Iraq and French oil major TotalEnergies have signed a long-delayed $27 billion (€24.6 billion) energy deal that aims to increase oil production and boost the country’s capacity to produce energy with four oil, gas and renewables projects.
Read more: Terms agreed in April
The Gas Growth Integrated Project (GGIP) aims to improve Iraq’s electricity supply. This includes recovering flared gas at three oilfields and using the gas to supply power plants, helping to reduce the country’s import bill.
The GGIP also includes the establishment of a seawater treatment plant to mitigate the impacts of droughts – which are frequent in Iraq. The country will be able to use seawater in the water-intensive oil production process, instead of limited freshwater from rivers and marshes.
Iraq has a 30% stake in the project – smaller than what was initially proposed. TotalEnergies took a 45% stake and QatarEnergy holds the remaining 25%.
TotalEnergies Chairman and CEO Patrick Pouyanne, says: ‘This is the starting day, and we’ll deliver the project in the next four years for the benefit of everyone in Iraq.’
TotalEnergies will also develop a 1 GW solar power plant to supply electricity to the Basra regional grid, inviting Saudi company ACWA Power to join the project.
