Iraq and Total sign $ 27 billion deal on energy projects

BAGHDAD, Sept. 5 (Reuters) – French Total (TTEF.PA) to build four giant energy projects in southern Iraq under a $ 27 billion deal signed Sunday in Baghdad, oil minister said of the country.

The company will begin with an initial investment of $ 10 billion, Patrick Pouyanne, CEO, said at the signing ceremony, adding that engineering work will begin “immediately.”

The plan is to mobilize teams in Iraq by the end of 2021, he said.

Iraqi Oil Minister Ihsan Abdul Jabbar said the first phase will include a $ 3 billion investment by the French group in a project to inject seawater into oil fields to improve oil recovery.

Total, he added, will also provide $ 2 billion to build a gas processing plant produced in the southern fields of West Qurna 2, Majnoon, Artawi, Tuba and Luhais.

It is expected to produce 300 million cubic feet of gas a day (mcf / d) and double that after a second phase of development, Jabbar said.

The oil minister said gas produced from Total’s project in the south will help Iraq reduce its gas imports from Iran, as domestically produced gas will also be cheaper than Iranian gas. .

The cost of imported gas from Iran is around $ 8 per million BTU and the gas that will be produced from the Total project would be $ 1.50 per million BTU cheaper, Jabbar said.

The other two projects are a solar power plant and one to increase crude oil production at the Artawi oil field.

Total will help increase production at the Artawi field to 210,000 barrels per day of oil (bpd) from the current 85,000 bpd, according to a statement from the oil ministry.

Ahmed Rasheed Reports Written by Maher Chmaytelli Edited by David Goodman

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