Last February, the Iraqi Oil Ministry indicated that the implementation of this contract with the French group was still coming up against points of persistent disagreement. The project called GGIP (Gas Growth Integrated Project) “aims to develop Iraq’s natural resources in order to improve the country’s electricity supply”, recalls the press release.
“Thanks to discussions over the past few 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 the mutual assurances necessary to move forward on the GGIP (Gas Growth Integrated Project) project”, is it detailed.
The Iraqi government and TotalEnergies “have agreed on a 30% stake of the Basrah Oil Company (BOC) in the GGIP project. In addition, in agreement with the Iraqi government, TotalEnergies has invited QatarEnergy to take a stake of 25% in this project”, specifies the press release.
The consortium will thus be composed of TotalEnergies (45%), Basrah Oil Company (30%) and QatarEnergy (25%).
TotalEnergies “welcomes the continuity of the 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 billion dollars in particular to recover the gas flared on three oil fields in order to supply gas to power stations, to build a seawater treatment plant with a view to maintain pressure from oil fields and increase regional production”.
“In addition, TotalEnergies will develop a giant 1 GW solar power plant intended to supply the electricity grid of the Basra region. In agreement with the Iraqi authorities, TotalEnergies has invited the Saudi company ACWA Power to participate in this solar project”, indicates the press release.
© 2023 AFP