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UK company to work on Iraq’s $10bn gas project

John Wood Group
The contract in Iraq will be delivered by Wood’s teams in Basra and Dubai by creating 100 new jobs

London-listed UK contractor John Wood Group, commonly known as Wood, has won a $46 million contract from French oil major TotalEnergies to build a gas development project in southern Iraq.

The three-year contract entails front-end engineering design (Feed), detailed design, procurement support and construction and commissioning assistance for the first phase of the associated gas upstream project.

In April 2023 the Iraqi government and a consortium led by TotalEnergies agreed on a $10 billion gas deal to recapture and use flared gas in southern Iraq through the gas growth integrated project (GGIP).



Other consortium partners are Basrah Oil Company and QatarEnergy.

The first phase of the GGIP will have a production capacity of 50 million cubic feet (mcf), with a total capacity of 300 mcf.

The scheme is part of a larger $27 billion deal between TotalEnergies and Iraq, which involves four projects in southern Iraq to increase the country’s capacity to produce oil, gas, and energy from renewables.

Last year, Iraq announced a target to generate one-third of its electricity needs from renewables by 2030. According to the International Energy Agency, in 2021 Iraq was using oil for 37 percent of its electricity generation and gas for 57 percent.

The GGIP includes recovering gas currently flared in the Basra region to supply power generation plants, constructing a seawater treatment unit and building a 1-gigawatt solar power plant.

“This project will improve environmental sustainability through emissions reduction efforts,” said Shaun Dewar, senior vice president of operations, Middle East and Africa at Wood.

The contract will be delivered by Wood’s teams in Basra and Dubai by creating 100 new jobs. 

The UK contractor employs more than 1,300 people in Iraq and the UAE.

Last week Iraqi prime minister Muhammad Shia Al-Sudani said that the country will undertake a new study to use its $17 billion development road from its southern region to Turkey to export oil and gas.

In April, the UAE, Iraq, Qatar and Turkey signed a quadrilateral cooperation agreement to advance the new route. 

Baghdad wants to nearly double oil output to 8 million barrels per day by 2028.  

Last October, Iraq passed a long-awaited oil and gas law to attract more international investments into the hydrocarbon industry and boost government revenues. 

Dubai engineering and consulting company Dar Al-Handasah – known as Sidara – made a fourth and “final” bid to buy John Wood Group last May.

The latest proposal of 230 pence sterling per share gives Wood a valuation of £1.58 billion ($2 billion) and is significantly higher than the first of three bids, which were thrown out.

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