(EnergyAsia, December 15 2011, Thursday) — The Shaw Group Inc, a US engineering company, said it has been awarded a contract by Iraq’s state-owned South Refineries Company to provide a feasibility study for the rehabilitation of its 140,000 b/d refinery in Basra city.

The study will assess the refinery’s condition and estimate the engineering, equipment supply and construction services required to improve its operation.

Shaw Group said the study is funded by the United States Trade and Development Agency (USTDA) through a grant to the South Refineries Company, which is owned by Iraq’s Ministry of Oil. This is the first grant the agency has provided directly to an Iraqi entity, marking the USTDA’s support of Iraq’s long-term economic development.

James Glass, president of Shaw’s Energy & Chemicals Group, said:

“This study will help to promote the development of Iraq’s oil business and modernise vital facilities. This is Shaw’s fourth refining project in Iraq, reinforcing our continuing commitment to the Middle East region.”

In Iraq, Shaw is conducting feasibility studies and front end engineering and design (FEED) for two grassroots 150,000 b/d refineries near the cities of Maissan and Kirkuk, for the Oil Ministry. The FEED work includes all process units, offsite facilities and utilities for both refineries.

Through a fluidised catalytic cracking alliance, Shaw said it and partner Axens are providing a process design package for a 30,000 b/d residual fluidised catalytic cracking (RFCC) unit at Midland Refineries Company’s refinery in Daura.

Shaw said the undisclosed value of the contract will be included in its Energy & Chemicals segment’s backlog of unfilled orders in the first quarter of fiscal year 2012.