The US$27 billion energy agreement between Iraq and the massive French company TotalEnergies includes numerous projects in the oil, gas, and renewable energy industries.
In Baghdad, the deal was signed by TotalEnergies CEO Patrick Pouyanne and Iraqi Oil Minister Hayan Abdel-Ghani. According to the specified deal, QatarEnergies would participate with a 25% share in the Iraqi project, and the state-owned Basrah Oil Company will acquire a 30% stake.
Pouyanne stated that the project would start this summer and receive a $10 billion investment over the following four years.
“This is the starting day, and we’ll deliver the projects in the next four years for the benefit of everybody in Iraq,” he was quoted saying.
Iraq hopes the project will attract fresh foreign investment into its energy sector which has seen slower than expected investments in the past few years.
“I hope that this will be a strong signal to other investors to come to Iraq,” Pouyanne stated.
Under the wide-ranging agreement, TotalEnergies and its partners will initially invest $10 billion in projects that will include the recovery of flared gas on three oilfields to supply gas to power generation plants and building a seawater treatment plant to provide water injection for pressure maintenance to increase regional oil production.
In addition, TotalEnergies will develop a 1-gigawatt solar power plant to supply electricity to the Basrah regional grid.
“In agreement with Iraqi authorities, TotalEnergies will invite the Saudi company ACWA Power to join this solar project,” the French company has said.
Opec giant Iraq’s oil production capacity has remained around 5 million barrels per day in recent years and the nation is looking to significantly increase its capacity for oil, gas, and renewable energy sources as a result of new energy agreements.