Iraq, Total sign $27 billion energy projects deal

TotalEnergies CEO Patrick Pouyanne (L) and Iraqi Oil Minister Ihsan Abdul Jabbar sign a deal in a ceremony attended by Prime Minister Mustafa al-Kadhimi in Baghdad, September 5, 2021. (AFP photo)

SULAIMANI (ESTA) — France’s Total will build four giant energy projects in southern Iraq under a $27 billion deal signed in Baghdad on Sunday, the Iraqi oil ministry said.

The French energy company will start with an initial investment of $10 billion, Reuters cited CEO Patrick Pouyanne as saying at the signing ceremony.

He added that engineering work will start “immediately”, noting that the plan is to mobilize teams in Iraq by the end of 2021.

Iraqi oil minister Ihsan Abdul Jabbar said the first phase will include a $3 billion investment by the French group in a project to inject sea water into oilfields to enhance crude recovery, Reuters reported.

The French company will also provide $2 billion to build a processing plant for gas produced at the southern fields of West Qurna 2, Majnoon, Artawi, Tuba and Luhais, he added.

It is expected to produce 300 million cubic feet of gas per day (mcf/d) and double that after a second phase of development, he said.

Abdul Jabbar further said the gas produced from Total’s project in the south will help Iraq cut its gas imports from Iran, with the domestically produced gas also cheaper than the Iranian gas.

The cost of the gas imported from Iran is around $8 per million Btu and the gas that will be produced from Total’s project would be $1.50 per million Btu cheaper, Jabbar said.

The other two projects are a solar power plant and one to increase crude output from the Artawi oilfield.

Total will help to boost output from the Artawi oilfield to 210,000 barrels per day of oil (bpd) from 85,000 bpd now, an oil ministry statement said.

Previous Article

Oil extends losses after deep Saudi price cuts

Next Article

Iraq caps Arbaeen foreign pilgrim numbers at 40,000

Related Posts
Total
14
Share