Iraq’s council of ministers on 12 September instructed South Refineries Company (SRC) to “withdraw” the EPC contract for a new 70,000 b/d CDU at the 350,000 b/d Basrah Refinery from Czech firm TechnoExport. SRC will instead sign direct contracts with TechnoExport’s existing sub-contractors, Japan’s Yokogawa and Hitachi in addition to a firm named as “Inromov” as “part of the final project stages.”
The decision brings to end a long saga with the Czech firm which unilaterally decided to halt work due to financial disputes over reimbursement of pre-paid taxes. It is unclear whether the dispute has been settled. (CONTINUED - 208 WORDS)