JGC Holdings Corporation announced that JGC Corporation, which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, and JGC Arabia as a Saudi Arabian subsidary of the JGC Group, have jointly been awarded by Saudi Aramco the EPC contract for the Zuluf AH Increment Central Processing Facilities.
Saudi Aramco is promoting the Zuluf Arab Heavy Development Program to meet growing global energy demand and is planning to increase production based on an additional 600 MBCD of AH crude.
JGC has received the orders for the construction projects for the core onshore GOSP and Utility Facilities including Water Injection Facilities.
In winning this order, in addition to the relationship of trust with Saudi Aramco founded on our track record of successfully executing projects in Saudi Arabia, the project execution plan to simultaneously execute the two packages of onshore GOSP and Utility Facilities was highly evaluated.
Going forward, the JGC Group will continue to aim to win orders for projects planned by Saudi Aramco, realizing job creation and technology transfer to many Saudi Arabians through the execution of such projects, thereby contributing to the further development of the Kingdom of Saudi Arabia.
JGC Holdings Corporation announced that JGC Corporation, which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, has been received the Letter of Award for the Basrah Refinery Upgrading Project for an Iraqi oil refining company under the Iraqi Ministry of Oil. Details of the project are as follows.
1. Client
South Refineries Company(Oil refining company under the Iraqi Ministry of Oil)
2. Construction location
Basrah, Republic of Iraq(Approx. 550 km SE of the capital of Baghdad)
3. Primary equipment(processing abilities)
Fluid catalytic cracking unit (34,500 barrels/day), vacuum distillation unit (55,000 barrels/day), diesel desulfurization unit (40,000 barrels/day), etc.
4. Contract services
Engineering, procurement, construction and commissioning
5. Contract type
Lump sum contract
6. Order amount
Approx. 400 billion JPY
7. Scheduled completion
2025
Iraq is one of the world’s leading oil-producing countries, with a confirmed crude oil reserve of 145 billion barrels and a daily crude oil production of 4.41 million barrels. However, the two refineries currently in operation were constructed in the 1970s and their production capacity has decreased due to war damage and deterioration. Unable to meet domestic demand for petroleum products, Iraq has to import petroleum products such as gasoline.
This upgrading of the Basrah refinery will newly install, on land adjacent to the existing Basrah refinery, fluid catalytic cracking unit, vacuum distillation unit, and diesel desulfurization unit, etc., thereby increasing production to 19,000 barrels/day of gasoline and 36,000 barrels/day of diesel fuel, making it possible to reduce the gap in supply and demand for petroleum products. In addition, the petroleum products produced at the modernized refinery will meet international environmental standards and it is expected that they will contribute to reducing the environmental impact. This project is positioned as spearheading the modernization and sophistication of Iraq’s oil refining sector.
Funding for the project will be procured through Japanese ODA loans from the Japan International Cooperation Agency (JICA), and is the largest-scale reconstruction assistance from Japan since the 2003 Iraq War.
In carrying out this project, the Group plans to conduct skills training for more than 1,000 Iraqis and to hire approximately 7,000 skilled Iraqi workers. Furthermore, it is expected that more than 2,000 operating personnel jobs will be created after the project’s completion, which will contribute to solving the unemployment problem in Iraq.
The Group completed a power station reconstruction project in Iraq in 2013, and this is the Group’s second project in Iraq. The Group will contribute to the reconstruction and economic development of Iraq through the successful completion of this project.
