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Turkish contractor ENKA has signed a deal worth more than $1 billion with French energy company TotalEnergies to build a crude oil and natural gas processing plant in Iraq’s southern Basra region.
According to a statement disclosed on the Public Disclosure Platform (KAP) on Monday, the company will be responsible for engineering, procurement, construction and commissioning of the Central Processing Facility.
The agreement forms part of TotalEnergies’ broader Gas Growth Integrated Project (GGIP), which aims to expand Iraq’s natural gas production capacity.
After the disclosure, the company's shares (IST: ENKAI) listed on Türkiye's stock exchange, Borsa Istanbul, rose by nearly 8%.
According to a statement from Iraq’s prime minister’s office, the planned Central Processing Facility in Basra will be designed to handle 210,000 barrels of crude oil per day alongside 4.6 million cubic meters of natural gas.
This dual-capacity design reflects Iraq’s effort to increase both crude output and the use of associated gas, which has traditionally been wasted through flaring.
ENKA stated that the facility is scheduled to be completed and ready for operation in less than three years.
Once operational, the project will form a cornerstone of Iraq’s broader strategy to modernize its energy infrastructure, strengthen domestic supply, and attract foreign investment.
The development is part of Phase 2 of TotalEnergies’ Associated Gas Upstream Project (AGUP), which is aimed at building integrated facilities that can efficiently capture and process resources.
Officials said the project is expected to support Iraq’s goal of reducing dependence on imported fuels while also contributing to job creation and long-term economic growth.
The Gas Growth Integrated Project (GGIP) is TotalEnergies’ flagship initiative in Iraq to expand natural gas production and reduce the practice of gas flaring, a process in which natural gas released during oil extraction is burned off.
This practice, common in many oil-producing countries, leads to wasted energy and higher carbon emissions.
With a total investment estimated at over $13 billion, the GGIP is one of the largest energy projects ever undertaken in Iraq. Through this initiative, TotalEnergies and its partners aim to capture associated gas, process it, and direct it toward domestic power generation.
The project is designed not only to reduce environmental impact but also to strengthen Iraq’s electricity grid, which has faced chronic shortages.
Founded in 1957, ENKA operates globally, specializing in large-scale infrastructure, energy, and industrial projects.
The company has executed projects in over 30 countries, including power plants, oil and gas facilities, highways, and commercial buildings.
ENKA is also active in real estate development and energy production within Türkiye.
In 2025, it was ranked among the "World’s 50 Best Construction Companies" in ENR’s (Engineering News-Record) global list, as the only Turkish firm included in the ranking.
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