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| Hyundai E&C is building a $6 billion oil refinery in Karbala, Iraq. / Courtesy of Hyundai E&C |
By Jun Ji-hye
Hyundai Engineering & Construction has won a $2.45 billion order to build a seawater supply facility in Iraq, the Korean company said Wednesday.
The company said it has received a letter of intent from Basrah Oil Company under Iraq's Ministry of Oil for the Common Seawater Supply Project.
The work is part of Basrah Oil Company's project to increase crude oil production in southern Iraq.
The nation's major builder said the seawater supply facility will produce 5 million barrels of water a day to be stored in an oil well.
The large-scale project is expected to take 49 months.
Hyundai E&C said the latest order is meaningful because it again recognizes the company's reliable construction record and superior technology.
The large-scale order comes as Korea and Iraq have been enhancing their relations on the occasion of the 30th anniversary of diplomatic ties in January.
"The Iraqi government placed full confidence in Hyundai E&C that has contributed a lot to the economic growth of Iraq by successfully carrying out government-run projects, while the country has gone through wars twice," a Hyundai E&C official said. "We will continue to make efforts to secure more orders in various areas in Iraq, such as oil refineries and power plants, as the country is eager to rebuild and expand infrastructure."
Hyundai E&C has won 39 orders worth $7 billion in Iraq since 1977 when the firm participated in sewerage works in the Middle Eastern country.
The firm is building a $6 billion oil refinery in Karbala as leader of a joint venture formed with GS E&C, SK E&C and Hyundai Engineering.
Hyundai E&C said it will further expand its presence in overseas markets, especially in Asia and the Middle East.
