Tokyo agrees to lend Iraq $2.1 bn to develop Basra refinery

(IraqiNews.com) Basra – Basra Provincial Council announced that the Japanese government has agreed to lend 2.1 billion US dollars to Iraq for developing Basra refinery and added that the loan will be repaid in 40 years with an interest rate of 2 per cent.

Head of Oil and Gas committee in the council Ali Shaddad in a statement said, “The Japanese government has agreed to lend Iraq a loan of 2.1 billion US dollars to execute a number of projects for rehabilitating Basra Oil Refinery. The loan will be repaid in 40 years with a 2 per cent interest rate.”

Shaddad added, “The allocated loan will be used to execute a number of strategic and vital projects in Basra refinery and these projects will be completed by 2020. These projects include oil gas hydrogenation project with a capacity of 20000 barrels per day.”

“These projects are designed to bring production at the refinery to about 4,500 tons of reformulated gasoline, and about 27 thousand barrels of fuel oil and 40000 barrels of hydrogenated oil gas per day, in addition to the production of 500 tons of liquid gas,” Shaddad continued.