$4.5 billion oil refinery in Basra to be completed in two years

The Japanese Ambassador to Iraq, Futoshi Matsumoto, revealed on Tuesday that a large oil refinery under construction in the southern Iraqi governorate of Basra will be completed in two years.

Matsumoto told the Iraqi News Agency (INA) that JGC Holding Corporation, which is working to build the large oil refinery in Basra, invested $4.5 billion in the project.

The construction of the oil refinery requires large Japanese loans, which have great advantages, according to the Japanese Ambassador to Iraq.

Matsumoto elaborated that Japanese companies, including Komatsu, which specializes in the production of construction machinery, are eager to operate in Iraq.

Japanese loans are important to revitalize the Iraqi economy and give the government an opportunity to bring in more Japanese companies, especially in infrastructure and oil projects, according to Matsumoto.

Last August, Matsumoto and the Iraqi Minister of Finance, Taif Sami, together with the Japan International Cooperation Agency (JICA), signed and exchanged notes concerning the provision of the fifth batch of the Official Development Assistance (ODA) loan worth $1.4 billion for the Basra Refinery Upgrading Project, the biggest Japanese project in Iraq.

A statement issued by the Japanese embassy at that time mentioned that the project aims at saving foreign currencies spent on importing fuel, improving trade, reducing the fiscal deficit, and providing economic and employment opportunities for the people of Iraq.

The project will also contribute to modernizing Iraq’s energy industry and paving the way to attract the private sector to Iraq’s energy sector, in addition to reducing air pollution by reducing sulfur content in oil products.