HomeEconomyIraq: Totalenergies announces an agreement for the implementation of a contract of...

Iraq: Totalenergies announces an agreement for the implementation of a contract of 10 billion dollars

The energy group and the Iraqi authorities have managed to resolve certain points of disagreement to agree on this contract that should allow “improving the country’s electricity supply.”

The French giant TotalEnergies announced on Wednesday an agreement for the execution of a contract of 10,000 million dollars signed in 2021, which took time to materialize due to tensions and which should improve the country’s electricity supply.

Last February, the Iraqi Oil Ministry indicated that the execution of this contract with the French group continued to encounter points of persistent disagreement. The project called GGIP (Gas Growth Integrated Project) “has the objective of developing Iraq’s natural resources to improve the country’s electricity supply,” recalls the press release.

“Thanks to discussions in recent months, in particular on four occasions between Prime Minister Al-Soudani and CEO Patrick Pouyanné, the Iraqi government and TotalEnergies have confirmed all the terms” of the contract signed in 2021 and “jointly defined the conditions and mutual guarantees necessary to advance in the GGIP project (Gas Growth Integrated Project)”, it is detailed.

Consortium

The Iraqi government and TotalEnergies “have agreed to a 30% interest of Basrah Oil Company (BOC) in the GGIP project. In addition, in agreement with the Iraqi government, TotalEnergies has invited QatarEnergy to acquire a 25% interest in this project. “, specifies the press release. Thus, the consortium will be made up of TotalEnergies (45%), Basrah Oil Company (30%) and QatarEnergy (25%).

TotalEnergies “welcomes the continuing word of the State of Iraq on this contract, which sends a strong and positive signal for foreign investment in the country.” The group recalls that with its partners it will invest “approximately 10,000 million dollars in particular to recover the gas burned in three oil fields in order to supply gas to power plants, to build a seawater treatment plant with a view to maintaining the pressure of oil fields and increase regional production”.

“In addition, TotalEnergies will develop a giant 1 GW solar plant to supply the Basra region’s electricity grid. According to the Iraqi authorities, TotalEnergies has invited the Saudi company ACWA Power to participate in this solar project”, indicates the press release.

Author: LP with AFP
Source: BFM TV

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