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A $27-billion agreement signed between Baghdad and France’s oil giant TotalEnergies on July 10 will support Iraq’s plans to expand its crude oil output and petrochemical industries, the Iraqi Oil Ministry said in a report on Tuesday.
The agreement, which involves 4 major projects, will also largely boost Iraq’s revenue and allow it to avoid wasting its gas wealth by ending flaring practices.
“This is a strategic package that will largely support the Iraqi economy…it will help in maximizing revenue, support plans to boost crude production and petrochemical industries, and stop gas flaring,” Oil Ministry spokesman Assim Jihad said.
He told the official Iraqi Alsabah newspaper that the agreement would sharply boost Iraq’s gas output with an additional 600 million cubic feet per day.
The deal also involves heavy investments in a sea water desalination facility with a production of 5 million bpd, Jihad said, adding that the produced water would mostly be pumped to oilfields to increase crude production.
“Some of the water will also be supplied to companies involved in oil extraction…there is a need for one barrels of water to extract one barrel of oil,” he said.
Jihad said that TotalEnergies would invest heavily in the development of Artawi oilfield in the Southern Basra Governorate to produce 80,000-90,000 bpd, which will be increased later to around 210,000 bpd.
He noted that Artawi, with estimated proven reserves of nearly 10 billion barrels, contains light crude which is in “high demand in global markets.”
Total will also build a solar power plant in Iraq with an output capacity of 1,000 MW, Jihad said, adding”:This is one of the largest solar power projects in the region..It ushers in a real beginning of renewable energy investment in Iraq.”
(Writing by Nadim Kawach; Editing by Anoop Menon)
