Iraq's Basra Oil Co. has signed a contract with China Petroleum Pipeline Engineering(CPPE), a subsidiary of China Petroleum Engineering Co., to construct a 950-kilometer seawater distribution pipeline network, a critical step in the country's strategic Common Seawater Supply Project.  

The project, which will be supervised by Austria’s ILF Consulting Engineers, aims to sustain and enhance crude oil production by injecting treated seawater into key southern oilfields. It includes a central treatment facility with an initial capacity of 5 million barrels per day, with the potential to expand to 7-8 million barrels in future phases. 

When completed, the pipeline network will supply treated seawater to major oilfields like Rumaila, Zubair, and West Qurna, helping to maintain reservoir pressure while also reducing reliance on Iraq's dwindling freshwater resources. 

Officials say the project will preserve water from rivers and aquifers, making it available for agricultural and human use instead of diverting it for oilfield operations.

Valued at $2.5 billion, the contract is part of a broader gas development and oil production enhancement program expected to be implemented over a period of 54 months. The program also includes separate agreements with TotalEnergies and Hyundai Engineering.