TotalEnergies recently inked a USD 27 billion oil, gas and renewables deal with Iraq, aiming to boost the country’s capacity of energy production. The project will reportedly witness investment of USD 10 billion over the next 4 years.
Jul 10, 2023
TotalEnergies has recently signed a USD 27 billion energy deal with Iraq, with the objective of increasing oil production and boosting the country’s capacity of energy production with four oil, gas and renewables projects. The Gas Growth Integrated Project (GGIP) aims to improve the country’s electricity supply, including by recovering flared gas at three oilfields and using the gas to supply power plants, helping to reduce Iraq’s import bill. The project also includes a treatment plant enabling Iraq to utilize seawater in the water-intensive oil production process instead of limited freshwater from rivers and marshes.
As per statements by TotalEnergies, the company will also develop a 1 GW solar power plant for electricity supply to the Basra regional grid, inviting Saudi company ACWA Power to join the project. TotalEnergies Chairman and CEO, Mr. Patrick Pouyanne said that the newly inked deal includes plans to up oil production capacity at Basra’s Ratawi field to 120,000 barrels per day (bpd) in two years and then to 210,000 bpd within four years. Mr. Pouyanne signed the agreement with the Iraqi oil minister Mr. Hayan Abdel-Ghani at a ceremony in Baghdad. He stated that the project is expected to break ground this summer and is projected to witness a USD 10 billion investment over the next four years. Commenting on the solar project, Mr. Abdel-Ghani said, “It is the real beginning of investment in renewable energy in Iraq.”