Wood picks up Iraqi gas support deal

Wood picks up Iraqi gas support deal
/ Wood
By Editorial April 23, 2025

UK-based Wood has bolstered its role in Iraq’s ambitious energy sector overhaul, securing two further contracts worth $11mn from French major TotalEnergies. These awards deepen Wood’s involvement in the sprawling Gas Growth Integrated Project (GGIP), a cornerstone initiative aimed at modernising Iraq’s energy infrastructure and curbing rampant gas flaring.

The new three-year deals cover crucial engineering and procurement services for the Associated Gas Upstream Project (AGUP) component at the Ratawi Hub. Under these agreements, Wood will support TotalEnergies in debottlenecking and significantly upgrading existing facilities. A key initial objective is to lift the site’s oil production capacity to 120,000 barrels per day (bpd). This builds upon Wood’s established presence at Ratawi since 2023, where the Scottish firm already provides engineering design, procurement, construction and commissioning assistance for the AGUP’s first phase.

Shaun Dewar, Wood’s senior vice president for Middle East and Africa operations, highlighted the firm’s “extensive track record in brownfield facility modifications” and its commitment to delivering for its French partner. He also pointed to significant local engagement, noting the recent hiring of 70 Iraqi nationals for the Ratawi hub across various disciplines following dedicated recruitment drives. This initiative supports Wood’s growing regional footprint, now exceeding 4,000 personnel after adding 500 staff across the Middle East in 2024. Contract execution will be managed by Wood’s teams in Basra and the UAE, potentially creating further local roles.

These specific contracts feed into the wider GGIP, a landmark 25-year joint venture valued at up to $27bn. Led by TotalEnergies with a 45% operating stake, the complex programme aims to capture flared gas, boost oil output from the Artawi field by 125,000 bpd, develop a substantial 1-GW solar power plant and build a major seawater treatment facility to provide water for reservoir injection, thus conserving precious freshwater resources. Its project partners are QatarEnergy (25%) and Iraq’s state-owned Basra Oil Company (30%). The GGIP’s initial phase alone represents an estimated $10bn investment commitment.

Momentum for the giant project is underlined by recent milestones. Last October, US engineering firm KBR completed the front-end engineering and design (FEED) for the Artawi gas processing facilities, targeting an initial 300mn cubic feet (8.5mn cubic metres) per day capacity, set to double later to 600 mmcf (17 mcm) per day. Furthermore, TotalEnergies awarded China’s BGP a significant seismic survey contract last June, signalling BGP’s re-entry into Iraq after a hiatus since 2015 linked to security concerns.

The Artawi oilfield itself, discovered in 1950 in southern Iraq’s Basra governorate, holds estimated proven reserves of around 10bn barrels. Wood’s continued contract success highlights the considerable opportunities for international service companies within Iraq’s strategic energy sector revival, driven by major foreign investment partnerships.

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