The French oil and gas group TotalEnergies has reached an agreement with the Iraqi Government on a long-delayed integrated gas development project in Iraq worth US$27bn. The Iraqi Government, through the Basrah Oil Company, agreed to take a 30% stake in the Gas Growth Integrated Project (GGIP), a smaller share than the 40% they initially requested. TotalEnergies will own a 45% stake, while QatarEnergy will take the remaining 25% of the project.
The GGIP aims to improve Iraq’s electricity supply and potentially attract new foreign investments in the country. As part of the project, TotalEnergies and its partners will notably invest about US$10bn to recover flared gas on three oil fields in order to supply gas to power generation plants; investments will also be directed to build a seawater treatment plant in order to provide water injection for pressure maintenance to increase regional oil production. In addition, TotalEnergies has announced that it will develop a 1 GW solar power plant to supply electricity to the Basrah regional grid, and that it would invite the Saudi company ACWA Power to join the project development.
The project agreement was originally signed in 2021, and TotalEnergies was set to build four oil, gas and renewables projects in southern Iraq over 25 years. However, the project suffered several setbacks before a new agreement was reached.
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