Baghdad (IraqiNews.com) — The Iraqi Ministry of Oil announced on Friday, August 14, 2026, an agreement with Japan’s JGC Corporation to officially resume construction and operational work on the massive Fluid Catalytic Cracking (FCC) complex at the South Refineries Company (SRC) in Basra.
The deal follows negotiations led by a ministerial committee under directives from Oil Minister Basim Mohammed Khudair Al-Abadi, chaired by Ministry Advisor Hamid Younis alongside SRC Director General Hussam Hussein Wali. Under the finalized agreement, JGC remobilized its technical personnel to the Basra site starting August 10 to prepare processing units for full design-capacity operations, advancing Iraq’s target of refined petroleum self-sufficiency.
The FCC complex at the Shuaiba refinery in Basra is among Iraq’s most critical downstream modernization projects, designed to upgrade heavy vacuum gas oil into premium fuels.
By adding 12 million combined liters of daily gasoline and diesel alongside substantial LPG yields, the facility will significantly curtail state spending on imported refined fuels and support domestic market stability.