▲ Hosts an event attended by government officials at the Basra Refinery Upgrading Project site on November 25th (local time)

▲ Hyundai E&C continues to cement its leading position in the Middle East plant sector based on an overwhelming track record and top-tier project execution capabilities

Hyundai E&C has completed major work and entered the commissioning phase at the Basra Refinery Upgrading Project site in Iraq.

Hyundai E&C announced that on November 25th (local time), it held a ceremony to commemorate the first production of gasoline at the Basra Refinery Upgrading Project construction site in southern Iraq. The event was attended by key dignitaries, including Muhammad Shia' Al-Sudani, Prime Minister of Iraq; Hayan Abdul Ghani, Iraq's Minister of Oil; Lee Joon-il, the Korean Ambassador to Iraq; and Ryu Sung-an, Head of the Plant Business Division at Hyundai E&C.

This project, which Hyundai E&C was awarded in 2020, is a venture to construct an upgrading facility that will produce 24,000 barrels of gasoline per day from the residual oil (the petroleum residue from the crude oil refining process) of the refinery in Basra, a southern city located approximately 450 kilometers southeast of Iraq's capital, Baghdad. An upgrading facility is one that converts heavy oils, such as Bunker-C oil and asphalt from crude oil refining, into high-value-added products like gasoline or diesel. Hyundai E&C carried out this project, with a contract value of KRW 2 trillion, on a lump-sum turnkey basis, including design, procurement, construction, and commissioning, in collaboration with Japan's JGC Corporation.

Iraq, which boasts the world's fifth-largest oil reserves, has been making government-level efforts to expand and modernize its facilities, as much of its refining infrastructure is outdated or damaged, forcing the country to rely on gasoline imports. Once the Basra Refinery Upgrading Project becomes fully operational early next year, it is expected to significantly improve Iraq's energy self-sufficiency and the profitability of its crude oil production.

A Hyundai E&C official commented, “We are extremely pleased to have successfully produced our first batch of gasoline, having carried out this major, 60-month-long project with zero accidents by applying global-standard, advanced safety and quality systems.” The official added, “Following the completion of the upgrading facility project, the fact that we were also awarded the mega-scale Water Infrastructure Project (WIP) is a testament to the Iraqi government's complete trust in Hyundai E&C. We will continue to actively participate in reconstruction projects and high-value-added plant projects in Iraq in the future.”

Since entering the Iraqi market in 1978 with the Basra Sewage System Phase 1 project, Hyundai E&C has participated in the construction of approximately 40 major national facilities valued at around USD 12 billion, including the Northern Railway, the Karbala Refinery, and the Water Infrastructure Project. The company is now planning to step up its global market expansion by broadening its scope from oil and gas to include eco-friendly plants.