrah Refinery Upgrading Project in Basra Governorate.
The project, which is 93% complete, focuses on installing a new fluid catalytic cracking (FCC) complex to bring the refinery’s output in line with international environmental standards. Completion is anticipated by August 2025.
This marks the sixth tranche of Official Development Assistance (ODA) from JICA for the refinery, with previous loans including:
- October 2012: ¥42.4 billion
- June 2019: ¥110 billion
- October 2021: ¥32.7 billion
- December 2022: ¥120 billion
- August 2023: ¥203 billion
The project is a key element in Iraq’s strategy to modernize its oil and gas sector while reducing dependence on imported refined products.
In 2020, Japan’s JGC Corporation was awarded a ¥400 billion engineering, procurement, and construction (EPC) contract for the project by the South Refineries Company, under Iraq’s Ministry of Oil.
The upgrade will include a 34,500 barrels/day FCC unit, a 55,000 barrels/day vacuum distillation unit, and a 40,000 barrels/day diesel desulphurization unit, boosting production to 19,000 barrels/day of gasoline and 36,000 barrels/day of diesel fuel.
