Hyundai Engineering & Construction (Hyundai E&C) just landed a massive $3 billion deal to build a huge seawater treatment and desalination plant in Iraq. This marks the biggest overseas contract for any single Korean construction firm so far in 2025.
The company announced the news on Monday, revealing they signed the agreement on Sunday at the Iraqi Prime Minister’s office in Baghdad. Key figures at the signing included Iraqi Prime Minister Mohammed Shia al-Sudani, Oil Minister Hayan Abdul Ghani Abdul Zahra, TotalEnergies CEO Patrick Pouyanne, and Hyundai E&C’s plant business head Ryu Seong-an. This project is a key part of Iraq’s integrated gas development program, which also includes oil, solar power, and seawater treatment initiatives.
Hyundai E&C will construct the facility near Jubail Port, about 500 kilometers southeast of Baghdad. It will handle a whopping 5 million barrels of seawater per day. The treated water will support major oil fields in southern Iraq, like West Qurna and Rumaila, helping boost crude oil production.
France’s TotalEnergies, Iraq’s Basra Oil Company (under the Ministry of Oil), and QatarEnergy are teaming up to fund the project. Construction kicks off soon and should wrap up in 49 months.
Iraq sits on the world’s fifth-largest proven oil reserves and relies on crude exports for over 90% of its revenue. This seawater treatment plant is one of the country’s top projects to double oil output from 4.2 million barrels per day to 8 million by 2030. Once done, it will ramp up oil production and strengthen Iraq’s economy.
Hyundai E&C has a long history in Iraq, starting with the Basra sewage project back in 1978. They’ve completed around 40 major projects worth $9 billion total, including the Al-Mussaib thermal power plant, Northern Railway, Baghdad Medical City, and the Karbala refinery. This new deal tops their previous biggest in Iraq—the $6.04 billion Karbala refinery finished in 2023.
The company credits its success to decades of trust from delivering vital national projects. Hyundai E&C plans to keep the momentum going by bidding on more contracts in refineries, power plants, housing, and other areas in Iraq.
Looking ahead, Hyundai E&C aims to grow its presence in the Middle East with big oil, petrochemical, and industrial projects. They’ll deepen partnerships with global giants like TotalEnergies, ExxonMobil, and Shell.
With this Iraq win, Korean construction companies are set to reach $50 billion in overseas orders for 2025. It follows other huge deals, like the $18.7 billion Dukovany nuclear power plant in the Czech Republic awarded to a Korean team.
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