Last February, the Iraqi Oil Ministry indicated that the implementation of this contract with the French group still stumbled on 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," the statement said.
"Thanks to discussions in recent months, in particular four times 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 mutual assurances necessary to move forward on the GGIP (Gas Growth Integrated Project)", is it detailed.
The Iraqi government and TotalEnergies "have agreed on a 30% stake by the Basrah Oil Company (BOC) in the GGIP project. In addition, in agreement with the Iraqi government, TotalEnergies has invited QatarEnergy to take a 25% stake in this project," the statement said.
The consortium will 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 "about $ 10 billion to recover flared gas on three oil fields to supply gas to power plants, build a seawater treatment plant to maintain the pressure of oil fields and increase regional production".
"In addition, TotalEnergies will develop a giant 1 GW solar power plant to supply the power 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," the statement said.
© 2023 AFP