Baghdad has recently entered into an agreement with TotalEnergies, a French multinational energy company, to acquire a 30% stake in its $27 billion Iraq project. This project includes the development of four oil, gas, and renewable projects in southern Iraq over 25 years. In this article, we will discuss the details of the agreement and the potential benefits it could bring to Iraq’s energy sector.
According to two anonymous sources who spoke to Reuters, the deal was signed in 2021 between Baghdad and TotalEnergies. Under the agreement, Baghdad will hold a 30% stake in the $27 billion project, while TotalEnergies will lead the project’s development and have a 51% stake. The remaining 19% will be held by PetroChina, a Chinese state-owned oil and gas company.
The $27 billion Iraq project is a significant investment for TotalEnergies, and it is expected to create job opportunities and contribute to Iraq’s economic growth. The project comprises four key initiatives: the development of the Ratawi gas hub, the construction of a seawater treatment facility, a solar power project, and a 1,000-megawatt gas power plant.
Benefits of the Agreement
The partnership between Baghdad and TotalEnergies is expected to have a positive impact on Iraq’s energy sector. The project will provide Iraq with the resources needed to meet the country’s growing demand for energy and to reduce its reliance on oil. Additionally, the project will create job opportunities, stimulate economic growth, and increase Iraq’s access to clean and renewable energy.
Furthermore, the project will help to improve the efficiency of Iraq’s oil and gas sector. The Ratawi gas hub, for instance, will capture gas that is currently flared and use it for power generation and industrial purposes. This will help to reduce the environmental impact of Iraq’s oil and gas operations while also increasing the country’s energy security.
The agreement between Baghdad and TotalEnergies is a significant step towards developing Iraq’s energy sector and reducing the country’s reliance on oil. The $27 billion project is expected to provide job opportunities, stimulate economic growth, and increase Iraq’s access to clean and renewable energy. Additionally, the project will help to improve the efficiency of Iraq’s oil and gas sector while reducing its environmental impact. Overall, this partnership is an important development for Iraq and its energy future.