Iraq and TotalEnergies have signed a massive oil, gas, and renewables deal

July 12, 2023

The long-awaited agreement, signed in 2021, will allow for the construction of four oil, gas, and renewable energy projects. 

Image Source: Middle East Online

TotalEnergies Chairman and CEO Patrick Pouyanne signed the agreement in Baghdad with Iraqi oil minister Hayan Abdel-Ghani, calling it a “historic day.”

“This is the starting day, and we’ll deliver the projects in the next four years for the benefit of everybody in Iraq,” he said.

“It is the real beginning of investment in renewable energy in Iraq,” Abdel-Ghani said of the solar project.

Exxon Mobil, Shell, and BP have all reduced their operations in Iraq in recent years, contributing to oil production stagnation. In recent years, Iraq’s oil production capacity has remained around 5 million barrels per day. The deal was completed in April, when Iraq agreed to take a 30 percent stake in the project, rather than the initially demanded 45 percent, with TotalEnergies holding the remaining 25 percent. The Gas Growth Integrated Project (GGIP) aims to improve the country’s electricity supply by recovering flared gas from three oilfields and supplying power plants with it.

Source: Microsoft Start

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