Basra FCC Unit Ready for Restart Pending Return of Japanese Contractor

Iraq’s South Refineries Company (SRC) said the Fluid Catalytic Cracking (FCC) unit at the Basra refinery is fully ready for operation, with the project awaiting the return of Japanese contractor JGC Corporation (JGC) to complete the final stages before full production can resume.

SRC Director General Hussam Hussein Wali told local Arabic language news website Almirbad that the project is technically complete and has not suffered any damage or operational issues, adding that restarting production depends on JGC’s return to Iraq.

Basra Refinery Upgrading Project was launched in 2012 as a US$4.8 billion Japanese yen loan project, comprises rehabilitation and upgrading of the Basra Refinery to produce 24,000 barrels of gasoline per day from the residual oil, and construction of the FCC unit. The project has been built by a joint venture led by JGC in partnership with South Korea’s Hyundai Engineering & Construction.

According to Wali, JGC suspended its work and withdrew its personnel from Iraq in recent months after Japan raised its security risk assessment amid regional military developments.

He noted that JGC was the last foreign contractor to leave Basra during the security situation.

He said the project remains under JGC’s responsibility and has not yet been formally handed over, as commissioning and start-up activities were still underway and the final acceptance process had not been completed.

The FCC unit had entered the commissioning phase in October 2025 and produced approximately 1.5 million litres of gasoline per day before the regional conflict interrupted activities.

Wali said meetings have been held outside Iraq to persuade the Japanese contractor to return, while efforts are underway to address the company’s requirements.

He expects the outstanding issues to be resolved within the next few days, paving the way for visa issuance and the return of JGC personnel to resume work on the project.

During the shutdown, the company carried out preservation and maintenance works, including inspections of water storage tanks and checks of key systems to maintain operational readiness.

Wali said the FCC project is now ready to begin production immediately once JGC returns and resumes work at the refinery.