Korean builders face risk of losing $755 mil. in unpaid Iraq refinery project
Hyundai Engineering & Construction (E&C) and three other local builders are at risk of losing more than 1 trillion won ($755 million) tied up in a major Iraqi refinery project, according to documents obtained by a ruling party lawmaker Friday. Hyundai E&C, GS Engineering & Construction, SK ecoplant and Hyundai Engineering have yet to collect 625.4 billion won in outstanding payments and are…
Korean construction firms Hyundai Engineering & Construction (E&C) and three other local builders face the potential loss of over $755 million due to unpaid funds tied to a significant Iraqi refinery project, according to documents revealed by a ruling party lawmaker. The firms, which include GS Engineering & Construction, SK ecoplant, and Hyundai Engineering, have yet to receive 625.4 billion won in outstanding payments and are at risk of forfeiting an additional 420.2 billion won in performance guarantees.
They have been demanding compensation for their work on the $6.8 billion Karbala Refinery Project, which is owned by Iraq's state-owned State Company for Oil Projects (SCOP). The project, aimed at processing 140,000 barrels of crude oil per day, has been delayed by a range of factors, including Iraq's internal conflict and the COVID-19 pandemic.
Despite handing over the refinery's facilities to the Iraqi side in December 2023, SCOP has refused to make the payments, attributing the delay to outstanding defects and missing tax-related documents.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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