▲ Part of Iraq's comprehensive development program, with a seawater treatment capacity of approximately 5 million barrels per day

▲ Continues a string of major plant project wins in oil-producing nations, based on outstanding project execution and long-standing trust

Hyundai E&C has once again reaffirmed its position as a global plant construction powerhouse, securing a mega-scale seawater treatment plant project in Iraq valued at over KRW 4 trillion.

Hyundai E&C announced that on September 14th (local time), it signed a contract for the Water Infrastructure Project (WIP), valued at approximately USD 3 billion, at the Prime Minister's Office in Baghdad, Iraq.

The signing ceremony was attended by key dignitaries, including Muhammad Shia' Al-Sudani, Prime Minister of Iraq; Hayan Abdul Ghani, Iraq's Minister of Oil; Saad Sherida Al Kaabi, Qatar's Minister of State for Energy Affairs; Patrick Pouyanné, CEO of Total Energies; and Ryu, Seongan Head of the Plant Business Division at Hyundai E&C. The event was held as part of a comprehensive development program encompassing gas, oil, solar, and seawater treatment within Iraq.

The WIP project, to be executed by Hyundai E&C, involves the construction of a seawater treatment plant capable of producing five million barrels of water per day, located near the Khor Al-Zubair Port, approximately 500km southeast of Iraq's capital, Baghdad. The water produced at this facility will be used to enhance crude oil production at Iraq's major oilfields in the Basra region, including West Qurna and South Rumaila.

This project is a joint investment by the French energy giant TotalEnergies, the Basrah Oil Company under Iraq's Ministry of Oil, and Qatar's state-owned oil company, Qatar Energy. The construction period is 49 months from the start of construction.

Iraq, which boasts the world's fifth-largest oil reserves, relies on crude oil exports for over 90% of its national income. The WIP is one of Iraq's key national policy projects aimed at increasing crude oil production from the current 4.2 million barrels per day to 8 million barrels per day by 2030. Upon completion, this project is expected to not only boost Iraq's crude oil output but also significantly contribute to increasing the nation's fiscal revenues.

Since entering the Iraqi market in 1978 with the Basrah Sewage System Phase 1 project, Hyundai E&C has constructed approximately 40 major national facilities across Iraq, valued at around USD 9 billion, including the Al-Musaib Thermal Power Plant, the Northern Railway, Baghdad Medical City, and the Karbala Refinery. Notably, the WIP is the largest project undertaken by the company since the completion of the Iraq Karbala Refinery (total project cost of USD 6.04 billion) in 2023.

A Hyundai E&C official stated, “A key factor in securing this contract was the unwavering trust placed in Hyundai E&C, which has successfully carried out the construction of major national projects and contributed to Iraq's economic growth over a long period, amidst uncertainties such as war and the pandemic.” The official added, “Moving forward, we will do our utmost to secure a competitive edge in the bidding for a variety of projects expected to be continuously tendered in Iraq, including refineries, power facilities, and housing.”

In the latest Top 250 International Contractors rankings (based on overseas revenue) announced by the U.S. construction engineering journal Engineering News-Record (ENR), Hyundai E&C ranked 10th globally with overseas revenues of approximately USD 9.85 billion. This is a two-spot rise from the previous year, marking its highest ranking ever since becoming part of the Hyundai Motor Group and the highest among Korean construction companies. Hyundai E&C's global competitiveness was once again recognized, placing amongst the top 10 by region—including the U.S. (5th), the Middle East (6th), Asia (8th), and Latin America (10th)—and by sector, including Industrial Plants (1st) and Petrochemicals (9th).

Just as with the current WIP project, Hyundai E&C plans to continue bidding for mega-scale projects in its traditional stronghold market of the Middle East, in sectors such as crude oil development, petrochemicals, and industrial facilities. At the same time, the company intends to further solidify its influence in the overseas energy market by strengthening cooperation with global energy giants like France's Total Energies, ExxonMobil of the U.S., and Europe's largest oil company, Royal Dutch Shell.