Iraq, Japan agree on loan to develop Basra Refinery
The Iraqi Minister of Finance Taif Sami and Chargé d’Affaires of the Japanese Embassy in Baghdad Masamoto Kenichi. Photo: Iraqi News Agency
Baghdad (IraqiNews.com) – The Iraqi Minister of Finance, Taif Sami, signed on Wednesday a memorandum with Chargé d’Affaires of the Japanese Embassy in Baghdad, Masamoto Kenichi, regarding a Japanese loan to develop Basra Refinery, according to the Iraqi News Agency (INA).
On December 28, Japan provided a new support to Iraq to assist with expanding the refining capacity, enhancing the effectiveness of oil sector, and supporting socioeconomic development, the Japanese Embassy mentioned in a statement.
A signing ceremony was held to sign Basra Refinery Upgrading Project, at an amount of 120 billion yen (approximately 1.2 billion USD), the Japanese Embassy clarified.
Basra Refinery Upgrading Project is considered the biggest Japanese project, and it will upgrade the existing Basra Refinery by installing a new plant called Fluid Catalytic Cracking (FCC) Complex, which can convert residual oil from the existing plants into high-value oil products, the statement of the Japanese Embassy explained.
Once the project is implemented, Basra Refinery will be the first-ever FCC complex in Iraq that produces high added value oil products such as gasoline and diesel in line with the international environmental standards, the statement elaborated.
The Japanese government intends to continue supporting Iraq through providing humanitarian and stability assistance as well as supporting the infrastructure rehabilitation, the statement added.