TotalEnergies Reactivates $27B Contracts with Iraq

TotalEnergies Reactivates $27B Contracts with Iraq

Basra Oil Company announced on Sunday the activation of four strategic contracts worth $27 billion with France’s TotalEnergies (TTEF.PA) in the fields of oil, gas, renewable energy, and seawater.

Two of the Four contracts have been dedicated to the Gas Growth Integration Project (GGIP) in Basra which aims to capture flared gas and deploy renewable energy sources. The two contracts include the development of the Artawi field, Al-Subba, Al-Luhais, and Al-Toba located North of Basra, in addition to the development of the strategic Majnoon field western-north of Basra, and gas field West Qurna 2.

Another contract related to the seawater project, which produces 5 million barrels for the purpose of water injection operations and continuity of production in the oil fields in Basra, Maysan, and DhiQar. The fourth project is the electric power project, which produces 1,000 megawatts.

The activation of the four contracts began on August 16, 2023, and currently, it will enter the stage of a contractual commitment to implement the investment contracts signed in its final version in 2023, according to Bassem Abdul Karim Al Shamkhani the Director General of Basra Oil Company.

He pointed out that Iraq faced a great challenge in the past period to implement these contracts along with the integrated projects of spitj Iraq which includes four major and large projects for oil and gas production.

The deal was signed in 2021 for TotalEnergies to build four oil, gas and renewables projects with an initial investment of $10 billion in southern Iraq over 25 years. However, the contracts were delayed amid disputes between Iraqi politicians over terms according to Reuters.

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Doaa Ashraf 452 Posts

Doaa is a staff writer with a Bachelor's Degree in Mass Communication, majoring Journalism from Ahram Canadian University. She has 2-3 years of experience in copywriting, and content creation.

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