![Overview of the Basra refinery upgrade site in Iraq. [Photo: Hyundai E&C]](https://image.ajunews.com/content/image/2025/10/28/20251028133517832139.jpg)
SEOUL, October 28 (AJP) - South Korea's Hyundai Engineering & Construction said on Tuesday that it has completed key construction work at the Basra refinery in southern Iraq and begun test operations.
Awarded to Hyundai E&C in 2020, the 2 trillion won ($1.4 billion) project is expected to be fully completed early next year. Located about 450 kilometers southeast of Baghdad, the upgraded facility will produce 24,000 barrels of gasoline per day using residues from crude oil refining.
The South Korean builder held a ceremony on Oct. 25 to commemorate the first gasoline production from the site. The event was attended by Iraqi Prime Minister Muhammad Shia’ al-Sudani, Oil Minister Hayan Abdul Ghani, South Korean Ambassador to Iraq Lee Joon-il, and Ryu Seong-an, head of Hyundai E&C’s plant division.
The modernization converts heavy oils such as bunker C and asphalt into higher-value gasoline and diesel. Hyundai E&C carried out the project on a turnkey basis — encompassing design, procurement, construction, and testing — in partnership with Japan’s JGC Corporation.
Despite Iraq’s vast oil reserves, among the world’s five largest, the country has long struggled with outdated refining capacity, forcing it to import large volumes of gasoline. Once fully operational, the Basra refinery expansion is expected to strengthen Iraq’s energy self-sufficiency and boost profitability.
“With the Iraqi government’s continued support, we hope to take part in future reconstruction and high-value plant projects in Iraq," Hyundai E&C said in a press release.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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