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Turkish contractor signs deal for Iraq oil project

16 September 2025

Turkiye’s Enka has signed a contract to develop a central processing facility (CPF) at Iraq’s Ratawi oil field as part of the second phase of the field’s development.

The contract is part of the larger $27bn Gas Growth Integrated Project (GGIP) masterplan.

The contract covers engineering, procurement, supply, construction and commissioning of the CPF for ‘Associated Gas Upstream Project Phase 2 (AGUP2)’, according to a statement from Enka.

It said that it expects the CPF to be ready to start operations in less than three years.

Under current plans, AGUP2 will increase production to 210,000 barrels a day (b/d) without routine flaring, starting in 2028.

Enka did not give a value for the contract, but it is believed to be worth more than $1bn.

Agreements were also signed with China’s Petroleum Engineering & Construction (CPECC), which will construct a gas processing plant capable of handling 600 million cubic feet a day (cf/d), and South Korea’s Hyundai Engineering, which will develop a seawater treatment facility designed for 7.5 million b/d.

The contract with Hyundai is worth 4.39 trillion won ($3.16bn).

A ceremony was held in Baghdad to mark the signing of the contracts.

GGIP masterplan

The GGIP programme is being led by French energy major TotalEnergies, which is the operator and holds a 45% stake. Basra Oil Company and QatarEnergy hold 30% and 25% stakes, respectively. The consortium formalised the investment agreement with the Iraqi government in September 2021.

The four projects that comprise the GGIP are:

  • The Common Seawater Supply Project (CSSP)
  • The Ratawi gas processing complex
  • A 1GW solar power project for Iraq’s electricity ministry
  • A field development project at Ratawi, known as the Associated Gas Upstream Project (AGUP)

The CSSP is designed to support oil production in Iraq’s southern oil and gas fields – mainly Zubair, Rumaila, Majnoon, West Qurna and Ratawi – by delivering treated seawater for injection, a method used to boost crude recovery rates and improve long-term reservoir performance.

China Petroleum Engineering & Construction Corporation (CPECC) won a $1.61bn contract in May to execute EPC works to build the gas processing complex at the Ratawi field development.

CPECC’s project team based in its office in Dubai is performing detailed engineering works on the project.

In August last year, TotalEnergies awarded China Energy Engineering International Group the EPC contract for the 1GW solar project at the Ratawi field. A month later, QatarEnergy signed an agreement with TotalEnergies to acquire a 50% interest in the project.

The 1GW Ratawi solar scheme will be developed in phases that will come online between 2025 and 2027. It will have the capacity to provide electricity to about 350,000 homes in Iraq’s Basra region.

The project, consisting of 2 million bifacial solar panels mounted on single-axis trackers, will include the design, procurement, construction and commissioning of the photovoltaic power station site and 132kV booster station.

Separately, in June, TotalEnergies awarded CPPE an EPC contract worth $294m to build a pipeline as part of a package known as the Ratawi Gas Midstream Pipeline.

Also, TotalEnergies awarded UK-based consultant Wood Group a pair of engineering framework agreements in April, worth a combined $11m, under the GGIP scheme. The agreements have a three-year term under which Wood will support TotalEnergies in advancing the AGUP.

One of the aims of the AGUP is to debottleneck and upgrade existing facilities to increase production capacity to 120,000 b/d of oil on completion of the first phase, according to a statement by Wood.

https://image.digitalinsightresearch.in/uploads/NewsArticle/14668266/main.jpg
Wil Crisp

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