TotalEnergies company, Iraqi Ministers for oil and electricity, and the country’s National Investment Commission have signed four major agreements for developing oil and gas as well as solar energy projects worth $27 billion with expected revenues of $95 billion, press releases issued by TotalEnergies and Iraqi Oil Ministry announced.
According to the statements, TotalEnergies has signed three contracts with the oil ministry in addition to a contract with the electric ministry for achieving the optimum investment of Iraq’s natural resources and secure a high level of stability for electric power needs.
TotalEnergies, with the support of the Iraqi authorities, on the one hand will invest in installations to recover gas that is being flared on three oil fields and as such supply gas to 1,5 GW of power generation capacity in a first phase growing to 3 GW in a second phase, and, on the other hand, will also develop 1 GWac of solar electricity generation capacity to supply the Basra regional grid.
“These agreements signal our return through the front door to Iraq, the country where our Company was born in 1924. Our ambition is to assist Iraq in building a more sustainable future by developing access to electricity for its people through a more sustainable use of the country’s natural resources such as: reduction of gas flaring that generates air pollution and greenhouse gas emissions, water resource management and development of solar energy,” said Patrick Pouyanné, TotalEnergies’ Chairman and CEO.
“This project perfectly illustrates the new sustainable development model of TotalEnergies, a multi-energy Company which supports producing countries in their energy transition by combining the production of natural gas and solar energy to meet the growing demand for electricity. It also demonstrates how TotalEnergies can leverage its unique position in the Middle East, a region where the lowest-cost hydrocarbons are produced, to gain access to large-scale renewable projects,” he added.