Iraq and TotalEnergies close in on $27-bln energy deal

BAGHDAD, March 20, 2023 – Iraq and TotalEnergies are in the final stages of initiating a long-delayed USD 27-billion energy agreement, Reuters reported on Sunday.

Iraqi Minister of Oil Hayyan Abdul Ghani said the two parties “had reached advanced stages” in finalising the development.

According to Reuters the development was withheld due to disagreement over which party would hold a majority stake.

The deal signed in September 2021 involves four hydrocarbons and solar projects.

The first project consists of injecting seawater into oilfields to enhance production, which will initially cost USD 3 billion.

The second project consists of a new 8.5-mcm-per-day (300-mcf-per-day) gas processing facility for the West Qurna 2, Majnoon, Artawi, Tuba and Luhais gasfields in southern Iraq. TotalEnergies originally agreed to invest an initial USD 2 billion in the project.

The company will also work to up production of the Ratawi oilfield from 85,000 bopd to 210,000 bpd.

The last project involves construction of a 1-GW solar plant meant to supply energy to Basra, Iraq.

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