TotalEnergies and the Iraqi Government have defined the conditions and mutual assurances necessary to move forward with the Integrated Gas Growth Project (GGIP).
This comes after confirming all terms of the development and production contract signed by the two sides in 2021. The terms were confirmed through exchanges in recent months, including on four occasions between Iraqi Prime Minister Al-Sudani and president and CEO of TotalEnergies, Patrick Pouyanne. .
As a result, the Iraqi government and TotalEnergies have agreed to a 30 percent stake of Basrah Oil Company (BOC) in the GGIP. In addition, in agreement with the Iraqi government, TotalEnergies has invited QatarEnergy to take a 25 percent stake in the GGIP.
The consortium will be comprised of TotalEnergies, which will hold a 45 percent stake, Basrah Oil Company, which will hold a 30 percent stake, and QatarEnergy, which will hold a 25 percent stake.
“TotalEnergies welcomes the continued voice of the State of Iraq in this development and production contract, which is a strong and positive signal for foreign investment in the country,” the French energy giant said in a statement.
Signed in September 2021, the main objective of the GGIP is to enhance the development of Iraq’s natural resources to improve the country’s electricity supply.
Under these agreements, TotalEnergies will invest approximately $10 billion to recover gas flared in three oil fields to supply gas to power generation plants and to build a seawater treatment plant to provide injection water for pressure maintenance to increase regional oil production, as an alternative to the use of fresh water from rivers and aquifers.
In addition, TotalEnergies will develop a 1 GW solar power plant to supply electricity to Basra’s regional grid. According to the Iraqi authorities, TotalEnergies will invite the Saudi company ACWA Power to join this solar project.
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