TotalEnergies signs $27bn energy deal with Iraq

TotalEnergies signs $27bn energy deal with Iraq

France’s TotalEnergies SE signed a $27bn contract with the Iraqi government on Sunday (05 Sept) in a 25-year deal.

The energy giant will invest in four troubled energy projects that the country has struggled to implement for several years, this includes injecting seawater into oil fields to increase the amount of oil recovered, a natural-gas processing plant, and a solar farm, the people said.

The announcement of the deal, supposed in part to reduce Iraq’s reliance on fossil fuels, came as Oil Minister Ihsan Ismail signed the contract at a Baghdad ceremony with TotalEnergies chief Patrick Pouyanne.

“This is the largest investment in Iraq by a Western company,” Ismail said. “Implementing these projects is the challenge we face now.”

“Happy to be in Basra where I visited gas and oil fields,” Pouyanne tweeted in January. “Reducing flaring and increasing gas production is a priority for Iraq as well as for Total. Let’s work together!”

An initial investment of $10 billion in infrastructure, the proceeds of which will then allow the second round of investments of $17 billion, the officials said.

Despite being the number two producer in the Organization of the Petroleum Exporting Countries, Iraq s experiencing an acute energy crisis and chronic blackouts that fuel social discontent.

Source: News Agencies and the Internet