
Iraq awards Hyundai E&C contract for Common Seawater Supply Project under GGIP
The decision, taken during the 32nd cabinet session chaired by Prime Minister Mohammed S. Al-Sudani, includes ratifying price negotiation results and bypassing procurement procedures under Government Contracts Implementation Instructions No. 2 of 2014, to address measures taken between 2018 and 2021 in accordance with financial authorities, the official statement noted.
The Common Seawater Supply Project (CSSP) is one of the four sub-projects of the $10 billion Gas Growth Integrated Project (GGIP) led by a consortium comprising TotalEnergies (45 percent), Basrah Oil Company (30 percent) and QatarEnergy (25 percent). The facility will be located between Khor Zubair and Umm Qasr ports and will have an initial capacity to treat 5 million barrels of seawater per day.
The filtered water will be piped to the Zubair, Rumaila, Majnoon, West Qurna and Ar-Ratawi fields to maintain reservoir pressure while replacing the fresh water currently drawn from the rivers and groundwater. This shift is expected to free up 250,000 cubic metres of freshwater daily for agriculture and irrigation and reduce water stress in the area.
In May 2019, South Korean media reported that Hyundai E&C had received a letter of intent from the Basrah Oil Company (BOC) for a $2.4 billion sea water supply facility. A Reuters report in June 2019 said the award was awaiting final ministerial approval at the time.
GGIP moves forward
The award comes amid a series of GGIP-related announcements this year.
Last week, the Shanghai-listed China Petroleum Engineering Co., Ltd., (CPE), a subsidiary of China National Petroleum Corporation (CNPC), announced that its wholly owned subsidiary China Petroleum Pipeline Engineering Company (CPP) received letter of award from BOC for the Basra Province Seawater Pipeline EPC Project.
The company said in a Chinese–language stock exchange statement that the contract, valued at $2.524 billion, is yet to be signed. The scope of work includes the construction of trunk pipelines from seawater treatment facilities to various interconnecting stations, branch pipelines from interconnecting stations to oilfield distribution stations, and pipeline ancillary surface facilities. The contract period is 54 months inclusive of 42 months for the design, procurement, construction, and commissioning phase, and 12 months for operation, maintenance, and training.
In June 2025, CPE said in a stock exchange statement that CPP was awarded the $294 million Ar -Ratawi Gas Midstream Pipeline project by TotalEnergies. One of the four sub-projects of GGIP, Ar-Ratawi Gas Midstream Project (GMP) aims to eliminate flaring and recover the gas from several oil fields. Collected and processed, the gas will then be transported by pipeline to supply the local power plants, thereby improving the electricity supply to this region, which is regularly affected by power cuts.
CPE stated that project will be executed under the engineering, procurement, supply, construction and commissioning (EPSCC) model over a 36-month period. It involves construction of approximately 114 kilometres of a 26-inch sour gas pipeline, an 83-kilometre 20-inch sour gas pipeline, three export pipelines, and supporting valve stations to link Majnoon and West Qurna II oil fields to the Ar-Ratawi gas processing plant.
The GGIP project focuses on recovering flared gas from three oil fields, supplying gas to power plants, developing a 1 Gigawatt (GW) solar power plant for the Basra regional grid, and constructing a seawater treatment plant to support water injection for enhanced oil recovery in the region.
In March 2025, Zawya Projects reported that Iraq has commenced construction of a 1,000 megawatt (MW) solar photovoltaic (PV) power plant as part of GGIP. The plant is equally owned by TotalEnergies and QatarEnergy.
(Writing by Majda Muhsen; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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