Why Wood’s Latest Iraq Projects Matter for the Future of Oil & Gas

Introduction

In a bold move that underscores its long-term commitment to the Middle East, Wood plc has recently secured several major contracts across Iraq’s oil and gas sector. These wins are not just about business expansion, they align closely with Iraq’s push to reduce gas flaring, enhance energy efficiency, and modernize critical infrastructure.

For companies in the oil & gas value chain from EPC contractors to pipeline fabricators, Wood’s growing role in Iraq offers a window into future trends and opportunities. At Piping Elements, we believe this development is particularly relevant, because it touches on engineering, procurement, and on‑site modifications areas where high-quality piping, modular systems, and brownfield retrofits will be in high demand.

What Are Wood’s Key Contracts in Iraq?

Here’s a breakdown of Wood’s recent major initiatives in Iraq and why they matter:

1. Engineering Contract at West Qurna 1

• Wood has won a project management and engineering contract with PetroChina at the West Qurna 1 oilfield, one of the largest in the world.

• The contract spans engineering, procurement, and construction (EPC) services.

• Around 200 Wood employees (from Iraq and the UAE) will be engaged, showing local capacity building.

• Why it matters: West Qurna 1 has more than 20 billion barrels of recoverable reserves meaning sustained long-term activity.

  
  

2. Decarbonization & Flare Gas Reduction Projects (~ US$ 100M)

• Wood was awarded ~$100 million of decarbonization contracts to reduce gas flaring across several major Iraqi fields.

• Their role includes brownfield engineering, EPC, and on-site modifications to improve operational efficiency.

• These projects support Iraq’s ambitious target of reducing gas flaring by 78% by end of 2025.

• Wood is hiring ~60 new staff for these projects, which bolsters local employment.

  
  

3. Ratawi Field Redevelopment with TotalEnergies

• Wood secured two engineering + procurement framework agreements (combined value: US$ 11 million) with TotalEnergies EP Ratawi Hub.

• The contracts run for 3 years and support the Associated Gas Upstream Project (AGUP), part of TotalEnergies’ broader Gas Growth Integrated Project (GGIP).

• The goal is to de-bottleneck and upgrade existing facilities, ultimately increasing production capacity.

• Wood has already recruited ~70 Iraqis in roles ranging from welding to HSE, logistics, and quality control.

  
  

Why These Moves Are Important for the Oil & Gas Sector?

1. Sustainability + ESG Momentum

   • The flare gas reduction work shows Wood isn’t just chasing volume, it’s aligning with global ESG priorities.

   • For clients and end-users (like operators, EPC firms, and pipeline fabricators), this signals a shift: future projects in Iraq are likely to get more green‑oriented.

     
     

2. Brownfield Opportunities

   • Many projects are brownfield (i.e., modifying existing infrastructure). This is where piping systems, retrofit modules, and detailed engineering come into play.

   • For a company like Piping Elements, there could be opportunities to supply high-spec piping, fittings, or modular assemblies designed for these EPC / modification scopes.

     
     

3. Local Workforce Development

   • Wood’s hiring of local talent means more skilled engineers, welders, and technicians on the ground. This not only strengthens project delivery but also builds long-term, on-the-ground capacity.

   • Local supply chain companies should keep an eye: as more international firms scale up in Iraq, demand for qualified local subcontractors will likely increase.

     
     

4. Energy Security + Market Potential

   • Projects like GGIP (Gas Growth Integrated Project) are central to Iraq’s strategy: not just to produce oil, but to recover and use associated gas, reduce waste, and feed power plants.

   • This has economic implications: reduced imports, lower flaring, increased domestic gas use. For piping and EPC companies, it means more business across both upstream and midstream.

     
     

Challenges & Risks to Watch

• Project Complexity: Brownfield modifications can be technically challenging working on live assets means stricter safety, quality, and scheduling demands.

• Regulatory / Political Risk: Iraq has historically had political and security risks for international firms, that remains a factor.

• Capital Expenditure Pressure: Big decarbonization and redevelopment efforts need sustained CAPEX- any economic headwinds (oil price drop, inflation) could delay things.

  
  

Call to Action (for Piping Elements’ Audience)

If you’re reading this and work in EPC contracting, fabrication, or supply chain for oil & gas:

• Evaluate Partnership Opportunities: Given Wood’s scale and depth in Iraq, local and regional fabricators could explore collaborations or subcontracting for flare‑gas or brownfield projects.

• Align with Sustainability Trends: Develop capabilities for low-emission, flare‑reduction projects for instance, prefabricated gas‑handling skids, high-integrity piping, and modular recovery systems.

• Build Local Presence: Consider local partnerships or establishing a base in Iraq/ GCC to better serve these evolving decarbonization and redevelopment markets.