Iraq’s Council of Ministers has approved two significant contracts under the country’s $10 billion Gas Growth Integrated Project (GGIP), according to a statement from the prime minister’s office. The GGIP is being developed by French oil and gas giant TotalEnergies in collaboration with its partners. TotalEnergies leads the project as the primary operator, alongside Basra Oil Company (30%) and QatarEnergy (25%).
One of the awarded contracts focuses on the development of the Ratawi gas field, while the other pertains to the Common Seawater Supply Project (CSSP), which aims to transport seawater to oil fields for injection, thereby enhancing production levels.
Contracts and Key Stakeholders
The Council of Ministers approved the tender award for CSSP-ITT-06, a contract from state-owned Basra Oil Company, to China Petroleum Pipeline Engineering Corporation (CPP). This contract covers the construction of a seawater pipeline, a crucial component of the CSSP.
According to industry reports, CPP had been a leading contender for the project since mid-2023. A subsidiary of China National Petroleum Corporation, CPP is a prominent pipeline construction firm in its home market.
The CSSP contract is divided into two major components: the pipeline package, awarded to CPP, and another package dedicated to the development of a water processing facility. The pipeline contract is expected to be executed over 54 months, with 42 months allocated for engineering, procurement, and construction, followed by 12 months for operation, maintenance, and training.
Ratawi Gas Processing Plant Contract
The second approved contract involves the construction of a gas processing plant at the Ratawi gas processing complex. This project, overseen by Iraq’s state-owned South Gas Company, has been awarded to China Petroleum Engineering & Construction Corporation (CPECC). In early 2024, industry sources identified CPECC as the frontrunner for this contract, which is estimated to be worth around $1.7 billion.
Once operational, the gas processing plant will have an initial capacity of 300 million cubic feet per day, with plans to double this capacity in a subsequent expansion phase. The facility is designed to enhance Iraq’s electricity supply by capturing and processing gas that would otherwise be flared at several oil fields, including:
- Luhais
- Majnoon
- Ratawi
- West Qurna 2
- Tuba
Flared gas from these oil fields contributes to environmental degradation, making gas capture and processing a key step toward reducing Iraq’s ecological footprint. By utilizing this gas for power generation, the project will help lower Iraq’s reliance on imported electricity, ultimately cutting costs and enhancing energy security.
Beyond supporting Iraq’s national gas network for power generation, the Ratawi gas processing complex will also boost the production of valuable gas products such as liquefied petroleum gas (LPG) and condensates. US-based consultancy KBR was responsible for the front-end engineering and design (FEED) of the project.
These two contracts mark a significant step forward in Iraq’s efforts to expand its energy infrastructure, optimize its natural resources, and drive economic growth while reducing environmental impact.