TotalEnergies agrees multi-billion dollar Iraq energy deal

French giant TotalEnergies has agreed on a multi-billion dollar deal with the Iraqi government and is poised to pick up a key stake in the country’s Gas Growth Integrated Project (GGIP).

TotalEnergies on Wednesday confirmed the development and said it has agreed with the Iraqi Government for the Basrah Oil Company to pick up a 30% stake in the huge GGIP development.

The French player said that “while confirming all the terms of the development and production contract signed in 2021” the two entities have “jointly defined the necessary conditions and mutual insurances to move forward with the GGIP” development.

TotalEnergies has invited QatarEnergy to take a 25% stake in the GGIP development, in agreement with the Iraqi government.

“The consortium will thus be composed of TotalEnergies (45%), Basrah Oil Company (30%) and QatarEnergy (25%),” the French supermajor said.

TotalEnergies and its partners will invest $10 billion “to recover flared gas on three oilfields in order to supply gas to power generation plants [and] to build a seawater treatment plant in order to provide water injection for pressure maintenance to increase regional oil production”, it said.

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In addition, the French giant will develop a 1 gigawatt solar power plant to supply electricity to the Basrah regional grid.

“In agreement with Iraqi authorities, TotalEnergies will invite the Saudi company ACWA Power to join this solar project,” the French company added.