The South Korean builder has signed a letter of intent (LoI) with the state-run Basra Oil Company for a 49-month project to build a seawater supply plant in the southern state of Basra.

Once completed, the facility will be capable of supplying five million barrels of fresh water per day, contributing to increasing crude oil yields and financial expansion in the Middle East country, according to officials.

The negotiations were steered by vice-chairman Chung Jin-haeng, who accompanied a government envoy’s visit in January and April this year, marking the 30th anniversary of diplomatic relations between Korea and Iraq.