Iraq has awarded Hyundai Engineering & Construction of South Korea a major contract for the Iraq seawater plant in the Artawi oil field. The project will improve the supply of water for oil production and help the country address water scarcity. It also represents an important step in strengthening cooperation between Iraq and South Korea. With this decision, the government aims to boost oil field efficiency while conserving freshwater resources.
The Iraq seawater plant will cover engineering, procurement, supply, construction, commissioning, and operation. Hyundai will deliver a fully functional facility designed to process seawater for oil field operations. This investment will allow Iraq to replace freshwater with seawater in oil production, easing pressure on natural water sources. Moreover, it will help stabilize output in key energy projects. The plant will serve as a critical part of Iraq’s energy infrastructure strategy.
Furthermore, the government confirmed the results of detailed price negotiations with Hyundai. Officials also approved the award as an exception to Government Contracts Implementation Instructions. This decision took into account earlier project procedures to ensure no unnecessary delays. By adopting this approach, Iraq can move forward quickly and avoid costly interruptions. The aim is to complete the project within a clear and efficient timeline.
In addition, the project aligns with Iraq’s plan to expand production capacity in the Artawi oil field. The Iraq seawater plant will provide a consistent and reliable water source for injection into oil reservoirs. This process supports higher recovery rates and extends the life of oil fields. At the same time, it helps preserve the country’s limited freshwater supply. This balance between economic growth and environmental responsibility is central to Iraq’s strategy.
Moreover, the authorities have formed a special investigative committee to review earlier actions related to the project. The committee will examine any legal concerns involving direct invitations to companies without the correct approvals. Once complete, its findings will be sent to the Prime Minister for review. This process shows the government’s commitment to transparency and accountability. It also reassures stakeholders about the integrity of the project.
The Iraq seawater plant will reduce reliance on rivers and other vulnerable freshwater sources. It will also ensure that oil operations remain stable even during periods of drought. Hyundai will bring advanced engineering capabilities to meet high environmental and technical standards. The project will likely generate local jobs and boost related industries. In turn, this will provide broader economic benefits for the region.
Ultimately, Iraq’s decision to partner with Hyundai shows a clear focus on resource efficiency and sustainable development. The plant will strengthen the oil sector, protect freshwater resources, and support economic stability. By investing in long-term solutions, Iraq is positioning itself for a more secure energy future. This project highlights the importance of combining infrastructure growth with environmental care.
