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By John Lee.

South Korea's Hyundai Livart has reportedly won a contract worth KRW 117.8 billion [$80 million] to build worker accommodation, offices and other infrastructure at Iraq's Common Seawater Supply Project (CSSP) in Basra.

According to Maeil Business Newspaper, Hyundai Livart secured the contract through a competitive bidding process against several Middle Eastern construction firms.

Work is scheduled for completion by June next year.

In August, the Iraqi government approved the award of the Common Seawater Supply Project for the Artawi [Ratawi] oil field to Hyundai Engineering & Construction. The project is jointly funded by TotalEnergies, Basra Oil Company (BOC), and QatarEnergy.

More here.

(Source: Maeil Business Newspaper)

By John Lee.

The Iraqi Parliament has held a session to discuss Iraq's water crisis and drought conditions, with the participation of the Minister of Water Resources and the Undersecretary of the Ministry of Foreign Affairs.

The session reviewed the impact of climate change, declining rainfall, and upstream water management on Iraq's water security. The Minister of Water Resources, Aoun Dhiab Abdullah, said Iraq is experiencing its most severe water conditions this year, noting the absence of any binding agreement with Turkey on fixed water-sharing quotas.

He outlined priority measures to address shortages, including seawater desalination for southern provinces, wastewater treatment and reuse, and modernising irrigation methods to replace outdated practices.

Discussions also covered the framework agreement signed between Iraq and Turkey. The Ministry of Water Resources indicated that the agreement does not yet amount to a formal water-sharing treaty. The Undersecretary of the Ministry of Foreign Affairs, Mohammed Bahr Al-Uloom, said the framework addresses multiple areas, including cross-border water, climate change, agriculture, and cooperation mechanisms, and aims to support fair and efficient use of shared water resources and joint infrastructure projects.

Key issues raised during the session included:

• The need for new dams to reduce water losses
• Linking water-sharing discussions with broader economic relations with Turkey
• Submitting agreements to parliament prior to signature
• Ensuring adequate budget allocations for water, agriculture, and housing projects in the 2026 budget
• Fair distribution of water resources among provinces

Members of parliament also questioned progress on the seawater desalination project for Basra, the use of rainfall and dam storage, and measures to address salinity. Calls were made to form a parliamentary committee supported by experts to develop an integrated national approach to water management.

(Source: Iraqi Parliament)

By John Lee.

France's Vallourec has been awarded a second contract by TotalEnergies to supply casing, tubing, and associated accessories for the drilling of 48 wells under the Associated Gas Upstream Project 2 (AGUP2).

The project forms a key part of the Gas Growth Integrated Project (GGIP), operated by TotalEnergies in partnership with Basra Oil Company (BOC) and QatarEnergy.

The AGUP2 initiative aims to process oil and associated gas from the Ratawi [Artawi] oil field, increasing production capacity to 210,000 barrels of oil per day and 154 million standard cubic feet per day of gas. It also supports Iraq's goal of eliminating routine gas flaring and advancing a lower-carbon energy future.

The wider GGIP -- a flagship 4-in-1 energy development -- combines gas recovery from three southern oil fields to supply power plants, redevelopment of the Ratawi field, construction of a 1 GWac (1.25 GWp) solar farm, and a seawater treatment plant to support oil operations.

In the first phase, Vallourec delivered approximately 15,000 tonnes of casing and tubing for 30 wells. In this second phase, the company will supply over 30,000 tonnes of premium tubular products, including about 3,000 tonnes of Premium Line Pipe with anti-corrosion coating.

Group Chairman and CEO Philippe Guillemot (pictured) stated:

"We are proud to continue our collaboration with TotalEnergies on this flagship project in Iraq. Since the beginning, Vallourec has been fully committed to supporting TotalEnergies. This new phase confirms the strength of our long-standing partnership and our ability to deliver high-performance, reliable tubular solutions."

(Source: Vallourec)

Al Busttan Company for General Services has signed an Engineering, Procurement, Construction, Lease and Operate (EPCLO) contract with TotalEnergies EP Ratawi Hub (TEPRH) for the design, build and operation of a 200-man Pioneer Camp in the Ratawi Field in Basra.

Pictured at the signing ceremony held at Al Busttan's North Rumaila office are Mr Ismael Shakir, Managing Director of Al Busttan and Mr Kamal Al Atassi, Project Director, Associated Gas Upstream Project-2 (AGUP-2), one of the four  major projects that TEPRH is delivering in the Ratawi Field as part of the Gas Growth Integrated Project (GGIP) operated by TotalEnergies. The Pioneer Camp wil comprise a range of single and multi-occupancy rooms, dining and recreational facilities (including a fully equipped gymnasium and a sports field), offices for 60 persons and a medical clinic.

Camp occupants will include TEPRH AGUP-2 Project personnel and early works personnel for the planned CPF-2 and Network and Wellpads (NWP) projects. Construction on the multi -million-dollar project will start imminently and is scheduled for completion in February 2026.  Al Busttan will then operate the facility for an extended period providing the full suite of life support services including catering and facility management.

The Associated Gas Upstream Project Phase 2 (AGUP2) of the Ratawi oil field's redevelopment will increase production to 210,000 barrels per day (bpd) without routine flaring, starting in 2028.

The GGIP is designed to enhance the development of Iraq's natural resources to improve the country's electricity supply. This 4-in-1 multi-energy project comprises the recovery of gas that is currently flared at three oil fields in southern Iraq to supply electric power plants, the redevelopment of the Ratawi oil field, the construction of a 1 GWac (1.25GWp) solar farm and of a seawater treatment plant.

(Source: Al Busttan)

By John Lee.

The Ministry of Electricity has announced the signing of a contract for the implementation of the Al-Faw Gas Power Plant project in Basra - the largest investment-based gas-fired station in southern Iraq.

The 3,000-megawatt combined-cycle plant will be built by GE and will include four gas turbines and two steam units. It will also feature advanced seawater desalination technology to meet its operational requirements.

The contract was signed between the General Company for Electricity Production (Southern Region) and the investor, Advanced Technology Systems Company, under a "Take and Pay" model, which ensures payment only upon delivery of generated power. Unlike previous agreements, the investor company will also be responsible for providing the plant's operating gas supply.

Minister of Electricity Ziyad Ali Fadel, who attended the signing ceremony, praised Prime Minister Mohammed Shiaa Al-Sudani's continued support for the energy sector and his commitment to removing obstacles to new power projects.

He explained that Al-Faw was chosen for its strategic location and symbolic importance, especially given its proximity to the Grand Faw Port and the new electrical interconnection with Kuwait via the Wafra-Faw line.

Basra currently operates 15 power plants with a total output of around 7,000 MW, exceeding the province's actual demand of about 5,000 MW, with the surplus exported to neighbouring governorates via newly inaugurated 400 kV transmission lines.

The Minister also highlighted ongoing projects, including the 1,000 MW Shams Al-Basra solar initiative, rehabilitation works at the Hartha Power Plant, and several new investment opportunities to strengthen Iraq's national power grid.

(Source: Ministry of Electricity)

By John Lee.

Basra Oil Company (BOC) and China Petroleum Pipeline Engineering (CPPE) have signed a contract for a 950-kilometre seawater distribution pipeline network to supply multiple oilfields in southern Iraq, with project supervision by Austria's ILF Consulting Engineers.

The contract forms part of Iraq's strategic Common Seawater Supply Project (CSSP), which includes a central treatment facility with a capacity of 5 million barrels per day, expandable to 7-8 million barrels in later phases. The treated seawater will be injected into major oilfields, including Rumaila, Zubair, West Qurna 1, West Qurna 2, and Majnoon, as well as fields in Maysan and Dhi Qar, to maintain reservoir pressure and sustain crude oil production.

The project complements earlier agreements signed by TotalEnergies with Hyundai Engineering and other partners under Iraq's broader gas development and oil production enhancement programme, including increasing output at the Artawi [Ratawi] field to 210,000 barrels per day.

Officials noted that the seawater injection scheme will reduce the reliance on freshwater sources currently diverted from rivers and aquifers, thereby preserving them for agricultural and human use.

In August, China Petroleum Engineering Co. (CPECC) announced that its wholly-owned subsidiary, China Petroleum Pipeline Engineering Co. (CPPE) has been awarded the $2.5-billion contract on a "bid awarded, pending contract signing" basis, with a total implementation period of 54 months.

(Source: Ministry of Oil)

By John Lee.

TotalEnergies, in partnership with Basra Oil Company (30%) and QatarEnergy (25%), has signed the final contracts of the Gas Growth Integrated Project (GGIP) at the Ratawi [Artawi] field in Basra, under the patronage of Prime Minister Mohammed Shia al-Sudani.

The agreements include:

• a joint operating contract between the Ministry of Oil, Basra Oil Company (BOC), TotalEnergies (45%, operator), and QatarEnergy;
• a seawater treatment facility with Hyundai (capacity 7.5 million barrels per day);
• a central oil and gas processing facility with Turkiye's Enka (210,000 bpd and 163 MMscfd of gas); and,
• a gas processing plant with China Petroleum Engineering & Construction Corp (CPECC) (600 MMscfd in two phases).

The Common Seawater Supply Project (CSSP), to be built near Umm Qasr, will substitute treated seawater for freshwater currently drawn from the Tigris, Euphrates, and aquifers, helping to reduce regional water stress and free up around 250,000 cubic metres of water daily for agriculture.

The Ratawi redevelopment, launched in 2023, will raise output to 120,000 bpd in 2026 (phase 1) and to 210,000 bpd in 2028 (phase 2), with no routine flaring. Associated gas will be processed through the 300 MMscfd Gas Midstream Project to supply the national grid, providing electricity to around 1.5 million households. The project also includes a 1,000 MW solar power component.

Prime Minister al-Sudani welcomed the agreements, describing them as evidence of Iraq's improving investment climate. Oil Minister Hayan Abdul Ghani and Qatari Energy Minister Saad Sherida Al-Kaabi attended the signing, alongside executives from TotalEnergies, Enka, Hyundai, and CPECC.

TotalEnergies CEO Patrick Pouyanné said that with all four GGIP components - oil, gas, water, and solar - now launched, the first phase of production is expected in early 2026, employing around 7,000 Iraqis during construction.

Full text of statement from TotalEnergies:

Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies, and His Excellency Saad Sherida Al-Kaabi, Qatari Minister of State for Energy Affairs, Deputy Chairman and Chief Executive Officer of QatarEnergy, met on Sunday, 14^th of September in Baghdad with His Excellency Mohammed Shia al-Sudani, Prime Minister of the Republic of Iraq, and His Excellency Hayan Abulghani, Minister of Oil and Deputy Prime Minister, to announce the start of construction of the Common Seawater Supply Project (CSSP) and the full field development of the Ratawi oil field.

These are the two last major contracts of the Gas Growth Integrated Project (GGIP), led by TotalEnergies (45%, operator) alongside its partners Basra Oil Company (30%), and QatarEnergy (25%).

With these signatures, all four parts (natural gas, solar, oil, water) of the GGIP are now in execution phase. The GGIP, a showcase project for TotalEnergies' multi-energy strategy, aims to sustainably develop Iraq's natural resources to improve the country's electricity supply while contributing to its energy independence and reducing its greenhouse gas emissions.

The seawater treatment plant, a key infrastructure to preserving the country's water resources

The CSSP will be built on the coast near the town of Um Qasr. It will process and transport 5 million barrels of seawater per day to the main oil fields in southern Iraq.

Treated seawater will be substituted for the freshwater currently taken from the Tigris, Euphrates, and aquifers to maintain pressure in the oil wells. The project will therefore help alleviate water stress in the region and is expected to free up to 250,000 cubic meters of freshwater per day for irrigation and local agriculture needs.

Ongoing redevelopment of the Ratawi field, one of Iraq's lowest-emission oil sites

The Ratawi redevelopment was launched in September 2023. Phase 1 aims to increase production to 120,000 bpd and is expected to come on stream by early 2026.

The launch of phase 2 (full field development) will enable to increase production to 210,000 bpd starting in 2028 with no routine flaring.

All 160 Mcf/d of associated gas produced every day will be fully processed thanks to the 300 Mcf/d Gas Midstream Project (GMP), whose construction began early 2025. The GMP, which will also treat previously flared gas from two other fields in southern Iraq, will deliver processed gas into the national grid where it will fuel power plants with a production capacity of approximately 1.5 GW, providing electricity to 1.5 million Iraqi households. An Early Production facility to process 50 Mcf/d of associated gas will start early 2026 together with the Ratawi phase 1 oil production.

"We are delighted today to award the two final contracts of the Gas Growth Integrated Project, in particular the seawater treatment plant which has been long awaited by the oil industry in Iraq. In less than 2 years since the GGIP effective date in August 2023, TotalEnergies and its partners have fully executed their commitment towards the people of Iraq and launched all projects included in the multienergy GGIP projet, the best showcase of TotalEnergies transition strategy. All these projects will bring a significant contribution to the Iraq economy and employ during the construction phase 7,000 Iraqi nationals.," declared Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies. "Furthermore, I am proud to confirm that the first phase of the associated gas, oil and solar projects will start-up as soon as early 2026."

About the Gas Growth Integrated Project in Iraq

In 2023, TotalEnergies launched the multi-energy Gas Growth Integrated Project (GGIP) in Iraq. The GGIP is designed to enhance the development of Iraq's natural resources to improve the country's electricity supply. This 4-in-1 project comprises the recovery of gas that is currently flared at three oil fields in southern Iraq to supply electric power plants, the redevelopment of the Ratawi oil field, the construction of a 1 GWac (1.25GWp) solar farm and of a seawater treatment plant.

(Sources: TotalEnergies, Ministry of Oil, PMO)

By John Lee.

As part of its measures to address water scarcity, the Iraqi government has approved the award of the Common Seawater Supply Project (CSSP-ITT-05) tender for the Artawi [Ratawi] oil field to Hyundai Engineering & Construction of South Korea.

The contract covers engineering, procurement, supply, construction, commissioning, and operation (EPSCC) of the seawater treatment plant.

The decision includes ratifying the results of price negotiations and granting the award as an exception to Government Contracts Implementation Instructions No. 2 of 2014, to account for procedures taken between 2018 and 2021 under financial authorities.

A special investigative committee will examine legal violations from 2018 concerning the direct invitation of companies without the necessary approvals. The findings will be submitted to the Prime Minister for a decision.

(Source: PMO)

By John Lee.

China Petroleum Engineering Co. (CPECC) has announced that its wholly-owned subsidiary, China Petroleum Pipeline Engineering Co. (CPPE) has been awarded a major contract by Iraq's Basra Oil Company (BOC) for the Basra Province Seawater Transmission Pipeline EPC Project.

The project, valued at $2.524 billion, includes the construction of trunk and branch pipelines to deliver seawater from treatment facilities to various oilfields across Basra. It also involves above-ground pipeline infrastructure.

The project is currently in the "bid awarded, pending contract signing" phase, with a total implementation period of 54 months, broken down as follows:

• 42 months for design, procurement, construction, and trial operation
• 12 months for operation, maintenance, and training

According to the company statement, if formally signed and successfully implemented, the project is expected to significantly boost the company's revenue and profits over the next 4-5 years. It would also strengthen the company's footprint in Iraq and the broader Middle East oil and gas pipeline market.

The company cautioned that uncertainties remain, including potential risks related to the political, economic, and financial environment in Iraq. Investors are advised to monitor updates and remain aware of associated risks.

Click here to read the original company announcement (Chinese).

(Source: Shanghai Stock Exchange)

By John Lee.

The Prime Minister's Office has laid the foundation stone for Iraq's largest seawater desalination project, located near the Grand Faw Port in Basra, with a total capacity of 1 million cubic metres per day.

Speaking at the launch, Prime Minister Mohammed Shia Al-Sudani described the project as a long-term and fundamental solution to Iraq's chronic water shortages, caused by declining rainfall and reduced flows in the Tigris and Euphrates rivers. He said desalination represents a permanent alternative for providing clean drinking water to the people of Basra.

Key highlights from the Prime Minister's remarks include:

• The project had been delayed by administrative transfers between ministries but has now been fully transferred to Basra Governorate for effective implementation;
• It is a top priority for the federal government's public services agenda;
• It is being implemented by Al-Rida Group and China's Power China, a company with advanced technological expertise;
• Interim desalination plants will be installed around Basra during the main project's construction phase;
• The federal government is committed to supplying resources to ensure success, create jobs, and promote economic stability.

The desalination plant is expected to benefit more than 4 million residents. It comprises three parallel desalination lines, each with a capacity of 335,000 m³/day, with future expansion potential. It includes a reverse osmosis (RO) treatment plant, 12 storage reservoirs with a combined capacity of 1 million m³, a 240-km pipeline network connecting nine distribution stations across the governorate, and a dedicated 300 MW power plant.

The project is also expected to create around 3,500 jobs for locals.

(Source: PMO)