Iraq has signed a contract with PowerChina and Norinco International to build the planned $3bn oil refinery at the port of Faw, near Basra.

The official signing of the contract comes three months after the contract was awarded to the two Chinese companies.

The scope of the project includes a crude distillation unit, isomerisation units, hydrocrackers, flue gas desulphurisation units, a LPG plant, pipelines, storage tanks, buildings and instrumentation.

PowerChina and Norinco were informed in January that they had been selected to undertake the project, according to projects tracking service MEED Projects.

The project is being developed using a build-operate-transfer (BOT) model.

The tender for the Faw refinery was launched in 2017 and under current plans the facility will be completed before the end of 2020.

Opec producer Iraq is attempting to revamp its refining capacity and upgrade energy infrastructure that suffered extensive damage when the Islamic State overran oil fields and facilities in 2014.