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Zawya
3 days ago
- Business
- Zawya
Iraq awards Hyundai E&C contract for Common Seawater Supply Project under GGIP
Iraq's Council of Ministers has approved awarding the contract for the Common Seawater Supply Project (CSSP-ITT-05) to South Korea's Hyundai Engineering & Construction (Hyundai E&C) for the engineering, procurement, supply, construction, and commissioning of a seawater treatment plant at the Ar-ratawi oil field. 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) (
Zawya
3 days ago
- Business
- Zawya
Iraq advances Phase 1 of Development Road project with Al-Faw–Fishkhabour Railway
Iraq's Prime Minister Mohammed S. Al-Sudani on Monday chaired a meeting of the committee overseeing the rehabilitation of the Al-Faw–Fishkhabour railway, a key element of the first phase of Iraq's strategic Development Road Project. Attended by the Minister of Planning, senior advisers, and representatives from relevant ministries, the meeting reviewed detailed route maps of the multi-modal mega project, including the route of the Iraqi Republic Railways (IRR), to ensure smooth and flexible operations, an official statement by the Prime Minister's office said. Discussions also covered financing of the first section of the road component of Development Road in next year's federal budget. Anchored in the south by the Grand Faw Port, the Development Road's early works include five berths, a 62 km access road, a submerged tunnel, and a container yard, all scheduled for completion by late 2025. Al-Sudani also directed the Ministry of Transportation to complete all technical and administrative procedures to move forward with implementation of Al-Faw–Fishkhabour railway rehabilitation. Additionally, the committee expressed its appreciation to the World Bank for supporting Iraq's broader railway modernisation programme tied to the Development Road project. In June 2025, the World Bank approved $930 million for the Iraq Railways Extension and Modernisation (IREM) Project, which will upgrade 1,047 kilometres of existing lines linking southern Iraq to Mosul in the North via Baghdad. The IREM Project will span eight governorates, address the ageing fleet of locomotives and rolling stock, refurbish the Baiji maintenance workshop, and procure essential equipment and spare parts. It also aims to encourage private capital participation in developing dry ports and logistics hubs. The Development Road's 1,200 km freight and passenger corridor will link the Grand Faw Port in Basra to Turkey and onward to Europe by rail and road. It aims to cut transit times between Asia and Europe, boost Iraq's transit revenues, and spur industrial and urban growth along its route. In April last year, Iraq, Turkey, Qatar and UAE signed an agreement to cooperate on the mega project. (Writing by Nadim Kawach; Editing by Anoop Menon) (
