Iraq to move on $27-bln energy venture in H2 2023

BAGHDAD, May 15, 2023 – Iraq has announced expectations that its USD 27-billion oil, gas and renewables project will begin in H2 2023, Reuters reported on Friday.

According to Iraq’s Deputy Oil Minister for Upstream Affairs Basim Mohammed, French energy giant TotalEnergies and the state-run Basra Oil Company are in the process of finalising side contracts.

The deal was originally signed in 2021 for the construction of four energy projects in southern Iraq but was met with delays over which party would hold a majority stake.

In April 2023, Iraq said it had agreed to a smaller 30% stake in the project, with QatarEnergy joining the consortium with a 25% stake.

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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