South Korea’s Hyundai Engineering and Construction Company (Hyundai E&C) has started trial gasoline production at the Basra Refinery in southern Iraq after completing major construction works. The milestone marks a major step in Iraq’s efforts to modernize its refining capacity.
Therefore, Prime Minister Mohammed Shia al-Sudani, Oil Minister Hayan Abdul Ghani, South Korean Ambassador Lee Joon-il, and Hyundai E&C Plant Division Head Ryu Sung-an attended the October ceremony. Officials hailed the project as a key development for Iraq’s energy infrastructure.
Hyundai awarded the $1.4 billion project in 2020 and executed it in partnership with Japan’s JGC Corporationunder an EPC turnkey contract. The upgraded refinery, located about 450 kilometers southeast of Baghdad, processes heavy oil residues into high-value products such as gasoline and diesel. Once fully operational, the facility will produce up to 24,000 barrels of gasoline per day.
Hyundai completed the project in 60 months without any accidents, demonstrating its commitment to global safety and quality standards. According to the Oil Ministry, the refinery upgrade will help reduce gasoline importsand boost national revenue by using local crude oil.
Despite its massive oil reserves, Iraq still imports large volumes of refined fuel due to limited refining capacity and damage to older plants. The Basra Refinery expansion is part of a national plan to achieve self-sufficiency in fuel production.
A Hyundai E&C representative emphasized the company’s “successful implementation” as proof of its “trusted partnership with Iraq.” Hyundai has worked in Iraq since 1978, completing nearly 40 projects worth over $12 billion. The company now plans to expand into eco-friendly and high-value industrial projects across the Middle East.