TOTALENERGIES has signed an agreement with the Iraqi government and the country’s National Investment Commission (NIC) for oil, gas and solar projects in the Basra region worth $ 27 billion over 25 years.
According to TotalEnergies, Iraq, rich in natural resources, is experiencing electricity shortages in a context of sharp increase in demand. The Financial Time reports that the country is courting foreign investors to increase oil production and natural gas capture in order to alleviate shortages.
Through the projects announced, TotalEnergies – supported by the Iraqi authorities – intends to promote the development of the country’s natural resources to improve electricity supply.
Under these agreements, TotalEnergies will invest in gas flaring recovery facilities on three oil fields to supply gas to 1.5 GW of electricity production in a first phase, then to 3 GW in the second phase.
TotalEnergies specifies that it will build a new gas collection network, processing units to supply local power plants, and will work to optimize oil and gas production on the Ratawi field by building and operating new capabilities. Reuters reports that the company will build a plant to process the gas produced in the South Artawi (Ratawi), Luhais, Majnoon, Tuba and West Qurna 2 fields. It adds that TotalEnergies will help increase Ratawi’s production by 85,000 bbl / d at 210,000 bbl / d.
The agreements also include the construction of a large-scale seawater treatment unit to increase water injection capacities in fields in southern Iraq without increasing water withdrawals as the country continues. is faced with a water stress situation. Water injection is necessary to maintain pressure in several fields and will thus help optimize the production of natural resources in the Basra region.
Another agreement will see TotalEnergies build and operate a photovoltaic power plant with peak production of 1 GW to supply electricity to the electricity grid in the Basra region.
Patrick Pouyanné, CEO of TotalEnergies, said the company is supporting producer countries in their energy transition by combining natural gas production with solar energy to meet growing demand for electricity.
The agreed projects will cost US $ 10 billion in capital expenditure, and over the next 25 years the investment will reach US $ 27 billion including operational expenses.
According to ReutersPouyanné said the plan is to mobilize teams in Iraq by the end of 2021.
Pouyanné commented: “Our ambition is to help Iraq build a more sustainable future by developing access to electricity for its population through a more sustainable use of the country’s natural resources such as: reducing flaring gas that generates air pollution and greenhouse gas emissions, water resource management and solar energy development.