Iraq’s Minister of Oil, Hayan Abdul-Ghani, engaged in discussions on Wednesday regarding a collaborative effort in the energy sector with a delegation from TotalEnergies.
The meeting centered around TotalEnergies’ strategic plans and initiatives related to recently established projects in partnership with national oil companies. This important dialogue signifies a promising step forward in Iraq’s energy landscape.
The collaboration between TotalEnergies and Iraq’s Basra Oil Company (BOC) gained momentum in August, when TotalEnergies committed to executing four substantial energy projects as part of an agreement reached with the Iraqi government in July. Valued at $27 billion, this long-awaited deal holds the potential to significantly bolster Iraq’s oil production and enhance its energy capabilities across oil, gas, and renewable energy domains, as reported by Reuters.
The initial signing of the agreement in 2021 marked the beginning of a journey beset by challenges, primarily stemming from disagreements among Iraqi politicians regarding the deal’s terms. However, after months of negotiations, the deal was successfully concluded in April, with Iraq agreeing to a reduced stake of 30 percent in the project. TotalEnergies secured a 45 percent stake, while QatarEnergy assumed the remaining 25 percent.
The historic agreement was formally cemented in Baghdad during a ceremony attended by TotalEnergies CEO Patrick Pouyanne and the Iraqi Minister of Oil. Pouyanne celebrated the occasion as a momentous day, emphasizing the importance of this partnership.
Among the four ambitious projects outlined in the agreement, the first focuses on harnessing seawater to support oil extraction operations. The second project, known as the Gas Growth Integrated Project (GGIP), aims to enhance Iraq’s electricity supply by recovering flared gas at three oilfields for use in power plants, ultimately reducing the country’s import expenditures.
The third project involves the development of the Artawi oilfield to ramp up production capacity to over 210,000 barrels per day. Lastly, the fourth project entails the construction of a massive 1-gigawatt solar power plant, destined to provide much-needed electricity to southern Iraq.
As this collaboration between Iraq and TotalEnergies unfolds, it holds the promise of not only bolstering Iraq’s energy sector but also contributing to the broader region’s energy stability and sustainability.
