Iraq has picked U.S. firm CH2M Hill for a contract worth $170 million to help manage a water injection project, the head of state-run South Oil Co. said on Wednesday.

"The South Oil Company has selected CH2M Hill to offer consultancy for the management of the seawater injection project," Dhiya Jaafar said.

"The South Oil Company will be the leader of the project. We will send the contract to the oil ministry to approve it".