TotalEnergies has formally committed to executing four expansive energy ventures. Basra Oil Company (BOC) of Iraq revealed that TotalEnergies, in line with an accord reached with the Iraqi government last July, has taken on the responsibility for these ambitious undertakings.
This long-anticipated $27 billion energy deal, heralded as a transformative move, is anticipated to not only enhance Iraq’s oil production capabilities but also elevate its energy output across oil, gas, and renewable sources. According to reports from Reuters, the deal’s scope encompasses initiatives aimed at augmenting Iraq’s energy landscape.
The pact, originally penned in 2021, outlined the creation of four multifaceted projects spanning oil, gas, and renewable energy sectors. The initial investment, pegged at $10 billion, was earmarked for projects concentrated in the southern regions of Iraq, with the agreement’s term extending over a 25-year period. However, the journey towards finalizing the deal was marked by challenges, as disagreements between Iraqi politicians over contractual terms led to setbacks.
The culmination of these hurdles arrived in April when Iraq acceded to a reduced stake of 30 percent in the projects, a concession from their initial demands. Taking a majority share of 45 percent, TotalEnergies secured its position, while QatarEnergy acquired the remaining 25 percent.
The formal agreement was sealed during a momentous ceremony in Baghdad, where TotalEnergies CEO Patrick Pouyanne and Iraqi Minister of Oil Hayan Abdel-Ghani affixed their signatures to the pact. Pouyanne, who described the occasion as a historic milestone, underlined the importance of the collaboration.
The quartet of ventures commences with a pioneering initiative that harnesses seawater to enhance oil extraction techniques. Additionally, the Gas Growth Integrated Project (GGIP) constitutes the second effort, aimed at ameliorating Iraq’s electricity supply by repurposing flared gas from three oilfields to energize power plants, subsequently curbing the nation’s reliance on imports.
The third endeavor involves the expansion of the Artawi oilfield, set to significantly elevate its daily production capacity to over 210,000 barrels. Lastly, the fourth project focuses on erecting a robust 1-gigawatt solar power plant, poised to serve as a crucial electricity source for southern Iraq.
Notably, the esteemed participation of Saudi Arabia’s ACWA Power has been extended by TotalEnergies to collaborate on the development of the monumental solar power plant venture, solidifying regional cooperation in this impactful stride towards energy sustainability.
