TotalEnergies and Iraq sign landmark energy deal

BAGHDAD, July 11, 2023 – Iraq and French energy giant TotalEnergies have signed a USD 27-billion contract to begin construction of four energy projects in the country, Reuters reported on Monday.

The deal was originally signed in September 2021 but was met with delays over share sizes.

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 120,000 bopd in two years and to 210,000 bopd within four years.

The last project involves construction of a 1-GW solar plant meant to supply energy to Basra, Iraq. TotalEnergies has invited Saudi renewables giant ACWA Power to work on the facility.

The developments fall under Iraq’s Gas Growth Integrated Project, which aims to up the country’s power generation capacity and gas production.

TotalEnergies will take a 45% stake in the project, with QatarEnergy taking a 25% stake and state-owned Basrah Oil Company taking the remaining 30% stake.

“This is the starting day, and we’ll deliver the projects in the next four years for the benefit of everybody in Iraq,” said Patrick Pouyanne, chairman and CEO of TotalEnergies.

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