By Yange Ikyaa
TotalEnergies and its partners are to invest approximately $10 billion (100% share) in Iraq after an agreement with the government to develop allotted gas fields.
The Iraqi Government and TotalEnergies have already agreed on a 30% stake for the Basrah Oil Company (BOC) in the Gas Growth Integrated Project (GGIP). Furthermore, in agreement with the Iraqi Government, TotalEnergies has invited QatarEnergy to take a 25% stake in the GGIP.
The consortium will therefore be composed of TotalEnergies (45%), Basrah Oil Company (30%) and QatarEnergy (25%).
While confirming all the terms of the Development and Production Contract that was signed in 2021, TotalEnergies and the Iraqi Government have, through exchanges in the past months, including on four occasions between Prime Minister Al-Sudani and Chairman and CEO Patrick Pouyanné, jointly defined the necessary conditions and mutual insurances to move forward with the GGIP.
TotalEnergies said it welcomed the continuity of the voice of the State of Iraq on this Development and Production Contract, which is a strong and positive signal for foreign investment in the country.
Signed in September 2021, the GGIP is meant to enhance the development of Iraq’s natural resources to improve the country’s electricity supply.
It will specifically recover flared gas on three oil fields in order to supply gas to power generation plants in the country.
Furthermore, a seawater treatment plant will be built in order to provide water injection for pressure maintenance to increase regional oil production as an alternative to the use of fresh water from rivers and aquifers.
TotalEnergies will also develop a 1 GW 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.