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By John Lee.

Iraq's Council of Ministers has approved the award of Tender No. CSSP-ITT-06 from Basra Oil Company (BOC) to China Petroleum Pipeline Engineering Co., Ltd. (CPPE).

The project involves the construction of a seawater pipeline, as part of the Common Seawater Supply Project (CSSP).

The contract will be executed over 54 months, including 42 months for engineering, procurement, and construction (EPC) and 12 months for operation, maintenance, and training.

(Source: PMO)

By John Lee.

Iraqi Prime Minister Mohammed S. Al-Sudani chaired a meeting on Sunday to assess summer electricity supply plans and the progress of oil sector projects.

The Minister of Electricity outlined strategies to ensure stable power supply, including fuel station operations, while the Minister of Oil detailed fuel supply plans for power plants, including floating and mobile platforms under review.

Key decisions included:

• Completion of a gas transmission line from Basra's power plants to a floating platform.
• Approval of a new 40km gas pipeline from Al-Mahmoudiya to Bismayah to ensure full-capacity operation of the Bismayah power plant.
• Assessment of fuel oil supply, storage, and import logistics.

The meeting also reviewed strategic oil projects, including:

• Basra-Haditha oil pipeline.
• Seawater supply pipelines and treatment plant at Basra Oil Company (BOC).
• Offshore pipeline expansions (third, fourth, and fifth phases).
• Artawi [Ratawi] gas complex (Phase II).
• Mansouriya, Akkas, and Faihaa [Block 9] field developments.
• FCC fluid catalytic cracking unit project.
• Fifth and sixth licensing rounds.

The meeting assessed progress on government program projects, with an update on execution rates as of February 2025.

(Source: PMO)

By John Lee.

Iraq's Minister of Oil, Hayan Abdul Ghani, highlighted the government's commitment to gas investment as a key driver for economic and industrial development at the Iraq Britain Business Council (IBBC) Baghdad Conference on Monday.

He outlined Iraq's major achievements in the oil and gas sector, including:

• Adding 380,000 barrels per day to refining capacity.
• Achieving self-sufficiency in diesel and kerosene production.
• Covering 80% of gasoline demand, reducing imports.
• Advancing gas projects, including the installation of a floating platform at Khor Al-Zubair port to import 500-600 mmscfd of LNG.

Abdul Ghani emphasized Iraq's strategy of integrated projects, linking oil production, gas utilization, power generation, refining, and petrochemical industries. He cited the reactivation of fifth licensing round contracts, the development of Akkas (400 mmscfd) and Mansouriya (300 mmscfd) gas fields, and the award of 14 new gas exploration blocks.

Iraq has also completed key gas processing projects, including Basra Gas BNGL (200 mmscfd) and Halfaya (300 mmscfd), with further expansions planned. The TotalEnergies South Iraq Integrated Project will capture 600 mmscfd of gas, boost oil production to 210,000 bpd, and implement a 5 million bpd seawater injection project.

On renewable energy, Iraq has secured commitments for 8,000 MW of solar power at oil field sites. Meanwhile, the government is progressing with a 700 km, 56-inch oil pipeline from Basra to Haditha, supporting domestic refineries and export capacity.

Regarding Kurdistan's oil exports, Abdul Ghani confirmed that the Iraq-Turkey Pipeline (ITP) will be reactivated following amendments to the budget law, with ongoing arrangements for implementation.

He reiterated Iraq's commitment to carbon reduction, stating that oil-producing nations can play a critical role in energy efficiency and ensuring competitiveness through low-carbon crude production.

(Source: Ministry of Oil)

By John Lee.

Iraq's Oil Ministry reported steady progress on the gas investment project led by French company TotalEnergies in Basra, confirming it aligns with the government's strategic timelines.

Deputy Oil Minister for Extraction, Mr. Basem Mohammed Khudair, chaired the seventh Joint Management Committee meeting, attended by officials including Deputy Minister for Gas Mr. Ezzat Saber, Basra Oil Company (BOC) Director Mr. Basem Abdulkarim, and South Gas Company (SGC) Director Mr. Hamza Abdulbaqi. The project, a major strategic initiative, includes multiple components such as the development of the Artawi Field and gas recovery operations across five oil fields in two stages, each stage processing 300 million standard cubic feet (mmscf) daily for a total of 600 mmscf.

The project also encompasses a seawater injection system to maintain reservoir pressure, as well as a solar power plant with a 1,000 MW capacity to be developed in four phases, each producing 250 MW.

Mr. Khudair highlighted a recent addition, the "Accelerated Gas Recovery" component, aimed at further reducing gas flaring. This new element will process 50 mmscf of gas not initially planned, in response to directives for efficient gas utilization. Contracts for drilling activities have been tendered, with operations expected to commence by December.

Additionally, seismic surveys are underway, awarded to a Chinese firm in partnership with Iraq's Oil Exploration Company. Progress has also been made on securing a seawater supply, with ongoing negotiations involving Total and another firm.

An essential aspect discussed was engaging Iraqi graduates and skilled workers, whom Total is expected to employ directly, ensuring job creation without third-party contractors.

(Source: Ministry of Oil)

By John Lee.

To meet the requirements of the strategic Common Seawater Supply Project (CSSP), the Ministerial Council for Energy has approved recommendation (24054 T) for 2024, as follows:

1. Exemption of the CSSP and its consultancy tender with the Austrian firm ILF Consulting from the contracting methods stipulated in the Government Contracting Execution Instructions (2 of 2014) and exemption from applying the standard document;
2. Exemption of the CSSP and its consultancy tender with ILF and consultants from the facilitation instructions for implementing the federal general budget for the years 2023, 2024, and 2025.
3. Inclusion of the project in the aforementioned clauses (1 and 2) under the Council of Ministers decision (23700 of 2023).

(Source: PMO)

By John Lee.

Scottish consulting and engineering company Wood has been awarded a new $46 million, three-year contract by TotalEnergies in Iraq.

In a press release on Wednesday, Wood said it will provide front-end engineering design (FEED), detailed design, procurement support, and construction and commissioning assistance for the first phase of the Associated Gas Upstream Project, part of the Gas Growth Integrated Project (GGIP) in Southern Iraq.

The GGIP includes the recovery of gas currently flared in the Basra region to supply power generation plants, along with the construction of a seawater treatment unit and a 1GW solar power plant.

Shaun Dewar, Senior Vice President of Operations, Middle East and Africa at Wood said:

"This project will improve environmental sustainability through emissions reduction efforts. As part of this agreement, Wood will also continue to invest in local employment and skills development in the Basra region."

The contract will be delivered by Wood's teams in Basra and Dubai, creating 100 new positions. Wood currently employs over 1,300 people in Iraq and the UAE.

(Source: Wood)

By John Lee.

Following the recent visit of the Prime Minister to Basra, the Iraqi Cabinet has decided to authorise the Basra Governor to negotiate and sign the framework agreement with the coalition of companies executing the desalination project in the province.

According to a statement from the Media Office of the Prime Minister, this will enable the coalition to complete plans, designs, and initial surveys for the project, without imposing financial obligations on the province.

The results of the negotiation will then be presented to Cabinet for appropriate decision-making.

The Cabinet also agreed to transfer the contractual obligations for the consulting works from the Ministry of Construction and Housing to Basra Province, enabling the consulting company, ILF Consulting Engineers, "to complete its contractual duties regarding the project".

During his visit to Basra at the weekend, Prime Minister Al-Sudani chaired a special meeting regarding the seawater desalination project. The meeting was attended by the coalition of Al-Rida Group and Power Construction Corporation of China (PowerChina), described as "the executing companies of the project", as well as Basra Governor and advisors to the Prime Minister.

During the meeting, the coalition presented its plan for this significant project, which has been endorsed by the government since its inception.

The Prime Minister reviewed the final stages of negotiation and the committee's progress under the leadership of the Basra Governor with the executing coalition, emphasizing the need to expedite the project completion.

He directed to finalize the matter and submit the meeting minutes to the government for appropriate decision-making, ensuring the removal of obstacles and accelerating project completion.

The government says that this will be the largest seawater desalination project in the world, with a capacity of one million cubic meters per day, sufficient to meet the needs of 3-4 million people in Basra.

The project also includes the establishment of a power generation station as part of the project to ensure its independence from external energy sources.

(Source: Media Office of the Prime Minister)

By John Lee.

French tube maker Vallourec has signed a contract with TotalEnergies for the supply of casing and tubing and associated accessories for the first phase of the Gas Growth Integrated Project (GGIP) in Iraq.

The GGIP includes the recovery of gas currently being flared in the Basra region to supply power plants, along with the construction of a seawater treatment unit and a 1GW solar power plant. This multi-energy approach will enable the country's natural resources to be developed sustainably.

Vallourec has been a supplier to TotalEnergies for many years, drawing on its long experience in Iraq to provide its long-standing partner with a competitive premium offering that covers all its OCTG needs.

For the first thirty wells in the project, Vallourec will supply in aggregate 15,000 tonnes of VAM^® of various tubes and connections, using the highest quality steel grades, from its Brazilian and European plants. Deliveries will start in 2024.

Group Chairman and CEO Philippe Guillemot (pictured) commented:

"We are delighted to have been chosen by TotalEnergies for the first stage of this flagship project in Iraq. In addition to the drilling, our team is fully committed to working with our long-standing partner to support all future phases of this multi-energy project."

(Source: Vallourec)

The Japan International Cooperation Agency (JICA) has signed a loan agreement with the Government of Iraq to provide a Japanese ODA loan of up to 45,298 million yen [$320,ooo] for the Samawah Water Supply Improvement Project.

In order to improve water-supply volume, water quality, and service hours, and to make effective use of water resources, this project will construct water-supply facilities including desalination facilities in Samawah City, Muthanna Governorate, thereby contributing to the provision of a stable treated-water supply and the promotion of economic and social development in the city.

The project site, Samawah city, is where the Japan Ground Self-Defense Force was deployed and stationed for reconstruction assistance, after the start of the Iraq War, and next year, 2024, will be the 20th anniversary of their deployment to Iraq. In addition to this, Japan has provided a variety of support, including the construction of bridges through JICA yen loans.

In Iraq, repeated wars and deteriorating security conditions have resulted in inadequate renewal and maintenance of water-supply facilities, leading to a decline in water quality and water-supply rates, and people's quality of life has also declined as a result. Despite being the capital of Muthanna Governorate, Samawah City lacks a large-scale water-treatment plant, and is thus heavily dependent on water supplied from treatment plants outside the city.

In addition, a water supply sufficient to meet the needs of residents cannot be secured due to the decline in the capacity of treatment plants outside the city as well as leaks that occur during the delivery of the water. What is more, the Euphrates River that surrounds the city is experiencing a decline in rainfall due to climate change, which in turn has led to extremely high salinity due to the influx of seawater from the Persian Gulf. Desalination is thus necessary in order to obtain drinking water from this source.

In light of this situation, the project will construct water-supply facilities including desalination facilities, and water transmission pipes in Samawah City, Muthanna Governorate. In doing so, it will contribute to improving water-supply volume, water quality, and service hours, as well to the effective use of water resources, thereby also contributing to the achievement of SDGs Goal 6 (Clean water and sanitation).

Details for the loan are provided below.

Ministry of Construction, Housing, Municipalities and Public Works: MCHMPW
Address: MCHMPW building, Baghdad, Republic of Iraq

By John Lee.

In a meeting of the Joint Management Committee, Iraq's Oil Ministry discussed the development plan for fields and projects contracted with the French company TotalEnergies.

The Deputy Minister for Extraction Affairs affirmed the ministry's commitment to implementing strategic projects with TotalEnergies and QatarEnergy.

According to a statement from the Ministry, the four significant projects under the contract aim to support the national economy through field and oil reservoir development, gas utilization, water supply for local needs, and a groundbreaking 1,000-megawatt solar energy project, a first for Iraq.

It adds that the contracting company has received the work for project execution, including the development of the Artawi field to increase its production capacity to 210,000 barrels. Additionally, the gas treatment project in six oil fields (Ratawi [Artawi], Majnoon, West Qurna 2, Siba, Luhais [Lahais], and Tuba [Subba]) and the seawater project, which will provide substantial quantities of water for industrial and agricultural projects, were discussed. The transition to alternative energy is also part of the plan.

These projects will open doors for the Iraqi private sector to participate and create significant employment opportunities in the region. The Regional Director for the Middle East and North Africa at TotalEnergies, Julien Pouget, expressed the company's pride in the contract and appreciated the continuous support from the Oil Ministry to facilitate the projects included in the agreement. These projects, including Artawi field development, gas emissions reduction, utilization of associated gas in oil fields, seawater supply, and the 1,000-megawatt solar energy production, are expected to have a positive impact on Iraq's oil and gas industry.

(Source: Ministry of Oil)