South Korea’s Hyundai Engineering & Construction has secured a $3.16 billion contract from TotalEnergies to deliver a major seawater treatment plant in Iraq — a cornerstone of the country’s energy expansion strategy.

The agreement, valued at 4.39 trillion won, covers the design and construction of a large seawater treatment facility that will form part of Iraq’s Common Seawater Supply Project (CSSP). Hyundai confirmed the deal in a filing on Monday.

The CSSP is a central pillar of Iraq’s $13 billion Gas Growth Integrated Project (GGIP), an ambitious initiative led by TotalEnergies in partnership with QatarEnergy and the state-owned Basra Oil Company. The project is designed to process seawater for injection into oilfields, helping sustain crude production while also capturing and utilizing more of Iraq’s gas output.

This week also marked the launch of construction on phase two of the Ratawi oilfield redevelopment, another major piece of the GGIP puzzle. Together, the seawater facility and Ratawi expansion represent the final building blocks of the initiative, which aims to transform Iraq’s oil and gas sector and cut its dependence on energy imports.

Analysts note that the award underscores Hyundai’s strengthening presence in the Middle East energy market while reaffirming TotalEnergies’ commitment to long-term investment in Iraq’s energy future.